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Djibouti vs Saudi Arabia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡― Djibouti
vs
πŸ‡ΈπŸ‡¦ Saudi Arabia
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–30%
No change
0% / 20%
No personal income tax; competitive positioning maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
No change
15%
15% VAT stable; GCC harmonization efforts
No change
Corporate Tax Rate
Corporate Tax Rate
25%
No change
20%
20% CIT; special economic zone (NEOM etc.) benefits
No change
Capital Gains Tax
Capital Gains Tax
Taxed as income
No change
20%
20% via CIT framework
No change
Social Security & Payroll
Social Security / Payroll
4% + 7%
No change
~22.5%
GOSI contribution rates stable; expat levy increasing
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡― 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.

πŸ‡ΈπŸ‡¦ Saudi Arabia β€” Zakat, Salam & Municipality Fees

Saudi Arabia has no local or regional income taxes on individuals β€” the Kingdom operates as a unitary state for tax purposes. Municipalities (amanaat) collect fees for commercial licences, land use, and services. Zakat (Islamic wealth levy at 2.5% of Zakat base) applies to Saudi nationals and GCC citizens with business income, instead of income tax. Foreign companies pay CIT at 20%. The government levies municipality fees of 2.5% on commercial and residential rents. Vision 2030 is transforming the fiscal landscape.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Djibouti vs Saudi Arabia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡― Djibouti has a higher top income tax rate (0–30% vs 0% / 20%). πŸ‡ΈπŸ‡¦ Saudi Arabia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Saudi Arabia has a higher consumption tax (10% vs 15%).

🏒 Corporate Tax: πŸ‡ΈπŸ‡¦ Saudi Arabia offers a lower corporate rate (20% vs 25%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΈπŸ‡¦ Saudi Arabia taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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