Somalia Tax Rates
Somalia has a limited formal tax system due to decades of conflict. The Federal Government of Somalia has been working to rebuild tax administration. Personal income tax rates reach up to 30%, and corporate tax is set at 10-15%. Somalia relies heavily on customs duties and indirect taxes for government revenue.
Top Income Tax Rate
30%
Corporate Tax Rate
15%
VAT / Sales Tax
5%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Somalia levies income tax with rates up to 30%. Tax collection and enforcement remain limited due to ongoing governance challenges. Somaliland and Puntland regions may have their own tax arrangements.
| Income Range | Tax Rate |
|---|---|
| Sh 0 – Sh 600K | 0% |
| Sh 600K – Sh 3.6M | 15% |
| Sh 3.6M+ | 30% |
Corporate Tax
Corporate tax is levied at rates between 10% and 15% depending on the type of business. Tax enforcement varies by region and is being strengthened through international support.
Standard Rate
15%
Capital Gains Tax
Somalia does not have a well-established capital gains tax regime. Property and asset transactions may be subject to stamp duties.
Rate
0%
VAT / Sales Tax
A sales tax of approximately 5% applies to certain goods and services. Somalia has been working to introduce a formal VAT system with international assistance.
Standard Rate
5%
Cryptocurrency Tax
Somalia does not have cryptocurrency legislation. Mobile money (such as through services like Hormuud/EVC Plus) is widely used, but cryptocurrency regulation is absent.
Tax Treaties
Somalia has very limited treaty coverage due to its governance challenges.
Treaty Network
1
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Somalia
See how much you could save by moving here from your current country.
+$24K
Tax in United States
$24K
24.4% effective
Tax in Somalia
$0
0% effective
You Save
100%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
