Flat rate
0.0%
Duration
50 years
Prior non-residency
—
required before applying
Standard top income tax
30.0%
Djibouti, without the regime
Overview
- Regime
- Zone franche (Free Zone Code)
- Country
- Djibouti
- Type
- Free zone
- Status
- Active
- Effective from
- May 17, 2004
- Expires on
- —
Details
- Summary
- Licensed free-zone companies are exempt from direct taxes (including corporate income tax) for up to 50 years; VAT still applies under the CGI.
- Eligibility
- Companies and individual operators licensed under Law 53/AN/04 (Free Zones Code).
- Benefits
- Exemption from direct taxes including income tax; guaranteed free transfer of capital and profits abroad for up to 50 years from start of activities.
- Requirements
- Operate within a designated free zone; hold a tax identification number and file annual statements despite exemption.
- Limitations
- Employees remain subject to salary tax (ITS) at standard rates; VAT and customs rules apply on domestic sales and certain services.
- Income types covered
- Business profits of qualifying free-zone entities
- Duration details
- Up to 50 years from licence issuance, renewable by the Free Zone Authority.
Other regimes in Djibouti
| Name | Type | Rate |
|---|---|---|
| Code des investissements (approved projects) | Exemption | — |
View source Free Zones Code art. 32