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Somalia vs Germany
Tax Rate Comparison

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

🇸🇴 Somalia
vs
🇩🇪 Germany
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
No change
7–19%
Standard 19% unchanged
No change

Corporate Tax Rate

Corporate Tax Rate
30%
No change
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025

Capital Gains Tax

Capital Gains Tax
N/A
No change
25%
Investment income reform proposals under review
No change

Social Security & Payroll

Social Security / Payroll
N/A
No change
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
State, Regional & Local Taxes

🇸🇴 SomaliaSomalia 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.

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ 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.

Somalia vs Germany: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (0–30% vs 14–45%). 🇸🇴 Somalia is more favourable for high earners.

🛒 VAT/Sales Tax: Germany has a higher consumption tax (10% vs 7–19%).

🏢 Corporate Tax: 🇩🇪 Germany offers a lower corporate rate (29% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇸🇴 Somalia taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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All 🇸🇴 Somalia comparisons →All 🇩🇪 Germany comparisons →