Somalia Corporate Income Tax

Corporate / business income tax

Company (business profit) tax is payable to the Federal Government of Somalia on a progressive scale by annual income, with USD-denominated brackets. Top-rate and threshold figures below come from the Somalia Investment Promotion Office; a licensed Somali accountant should confirm the intermediate brackets and withholding rates.

• Corporate income tax structure — Progressive rates from 9% to 30% by annual income band (brackets start around USD 2,400) % (Somalia Investment Promotion Office — Tax Regime)
• Top corporate rate — 30% on annual business income above USD 30,000 % (Somalia Investment Promotion Office — Tax Regime)
• Entry threshold for company tax — Progressive brackets begin around USD 2,400 of annual income USD ((approx — confirm)) (Somalia Investment Promotion Office — Tax Regime)
• Alternative cited rate range — Some guides report an effective company tax of 10%–15% for many businesses % ((approx — confirm)) (TaxAtlas — Somalia tax summary)
• Tax base — Net business profit (income less allowable expenses) arising in Somalia ((approx — confirm)) (Income Tax Law (Law No. 5 of 1966, as amended))
• Withholding tax — Withholding tax is recognised as a direct-tax category; specific statutory rates on dividends, interest and royalties are not uniformly published ((approx — confirm)) (Somalia Investment Promotion Office — Tax Regime)
• WHT on dividends — Rate not uniformly published — confirm with the Inland Revenue Department ((approx — confirm)) (Inland Revenue Department)
• WHT on interest — Rate not uniformly published — confirm with the Inland Revenue Department ((approx — confirm)) (Inland Revenue Department)
• WHT on royalties — Rate not uniformly published — confirm with the Inland Revenue Department ((approx — confirm)) (Inland Revenue Department)
• Filing / payment deadlines — Annual corporate filing deadlines not yet uniformly codified; sales tax and payroll withholding remitted monthly ((approx — confirm)) (Inland Revenue Department)