DoubleTaxationTaxes on salary: Somalia preliminary data
How much income tax and social contributions are paid on a salary in Somalia, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | $70,326 ≈ €60,000 |
|---|---|
| Income tax | $11,147 ≈ €9,510 |
| Take-home pay | $59,179 ≈ €50,490 |
| Employer's labour cost | $70,326 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 $35,163 | €60,000 $70,326 | €120,000 $140,652 |
|---|---|---|---|
| Sole proprietor | $4,184 13.2 % | $9,881 15.6 % | $21,274 16.8 % |
| Company | $4,747 15.0 % | $9,494 15.0 % | $18,988 15.0 % |
| Sole proprietor · Small business flat tax | above the regime's limit | above the regime's limit | above the regime's limit |
| Sole proprietor · Medium business turnover tax | $527 1.7 % | above the regime's limit | above the regime's limit |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Somalia yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.1721 USD (Not applicable — the Federal Government's tax laws set brackets in US dollars, so figures are recorded in USD; no Central Bank of Somalia SOS reference rate was found (IMF series stops in 2017), 2026-01-02) ↗
Sources
- Federal Government of Somalia, Revenue Directorate — Direct Tax (Income Tax Law No. 37 of 2025)
- Somali Investment Promotion Office — Tax regime (older Law No. 5 of 1966 scales)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.