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!
About The Budget
The budget for 2021 is estimated as: 2,881,916,764,333 SL.SH
The budget for 2020 was 2,749,983,223,798 slsh. This is an increase of 4.8% in which the difference is estimated as: 131,933,540,535 slsh
The priorities of the budget of 2021 are as the following:
- Water, Sanitation and Health
- Youth Development and Job Creation
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.