- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
SO
Somalia
Eastern Africa
SOS
SO · SOM · #43 · 7 cities
Nomad score
30/100
Compare
Top income tax
18.0%
Worldwide system
Corporate tax
15.0%
Sales Tax
5.0%
standard rate
Tax residency
183 days
1 tax treaties
Somalia tax profile
Data year: 2026
- Tax system
- Worldwide The Income Tax Act 2025 (ITA 2025), effective 11 May 2025, replaced the 1966 direct tax framework. Residents are taxed on worldwide employment, business and investment income; non-residents pay on Somalia-source income and on income attributable to a Somali permanent establishment (90+ days in any 12-month period). Personal and corporate income tax returns and payments use United States dollars on official forms. The federal sales tax remains a 5% levy on most domestic supplies and imports, with higher sectoral rates (for example 15% telecommunications, 25% banks and express services). Customs duties and non-tax levies remain important revenue sources not covered here.
- Top PIT rate
- 18.0%
- Corporate tax rate
- 15.0%
- Sales Tax
- 5.0%
- Capital gains tax
- 15.0% Gain on investment assets (GIA) is taxed on disposal of chargeable assets such as land, buildings and shareholdings. Withholding on capital gains is 15% at source in the First Schedule. Where total chargeable income including GIA does not exceed USD 18,000, gains follow the progressive PIT scale; above that threshold, concessional 15% and 18% rates apply to portions of GIA and other excess income as illustrated in the manual. A USD 100,000 gain exemption applies to the disposal of a primary private residence before taxing the remainder (the manual example uses a 10% rate on the taxable balance).
- Social security (employee)
- Rate not recorded
- Social security (employer)
- Rate not recorded
- Dividend withholding
- 5.0%
- Interest withholding
- 10.0%
- Royalty withholding
- 15.0%
- Treaty count
- 1
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| USD 0 | and above | 15.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| USD 0 | USD 1,200 | 0.0% |
| USD 1,201 | USD 6,000 | 6.0% |
| USD 6,001 | USD 18,000 | 12.0% |
| USD 18,001 | and above | 18.0% |
Special regimes (1)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Presumptive Tax Regime (PTR) Simplified quarterly turnover tax for eligible resident individuals with Somalia... | 1.5% | Duration not recorded | Active |
Tax flags
Participation Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- An individual is resident with a permanent home in Somalia, as a Somali citizen without a permanent home abroad available for the whole year, with 183 or more days in Somalia in any 12-month period that starts or ends in the tax year, or as a federal or state government employee posted abroad. Corporations are resident if incorporated in Somalia or effectively managed there. Non-resident individuals pay 18% flat PIT on Somalia-source business income; resident minors under 18 use a 20% flat rate on covered income.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- March 31
Sources
- MoF — Income Tax Manual (ITA 2025) (accessed Oct 9, 2026) PIT/CIT rates and brackets, residency, WHT, GIA, PTR, filing and instalment calendar (effective 11 May 2025)
- Somalia Revenue Directorate — Indirect Tax (accessed Oct 9, 2026) Sales tax 5% standard; sectoral 10–25% on listed supplies
- MoF — Medium-Term Revenue Strategy (June 2024) (accessed Oct 9, 2026) Revenue mix context; 5% consumption tax; income tax reform trajectory
- PwC Worldwide Tax Summaries — CIT quick chart (accessed Oct 9, 2026) Legacy third-party chart; no dedicated Somalia territory page (404); not used for ITA 2025 rates
Change history
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- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source
-
- Income tax brackets updated
ITA 2025 refresh: worldwide tax system, PIT 18% brackets, CIT 15%, sales tax 5%, WHT, PTR regime, authority URL, residency 183 days, filing March 31, treaty count 1 Source