Learning Objectives
|
Institute of Certified Public Accountants of Somaliland
Professional Orientation Guide
Corporate & Business Law · Taxation
|
CPA Somaliland Membership Orientation · Section 13
Quick Reference - Tax Rates & Key Dates
13. QUICK REFERENCE - TAX RATES & KEY DATES
Domestic Tax Rate Summary
| Tax | Base | Tax % | Admin % | Stamp % | Effective % |
|---|---|---|---|---|---|
| Payroll (PAYE) | Gross employment income | 5% | - | 1% | 6% |
| Rental Income (Individual) | Gross rental income | 10% | 2% | 2.5% of (tax+admin) | ~12.3% |
| Business Income | Chargeable income | 10% | 2% | 2.5% of (tax+admin) | ~12.3% |
| GST | Taxable consideration | 5% | - | - | 5% |
| Withholding (non-resident) | Gross international payment | 10% | 2% | 2.5% | ~12.3% |
| Excise (tobacco) | Value of tobacco products | 50% | - | - | 50% |
Key Filing Dates Summary
| Tax / Obligation | Due Date |
|---|---|
| Business Income Tax return (Dec year-end) | 30 April |
| Individual Rental Income Tax | 30 April |
| Payroll Tax (PAYE) - monthly remittance | 15th of following month |
| GST return and payment | 21st of following month |
| Provisional Tax - Corporate (instalment 1) | 30 June |
| Provisional Tax - Corporate (instalment 2) | 31 December |
| Provisional Tax - Individual (quarterly) | 31 Mar / 30 Jun / 30 Sep / 31 Dec |
| Objection to assessment | Within 30 days of notice |
| Penalty interest on overdue tax | 2% per month from due date |
| Record retention minimum period | 5 years from end of year of income |
Capital Allowance - Initial & Annual Rate Summary
| Category | Initial Allowance | Annual Rate & Method |
|---|---|---|
| Eligible plant & machinery - Hargeisa | 50% of cost (yr 1 only) | Reducing balance on remaining WDV |
| Eligible plant & machinery - Outside Hargeisa | 75% of cost (yr 1 only) | Reducing balance on remaining WDV |
| Computers & data handling (Class 1) | 50%/75% if eligible | 40% reducing balance |
| Vehicles, construction (Class 2) | None (transport vehicles excluded) | 35% reducing balance |
| Buses ≥30 seats; heavy goods; farm/mining plant (Class 3) | 50%/75% if eligible plant | 30% reducing balance |
| Office furniture; aircraft; vessels; other (Class 4) | 50%/75% if eligible | 20% reducing balance |
| Industrial Buildings - Annual | N/A | 5% straight-line |
| Industrial Buildings - Initial | 20% of qualifying cost | Applied in year building first in use |
| Small equipment (< $5,000) | 100% immediate deduction | No capital allowance applies |
| REMINDER | Transport vehicles (goods vehicles, buses, passenger cars) DO NOT qualify for the initial allowance - only for annual allowances. |
ICPAS Professional Orientation Guide · For IFAC Qualified Accountants Applying for Direct Admission to CPA Somaliland Membership · 2026 Edition
|
|
Institute of Certified Public Accountants of Somaliland
Professional Orientation Guide
Corporate & Business Law · Taxation
|
CPA Somaliland Membership Orientation · Section 13
Quick Reference - Tax Rates & Key Dates
13. QUICK REFERENCE - TAX RATES & KEY DATES
Domestic Tax Rate Summary
| Tax | Base | Tax % | Admin % | Stamp % | Effective % |
|---|---|---|---|---|---|
| Payroll (PAYE) | Gross employment income | 5% | - | 1% | 6% |
| Rental Income (Individual) | Gross rental income | 10% | 2% | 2.5% of (tax+admin) | ~12.3% |
| Business Income | Chargeable income | 10% | 2% | 2.5% of (tax+admin) | ~12.3% |
| GST | Taxable consideration | 5% | - | - | 5% |
| Withholding (non-resident) | Gross international payment | 10% | 2% | 2.5% | ~12.3% |
| Excise (tobacco) | Value of tobacco products | 50% | - | - | 50% |
Key Filing Dates Summary
| Tax / Obligation | Due Date |
|---|---|
| Business Income Tax return (Dec year-end) | 30 April |
| Individual Rental Income Tax | 30 April |
| Payroll Tax (PAYE) - monthly remittance | 15th of following month |
| GST return and payment | 21st of following month |
| Provisional Tax - Corporate (instalment 1) | 30 June |
| Provisional Tax - Corporate (instalment 2) | 31 December |
| Provisional Tax - Individual (quarterly) | 31 Mar / 30 Jun / 30 Sep / 31 Dec |
| Objection to assessment | Within 30 days of notice |
| Penalty interest on overdue tax | 2% per month from due date |
| Record retention minimum period | 5 years from end of year of income |
Capital Allowance - Initial & Annual Rate Summary
| Category | Initial Allowance | Annual Rate & Method |
|---|---|---|
| Eligible plant & machinery - Hargeisa | 50% of cost (yr 1 only) | Reducing balance on remaining WDV |
| Eligible plant & machinery - Outside Hargeisa | 75% of cost (yr 1 only) | Reducing balance on remaining WDV |
| Computers & data handling (Class 1) | 50%/75% if eligible | 40% reducing balance |
| Vehicles, construction (Class 2) | None (transport vehicles excluded) | 35% reducing balance |
| Buses ≥30 seats; heavy goods; farm/mining plant (Class 3) | 50%/75% if eligible plant | 30% reducing balance |
| Office furniture; aircraft; vessels; other (Class 4) | 50%/75% if eligible | 20% reducing balance |
| Industrial Buildings - Annual | N/A | 5% straight-line |
| Industrial Buildings - Initial | 20% of qualifying cost | Applied in year building first in use |
| Small equipment (< $5,000) | 100% immediate deduction | No capital allowance applies |
| REMINDER | Transport vehicles (goods vehicles, buses, passenger cars) DO NOT qualify for the initial allowance - only for annual allowances. |
ICPAS Professional Orientation Guide · For IFAC Qualified Accountants Applying for Direct Admission to CPA Somaliland Membership · 2026 Edition
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