Source-cited draft: tax overview for Somalia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Overview
Somalia operates a developing tax system administered by the Federal Government, rebuilt over the past decade with international support. Many federal tax figures are denominated in US dollars because the economy is heavily dollarized, and enforcement remains uneven across regions (Puntland and Somaliland administer significant taxes separately).
Tax year
Calendar year, 1 January to 31 DecemberIncome Tax Regulation (No. 0141, 2025), Federal Ministry of Finance — https://taxatlas.io/country/somalia
Currency
Somali Shilling (SOS); US dollars (USD) widely used and many tax brackets are USD-denominatedFederal Ministry of Finance — Revenue Directorate — https://www.revenuedirectorate.gov.so/direct-tax
Tax authority
Federal Ministry of Finance — Directorate General of Revenue (Inland Revenue Department for domestic taxes; Customs Department for import taxes)Federal Ministry of Finance — Revenue Department — https://mof.gov.so/departments/revenue-department
Basis of taxation
Income arising in / sourced from Somalia is taxable; residents taxed on Somali-source income with a developing framework for worldwide income ((approx — confirm))Income Tax Law (Law No. 5 of 7 November 1966, as amended) — https://sominvest.gov.so/procedures/tax-regime/
Headline personal income tax (top rate)
18% on monthly employment income above USD 1,500Somalia Investment Promotion Office — Tax Regime — https://sominvest.gov.so/procedures/tax-regime/
Headline corporate income tax (top rate)
30% on annual business income above USD 30,000 (progressive from 9%)Somalia Investment Promotion Office — Tax Regime — https://sominvest.gov.so/procedures/tax-regime/
VAT / GST
No full VAT yet; a Sales Tax at 5% applies (a formal VAT system is under development)Federal Ministry of Finance — Sales Tax (split-payment regime, 2024) — https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/
Headline sales tax rate
5%Federal Ministry of Finance — Sales Tax — https://tradingeconomics.com/somalia/sales-tax-rate
Capital gains tax
No separate capital gains tax regime currently applied (0%) ((approx — confirm))Income Tax Law (Law No. 5 of 1966, as amended) — https://taxatlas.io/country/somalia
Main filing obligations
Sales tax remitted monthly to the Inland Revenue Department; income tax registration on Form TR1; annual deadlines not yet uniformly codified ((approx — confirm))Inland Revenue Department — taxpayer registration (Form TR1) — https://www.revenuedirectorate.gov.so/direct-tax
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Other Somalia computations in the OpenAccountants Tax Library.