Republic of Somaliland|Ministry of Finance & Economic Development
Comprehensive overview of different tax types and rates applied in the Republic of Somaliland
Click on any tax type below to view detailed information
Tax on rental income from immovable property
Tax on goods and services provided
Tax on employee salaries and wages
Tax withheld from payments to non-residents
Tax rates for road usage and vehicles
Select a tax type to view comprehensive details, rates, and examples
Rental income tax is an annual tax payable by individuals on their rental income. "Rental income" is the total amount of rent derived by an individual during a year of income from the lease of immovable property in Somaliland with deduction only allowed for net capital losses, if any, arising from the disposal of rental assets. Corporate taxpayers are NOT required to pay rental income tax. Instead, they are required to include their rental income along with their other income in their annual income tax returns.
Any individual taxpayer or business other than corporate business, who derives income from the lease of immovable properties in Somaliland is obliged to file and pay annual rental income tax in respect of each year before 30th of April of the following year.
According to sec 57 of the Revenue Act 2016, the rental income of an individual for a year of income is charged to tax at the rate of 12.3%.
Taxpayer XY owns two residential houses in Hargeisa. House A rents for 20,000,000 SL_SH/month and House B rents for 15,000,000 SL_SH/month. Both rented for full year 2019.
Payment due: 30th April 2020
According to sec 30 of the Revenue Act 2016, failure to file on time results in penal tax equal to 2% of tax payable or one currency point per month (currently US$100), whichever is greater.
According to section 16 of the Revenue Act 2016, late payment incurs fees of 2% per month on unpaid amounts from due date until payment is made.
