Djibouti vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
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.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) at a flat 10% on top of national income tax โ 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Djibouti vs Japan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (0โ30% vs 5โ45%). ๐ฉ๐ฏ Djibouti is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 8โ10%).
๐ข Corporate Tax: ๐ฉ๐ฏ Djibouti offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐ฏ๐ต Japan taxes investment gains at a lower rate (20.315% vs 25%), benefiting investors.