Income tax rate in Djibouti 2022! Are you looking for the most recent information about Djibouti’s income tax rate? Do you need the tax table for both residents and non-residents? Do you want to know about the salary and wage tax? Then look no further; you’ve arrived at the right place.
In this post, you will learn about the Djibouti income tax rate, the Djibouti corporation tax rate, the Djibouti sale tax rate, and much more.
Djibouti has a progressive income tax rate that runs from 2 to 30 percent depending on the individual’s income. Regardless, employees are obligated to contribute 4% of their monthly salaries to social security.
The employer deducts the tax at the source. Income of less than DJF 50,000 ($280) is tax-free. Employers are required to contribute 4% of their revenue to social security, 6.2 percent of their monthly salaries to disability insurance, and 5.5 percent of their monthly wages to family allowances.
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Income tax rate in Djibouti 2022
Every year, new tax tables are published for resident and non-resident taxpayers in Djibouti, updating the income tax rates and personal allowances there. The tax rates, thresholds, and allowances included in the Djibouti Tax Calculator 2022 are listed in the tables below.
Djibouti Residents Income Tax Tables in 2022: Income Tax Rates and Thresholds (Annual)
| Tax Rate | Taxable Income Threshold |
| 2% | Income from ₣0.00 to ₣360,000.00 |
| 15% | Income from ₣360,000.01 to ₣500,000.00 |
| 18% | Income from ₣500,000.01 to ₣1,800,000.00 |
| 20% | Income from ₣1,800,000.01 to ₣7,200,000.00 |
| 30% | Income from ₣7,200,000.01 and above |
Djibouti Non-Residents Income Tax Tables in 2022: Income Tax Rates and Thresholds (Annual)
| Tax Rate | Taxable Income Threshold |
| 2% | Income from ₣0.00 to ₣360,000.00 |
| 15% | Income from ₣360,000.01 to ₣500,000.00 |
| 18% | Income from ₣500,000.01 to ₣1,800,000.00 |
| 20% | Income from ₣1,800,000.01 to ₣7,200,000.00 |
| 30% | Income from ₣7,200,000.01 and above |
The Djiboutian government routinely reviews and updates its laws regarding taxes, including personal income tax, costs, and exemptions. Although not all tax rates and thresholds in Djibouti vary on an annual basis, changes to tax policy to assist strategic economic growth in Djibouti may focus on select areas to offer targeted tax relief or support growth in particular areas (overseas investment in Djibouti for example may mean reduced non-resident income tax rates in Djibouti for a period).
The resulting tax tables vary whenever Djibouti’s tax policy does. Tax tables in Djibouti are just a list of the applicable tax rates, fixed sums, and/or thresholds used in the computation of tax in Djibouti. The Djibouti tax tables also contain specific notes and guidance on the validity of scenarios (for example, qualifying criteria for specific tax relief / allowances), and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Djibouti for example).
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Total tax rate in Djibouti
As of 2019, Djibouti’s total tax rate (as a percentage of commercial earnings) was 37.90. Its peak point during the last 14 years was 38.10 in 2012, while its low point was 37.60 in 2013.
The total tax rate is the amount of taxes and required contributions paid by businesses after deducting permissible deductions and exemptions, expressed as a percentage of commercial earnings. Excluded are taxes withheld (such as personal income tax) or collected and sent to tax authorities (such as value added taxes, sales taxes, or goods and services taxes).
Sale tax rate in Djibouti
The sales tax rate in Djibouti is a tax levied on customers depending on the purchase price of specific products and services. The benchmark for the sales tax rate that we employ relates to the highest rate. Revenues from the Sales Tax Rate are a significant source of revenue for the Djiboutian government.
Does Djibouti have VAT?
VAT was implemented in Djibouti in 2009 and applies to all operations that take place in Djibouti and are carried out by physical and/or legal persons, excluding those designated by law. Except for workers, VAT applies to anybody who engages in any economic activity.
Djibouti corporate tax
Djibouti corporation tax rate is the percentage of company profits that must be paid in taxes by Djiboutian businesses. The corporate tax in Djibouti is 25%
Tax on Salaries & Wages
This tax applies to all compensation given to natural persons for professional work done at the behest or instruction of another natural or legal person, whether public or private. The tax may not apply to all income. The value of benefits in kind must be considered when calculating the tax. Benefits in kind are taken into account based on actual spending or predetermined packages determined by the GTC. The employer withholds the tax at the source, and must remit it no later than the 15th of the following month.
A rate of 2 to 30 percent of taxable income is the established tax rate. Less than DJF50,000 ($280) in taxable income is exempt from this tax.
Djibouti uses a progressive income tax rate that ranges from 2–30 % depending on the income of the individual. This notwithstanding, employees are required to contribute 4% of their wages to social security every month. The tax is deducted at the source by the employer. An income of less than DJF 50,000 ($280) is exempt from tax. Employers are obligated to pay 4% of the income to social security followed by 6.2% of monthly wages to disability insurance and 5.5% of monthly wages to family allowances.
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