Source-cited draft: personal income tax for Somalia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Monthly income up to USD 200
0% (tax-free)Somalia Investment Promotion Office — Tax Regime (https://sominvest.gov.so/procedures/tax-regime/)
Monthly income USD 201 – 800
Progressive rate (commonly cited 12%–6% band)Somalia Investment Promotion Office — Tax Regime (https://sominvest.gov.so/procedures/tax-regime/)
Monthly income USD 801 – 1,500
Progressive rate up to ~15%Somalia Investment Promotion Office — Tax Regime (https://sominvest.gov.so/procedures/tax-regime/)
Monthly income above USD 1,500
18%Somalia Investment Promotion Office — Tax Regime (https://sominvest.gov.so/procedures/tax-regime/)
Tax-free threshold
First USD 200 of monthly employment income is exemptSomalia Investment Promotion Office — Tax Regime (https://sominvest.gov.so/procedures/tax-regime/)
Quarterly rental income USD 500 – 20,000
15%Somalia Investment Promotion Office — Tax Regime (Law No. 5 of 1966) (https://sominvest.gov.so/procedures/tax-regime/)
Quarterly rental income above USD 20,000
22.5%Somalia Investment Promotion Office — Tax Regime (Law No. 5 of 1966) (https://sominvest.gov.so/procedures/tax-regime/)
Residence test
Individuals present/working in Somalia and earning Somali-source income are within charge; a precise day-count residence test is not yet uniformly codifiedIncome Tax Law (Law No. 5 of 1966, as amended) (https://www.revenuedirectorate.gov.so/direct-tax)
Non-residents
Taxed on Somali-source income; employment income subject to the same PAYE withholding on Somali-source earningsIncome Tax Law (Law No. 5 of 1966, as amended) (https://www.revenuedirectorate.gov.so/direct-tax)
Collection method
Employers withhold income tax from gross monthly salary under a PAYE system and remit to the Inland Revenue DepartmentInland Revenue Department — PAYE withholding (https://www.revenuedirectorate.gov.so/direct-tax)
Taxpayer registration
Anyone earning business or investment income in Somalia must register with the IRD on Form TR1Inland Revenue Department — taxpayer registration (Form TR1) (https://www.revenuedirectorate.gov.so/direct-tax)
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