So Tax Overview

---
name: so-tax-overview
description: "Source-cited draft: tax overview for Somalia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/so-tax-overview"
  jurisdiction: "SO"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Somalia Tax Overview

## Somalia tax system at a glance

- **Overview** — Somalia operates a developing tax system administered by the Federal Government, rebuilt over the past decade with international support. Many federal tax figures are denominated in US dollars because the economy is heavily dollarized, and enforcement remains uneven across regions (Puntland and Somaliland administer significant taxes separately).
- **Tax year** — Calendar year, 1 January to 31 December  _(Income Tax Regulation (No. 0141, 2025), Federal Ministry of Finance — https://taxatlas.io/country/somalia)_
- **Currency** — Somali Shilling (SOS); US dollars (USD) widely used and many tax brackets are USD-denominated  _(Federal Ministry of Finance — Revenue Directorate — https://www.revenuedirectorate.gov.so/direct-tax)_
- **Tax authority** — Federal Ministry of Finance — Directorate General of Revenue (Inland Revenue Department for domestic taxes; Customs Department for import taxes)  _(Federal Ministry of Finance — Revenue Department — https://mof.gov.so/departments/revenue-department)_
- **Basis of taxation** — Income arising in / sourced from Somalia is taxable; residents taxed on Somali-source income with a developing framework for worldwide income ((approx — confirm)) (approx — confirm)  _(Income Tax Law (Law No. 5 of 7 November 1966, as amended) — https://sominvest.gov.so/procedures/tax-regime/)_
- **Headline personal income tax (top rate)** — 18% on monthly employment income above USD 1,500 %  _(Somalia Investment Promotion Office — Tax Regime — https://sominvest.gov.so/procedures/tax-regime/)_
- **Headline corporate income tax (top rate)** — 30% on annual business income above USD 30,000 (progressive from 9%) %  _(Somalia Investment Promotion Office — Tax Regime — https://sominvest.gov.so/procedures/tax-regime/)_
- **VAT / GST** — No full VAT yet; a Sales Tax at 5% applies (a formal VAT system is under development)  _(Federal Ministry of Finance — Sales Tax (split-payment regime, 2024) — https://www.vatcalc.com/somalia/somalia-split-payments-sales-tax/)_
- **Headline sales tax rate** — 5% %  _(Federal Ministry of Finance — Sales Tax — https://tradingeconomics.com/somalia/sales-tax-rate)_
- **Capital gains tax** — No separate capital gains tax regime currently applied (0%) ((approx — confirm)) % (approx — confirm)  _(Income Tax Law (Law No. 5 of 1966, as amended) — https://taxatlas.io/country/somalia)_
- **Main filing obligations** — Sales tax remitted monthly to the Inland Revenue Department; income tax registration on Form TR1; annual deadlines not yet uniformly codified ((approx — confirm)) (approx — confirm)  _(Inland Revenue Department — taxpayer registration (Form TR1) — https://www.revenuedirectorate.gov.so/direct-tax)_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `so-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/so-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.