Djibouti vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π©π― Djibouti β Djibouti Tax System
Djibouti has progressive income tax up to 30%. The country is strategically important as a maritime hub and hosts multiple foreign military bases (US, France, China, Italy, Japan), which provide significant lease revenue. The Port of Djibouti handles ~95% of Ethiopian imports/exports. VAT at 10% was introduced in 2009. Free trade zones offer tax exemptions.
π―π΅ Japan β Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (δ½ζ°η¨) at a flat 10% on top of national income tax β 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Djibouti vs Japan: Key Tax Differences (2026)
π° Income Tax: π―π΅ Japan has a higher top income tax rate (0β30% vs 5β45%). π©π― Djibouti is more favourable for high earners.
π VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 8β10%).
π’ Corporate Tax: π©π― Djibouti offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.
π Capital Gains: π―π΅ Japan taxes investment gains at a lower rate (20.315% vs 25%), benefiting investors.