Somalia vs Yemen
Tax Rate Comparison
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π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
πΈπ΄ 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.
πΎπͺ Yemen β Yemen Tax System
Yemen's tax system has fragmented amid civil war (since 2015) between the Houthi movement (controlling Sanaa and the north) and the internationally recognised government (IRG, based in Aden). Each side collects taxes in their territory. Income tax nominally up to 15%. The conflict has caused one of the world's worst humanitarian crises. Oil and gas revenues (historically 70% of state income) have mostly stopped due to pipeline attacks and production collapse.
Somalia vs Yemen: Key Tax Differences (2026)
π° Income Tax: πΈπ΄ Somalia has a higher top income tax rate (0β30% vs 0β15%). πΎπͺ Yemen is more favourable for high earners.
π VAT/Sales Tax: Somalia has a higher consumption tax (10% vs 5%).
π’ Corporate Tax: πΎπͺ Yemen offers a lower corporate rate (20% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ΄ Somalia taxes investment gains at a lower rate (0% vs 15%), benefiting investors.