Yemen Tax Rates
Yemen operates a progressive income tax system with rates from 10% to 20%, administered by the Tax Authority. The standard corporate tax rate is 20%, and a 5% general sales tax applies. The ongoing civil conflict has severely disrupted the economy and tax system, with split governance affecting tax collection and administration.
Top Income Tax Rate
20%
Corporate Tax Rate
20%
VAT / Sales Tax
5%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
Yemen's personal income tax applies progressive rates from 0% to 20%. An annual exemption of YER 120,000 applies. Residents are taxed on Yemeni-sourced income. The civil conflict has severely impacted tax enforcement.
| Income Range | Tax Rate |
|---|---|
| YER 0 – YER 120K | 0% |
| YER 120K – YER 600K | 10% |
| YER 600K – YER 1.2M | 15% |
| YER 1.2M+ | 20% |
Corporate Tax
Yemen's corporate tax rate is 20% on taxable profits. Oil and gas companies pay a 35% rate on production sharing income. The conflict has significantly reduced formal corporate activity.
Standard Rate
20%
Capital Gains Tax
Capital gains are included in taxable income at standard rates.
Rate
20%
VAT / Sales Tax
Yemen imposes a general sales tax of 5% on most goods and services. Essential items are exempt. The sales tax system operates in limited capacity due to the conflict.
Standard Rate
5%
Cryptocurrency Tax
Yemen has no cryptocurrency regulation. Infrastructure limitations and conflict severely restrict financial technology adoption.
Tax Treaties
Yemen has approximately 10 tax treaties, with limited practical application due to the ongoing conflict.
Treaty Network
10
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Yemen
See how much you could save by moving here from your current country.
+$18K
Tax in United States
$24K
24.4% effective
Tax in Yemen
$6K
6% effective
You Save
75.4%
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.
