Source-cited draft: tax overview for Somalia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
General reference only
This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Somalia tax system at a glance | 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 | |
| Currency | Somali Shilling (SOS); US dollars (USD) widely used and many tax brackets are USD-denominatedFederal Ministry of Finance — Revenue Directorate | |
| 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 | |
| Basis of taxation | Income arising in / sourced from Somalia is taxable; residents taxed on Somali-source income with a developing framework for worldwide incomeIncome Tax Law (Law No. 5 of 7 November 1966, as amended) | |
| Headline personal income tax (top rate) | 18% on monthly employment income above USD 1,500Somalia Investment Promotion Office — Tax Regime |
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).
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Other Somalia computations in the OpenAccountants library.
| Headline corporate income tax (top rate) | 30% on annual business income above USD 30,000 (progressive from 9%)Somalia Investment Promotion Office — 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) |
| Headline sales tax rate | 5%Federal Ministry of Finance — Sales Tax |
| Capital gains tax | No separate capital gains tax regime currently applied (0%)Income Tax Law (Law No. 5 of 1966, as amended) |
| Main filing obligations | Sales tax remitted monthly to the Inland Revenue Department; income tax registration on Form TR1; annual deadlines not yet uniformly codifiedInland Revenue Department — taxpayer registration (Form TR1) |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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