Somalia vs Hungary
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇸🇴 Somalia — 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.
🇭🇺 Hungary — Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi Iparűzési Adó (HIPA — local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (építményadó) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
Somalia vs Hungary: Key Tax Differences (2026)
💰 Income Tax: 🇸🇴 Somalia has a higher top income tax rate (0–30% vs 15%). 🇭🇺 Hungary is more favourable for high earners.
🛒 VAT/Sales Tax: Hungary has a higher consumption tax (10% vs 5–27%).
🏢 Corporate Tax: 🇭🇺 Hungary offers a lower corporate rate (9% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇸🇴 Somalia taxes investment gains at a lower rate (0% vs 15%), benefiting investors.