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Presumptive Tax Regime (PTR)

Active Flat rate

Somalia · special tax regime

Flat rate 1.5% minimum tax USD 38
Duration —
Prior non-residency — required before applying
Standard top income tax 18.0% Somalia, without the regime

Overview

Regime
Presumptive Tax Regime (PTR)
Country
Somalia
Type
Flat rate
Status
Active
Effective from
May 11, 2025
Expires on
—

Details

Summary
Simplified quarterly turnover tax for eligible resident individuals with Somalia-source business income.
Eligibility
Resident natural persons with rolling three-year average business turnover not exceeding USD 50,000, Somalia-source income only, not a partnership partner, and not on the excluded professional or property-leasing lists.
Benefits
Quarterly payment of the higher of USD 37.50 or 1.5% of quarterly turnover instead of full profit-based PIT record-keeping.
Requirements
Cash-basis turnover reporting; Revenue Directorate may refuse or deregister taxpayers who can maintain full accounts.
Limitations
Not available to corporations, partnerships, or turnover above the USD 50,000 threshold; professionals listed in the manual are excluded.
Income types covered
Service fees, trading stock proceeds, and investment income effectively connected with the business

View source MoF Income Tax Manual 2025

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