About The Ministry
The Ministry of Finance and Economic Development derives its mandate from the Constitution of Somaliland, which provides for proper budgetary and expenditure management of the government financial resources. It also has a responsibility for ensuring that systems are in place for efficient monitoring and reporting of all Government's transactions.
The Inland Revenue Department of the Ministry has a number of offices distributed in all the districts of the Capital Hargeisa. And every district has a number of branches, so get sure to contact the office that is responsible of the district you are located.
The Ministry working period is from Saturday - Friday with working hours of 7:00am - 14:00pm. Unlike The customs and Inland Revenue, the customs are for 24 Hrs, and Some Inland Revenue offices that are responsible for collecting taxes are also work in the Afternoon.
The Ministry issue a tender for purchases above $5000, and chooses from at least three quotations for amounts less than the threshold.
About The Taxes
Somaliland needs to be self sufficient. We cannot depend on aid money. If we borrow money, we must pay it back. The less taxes are paid, the less services we can provide. Paying taxes is the right thing to do for our fellow citizens and country percentage of businesses that pay taxes increased from 51% (2018) to 81% (2020).
This section provides for the imposition of income tax, according to taxpayer type and type of income, rates of tax, and the methodologies for calculating chargeable income. You can review from About The Revenue Acts, chapter 2 of page 27.
If you carry on a business, you must register with the IRD, keep business records – they prove your income and help you run your business better file tax returns on time pay your taxes on time.
Making it easy to pay taxes
· New online taxpayer portal makes it easy to
· Keep your registration up to date
· complete and file returns
· Request a tax clearance
· Electronic cashier makes paying easier
· online payment coming soon
· If you haven’t registered, register online!
Taxes may be paid in either shillings or other currencies such as US dollars.
Yes, The late payment fees on unpaid tax arises when a taxpayer fails to pay tax by the scheduled due date as defined in the Act. The late payment fees on unpaid tax is deemed to be tax and section 16(5) states that the provisions of the Act relating to the collection and recovery of tax apply to the late payment fees charged under section 16 as if the fees were tax due.
You can review from About The Revenue Acts, Chapter 1, section 16 of page 15.
The corporation tax is 10%.
The payroll tax is 6%.
Yes, They have to pay 6% like the nationals.
Yes, they have to pay a 10% withholding tax.
The government uses tax revenues to provide public services. It pays the national security forces, doctors, nurses, teachers, the police etc. It also maintains and builds public infrastructure including roads, airports, water systems etc.
Taxes go to provide services to citizens, like roads, water, and security. Taxes are what we pay for civilized society. The annual budget sets out where the tax money goes.
Spending priorities include Security, Health, Education, Water security, Justice, Youth and Jobs, Attracting investment and supporting industry, Livestock, agriculture and fisheries
The new Revenue Law is mainly in the Revenue Act (No 72 of 2016)
The Revenue Act is supported by regulations made in 2017 and 2019
These are now new taxes; they are modernized taxes and are available from here the MoFD website
Payroll tax rate is 5%, plus 1% stamp tax, Business income tax rate is 10%, Rental income tax and non-resident withholding tax rates are also 10%, Goods and services tax rate is 5% of value of supply or import Small amounts of administration tax and stamp tax are also payable for the income taxes. The tax rates are among the lowest in Africa!
What is goods and services tax?
Goods and services tax (GST) replaces sales tax and is payable on a limited range of supplies of goods and services. It is payable only in respect of:
1. Goods supplied by a manufacturer-Manufacturers who make annual taxable supplies (sale, exchange or transfer of manufactured goods including goods taken for own use, or provided under a lease or hire purchase agreement) exceeding SL Sh 5m are required to pay GST on those supplies (unless they have been specifically listed as an exempt supply – see https://slmof.org/goods-services-taxes-gst/). GST does NOT apply on supplies by wholesalers or retailers.
2. Imported goods - GST on imports is collected by Customs along with import duties. Details of imported goods are NOT included on GST return Form 09.
3. Taxable services - Section 165 of the Revenue Act specifies that GST is payable on the following services:
- Electricity services;
- Telecommunications services;
- The provision of water for a fee;
- Board, lodging, and incidental services supplied in carrying on the business of a hotel or similar facility, or of meals or beverages in carrying on the business of a restaurant;
- Sale of tickets by international transport services (air, sea, and land);
- Services of a travel agency or travel arranger, including the issuing of tickets; and Sporting services or game arranger, including the issuing of tickets.
What Does Mean Fiscal Electronic Devices Management System (FEDMS)?
Electronic Fiscal Devices are main technological strategy recognized and used in many countries as necessary system to enable Tax Authority to establish trustful and
auditable traces of each invoice, formalize and improve invoicing culture, bring more taxpayers into formal sector and boost revenue as ultimate goal of the reform.
The main objectives of the Electronic Fiscal Devices system are:
- Introduction of mechanisms that provide authenticity and integrity of invoice data.
- Transmission of all invoices to central repository in Tax Authority.
- Standardization of invoice format.
- Transparency between Tax Authority and taxpayer.
What hotels are required to do?
They are required to add sales tax (5%) in to their invoice.
About The Budget
The budget for 2022 is estimated as: 3, 441,915,230,258
The budget for 2021 was 2,947,417,229,133 slsh. This is an increase of 16.78% in which the difference is estimated as: 494,498,001,125 slsh.
The priorities of the 2022 budget includes the following:
- Security Services
- Water Projects
- Health service provisions development
- Foreign affairs and international recognition
- Incentivizing local production
The Ministry of Finance Development is reporting directly to The Presidential Palace and specifically to the President.
Auditor‑General is responsible for providing information to the Parliament to assist its review of the performance of the Executive Government, particularly the Government's responsibility for the actions of the public sector entities which administer its financial management and performance management directives.
The Parliament makes laws and holds the Government to account for its policies, actions, and spending.
Parliament has four main functions: legislation (making laws), representation (acting on behalf of voters and citizens), scrutiny (examining the government), and formation of government.
There are two types of inflations domestic and foreign. This inflation has come from abroad, due to the current situations in the world, we as a government have reduced the tax on essential food items by 10%. We have stabilized the Somaliland Shilling in a reliable place, and we will continue our efforts.
About The Public Auction Announcement
At present, seized or unclaimed goods may remain in a Custom’s warehouse indefinitely, taking up space and denying revenue collection. The Customs Act 73/2016 empowers the Customs Authority to dispose of such goods - those that have either been seized, abandoned, or have exceeded stipulated time limits, by way of ‘sale’, ‘private treaty’, ‘public auction’, ‘destruction’ or ‘disposal by other means’. This document explains the conditions when goods are liable for forfeiture under the Act and the process for the disposal of the goods. For more information follow this link: https://slmof.org/wp-content/uploads/2021/06/Somaliland-Customs-Auction-Procedures-converted.pdf
First of all, we would like to thank you for your contact. Recruitments is the mandate of the Civil Servant Commission, the government agencies (MDAs) share their needs of new labor to the CSC, then the commission advertises job vacancies and screened applicants.
And there is currently no job vacancy in the Ministry of Finance, but we will share any opportunity with the Civil Servant Commission, to share with the public openly.
Thank you again for your contact, we pray to Allah for you a good job and a bright future.