Somalia vs Djibouti
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.
πΈπ΄ Somalia β Somalia Tax System
Somalia's formal tax system is extremely limited. The Federal Government has been rebuilding fiscal capacity since 2012 after decades of civil war. Tax revenue is less than 2% of GDP. Customs duties at ports (especially Mogadishu) are the main revenue source. Al-Shabaab controls much of the south and runs a parallel extortion-based taxation system. Income tax legislation exists on paper but enforcement is minimal.
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.
Somalia vs Djibouti: Key Tax Differences (2026)
π° Income Tax: Somalia and Djibouti have similar top income tax rates (0β30% vs 0β30%).
π VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).
π’ Corporate Tax: π©π― Djibouti offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ΄ Somalia taxes investment gains at a lower rate (0% vs 25%), benefiting investors.