Afghanistan vs Djibouti
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐ซ Afghanistan โ Afghanistan Tax System
Afghanistan's formal tax system has largely collapsed since the Taliban takeover in August 2021. The Taliban government (Islamic Emirate of Afghanistan) has implemented its own revenue collection based on Islamic principles โ zakat (2.5% wealth tax on assets held for a year), ushr (10% agricultural tithe), and customs duties. International sanctions have frozen most government assets. USAID and World Bank tax programs ended. The formal income tax system from the previous government nominally exists but is not enforced.
๐ฉ๐ฏ Djibouti โ Djibouti Tax System
Djibouti has progressive income tax up to 30%. The country is strategically important as a maritime hub and hosts multiple foreign military bases (US, France, China, Italy, Japan), which provide significant lease revenue. The Port of Djibouti handles ~95% of Ethiopian imports/exports. VAT at 10% was introduced in 2009. Free trade zones offer tax exemptions.
Afghanistan vs Djibouti: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ฏ Djibouti has a higher top income tax rate (0โ20% vs 0โ30%). ๐ฆ๐ซ Afghanistan is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).
๐ข Corporate Tax: ๐ฆ๐ซ Afghanistan offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ซ Afghanistan taxes investment gains at a lower rate (0% vs 25%), benefiting investors.