Somalia Payroll & Social Contributions

Payroll withholding and social contributions

Employers operate PAYE withholding on employees' monthly salaries and remit to the Inland Revenue Department. Somalia does not yet have a comprehensive, nationally codified social-security contribution scheme; published employer/employee contribution rates are limited and should be confirmed with a local accountant.

• Payroll withholding (PAYE) — Employers withhold progressive income tax from gross monthly salary (0% up to USD 200, rising to 18% above USD 1,500) % (Inland Revenue Department — PAYE withholding)
• Remittance deadline — PAYE and sales tax remitted monthly to the Inland Revenue Department ((approx — confirm)) (Inland Revenue Department)
• Social security scheme — No comprehensive national social-security / pension contribution scheme is yet uniformly enforced at the federal level ((approx — confirm)) (Federal Ministry of Finance — Revenue Directorate)
• Employer social-security contribution — No uniformly published statutory employer contribution rate — confirm locally ((approx — confirm)) (Federal Ministry of Finance — Revenue Directorate)
• Employee social-security contribution — No uniformly published statutory employee contribution rate — confirm locally ((approx — confirm)) (Federal Ministry of Finance — Revenue Directorate)
• Wage base / cap — PAYE applied to gross monthly employment income; no published cap on the income-tax base ((approx — confirm)) (Inland Revenue Department — PAYE)
• Employer registration — Employers must register with the Inland Revenue Department and obtain a Tax Identification Number to operate payroll withholding (Inland Revenue Department — taxpayer registration (Form TR1))
• Payroll currency — Formal-sector salaries and PAYE bands are commonly expressed in USD (Somalia Investment Promotion Office — Tax Regime)