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Nigeria vs Somalia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡³πŸ‡¬ Nigeria
vs
πŸ‡ΈπŸ‡΄ Somalia
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
7–24%
Tax reform bill (2024) restructuring rates; implementation phased
No change
0–30%
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7.5%
7.5% maintained; reform bill proposes higher rate
No change
10%
No change
Corporate Tax Rate
Corporate Tax Rate
25%
Reform bill reducing to 25% for large companies
β–Ό -5.0pp vs 2025
30%
No change
Capital Gains Tax
Capital Gains Tax
10%
10% stable
No change
N/A
No change
Social Security & Payroll
Social Security / Payroll
18%
18% total maintained; pension fund growing
No change
N/A
No change
State, Regional & Local Taxes

πŸ‡³πŸ‡¬ Nigeria β€” State & Local Government Taxes

Nigeria's 36 states and FCT each have their own Personal Income Tax Law (PITL), though rates follow a national schedule. States levy property rates, land use charges, and business premises levies. The 774 local government areas (LGAs) levy tenement rates and market fees. Only federal employees and residents in the FCT pay federal income tax to FIRS; all others pay to state tax authorities. VAT revenue is shared: 15% FIRS, 50% states, 35% LGAs.

πŸ‡ΈπŸ‡΄ Somalia β€” Somalia Tax System

Somalia's formal tax system is extremely limited. The Federal Government has been rebuilding fiscal capacity since 2012 after decades of civil war. Tax revenue is less than 2% of GDP. Customs duties at ports (especially Mogadishu) are the main revenue source. Al-Shabaab controls much of the south and runs a parallel extortion-based taxation system. Income tax legislation exists on paper but enforcement is minimal.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Nigeria vs Somalia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΈπŸ‡΄ Somalia has a higher top income tax rate (7–24% vs 0–30%). πŸ‡³πŸ‡¬ Nigeria is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Somalia has a higher consumption tax (7.5% vs 10%).

🏒 Corporate Tax: πŸ‡³πŸ‡¬ Nigeria offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΈπŸ‡΄ Somalia taxes investment gains at a lower rate (0% vs 10%), benefiting investors.

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