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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Ranging from DJF 50,000 to DJF 500,000 From 2016, progressive duty ranging from DJF 50,000 to DJF 500,000. Prior to 2016, 5% duty.
Payroll Tax Progressive rate up to 30% as per salary of the employees Employers are liable to withhold applicable taxes from the salaries of the employees.
Social Security Employer Contribution 15.7% Employer is required to contribute at 5.5% of the salary of employees to family allowance, 6.2% to health and professional injuries and 4% to retirement pension, provided the maximum contribution does not exceed DJF 400,000 per month.
Social Security Employee Contribution 4% Employee is required to contribute 4% of gross salary to social security.
Stamp Duty DJF 1,000 per page subject to certain exceptions Stamp duties are payable on documents, specific deeds required to be registered.
Transfer Tax 3% 3% duty on transfer of real estate (reduced from 10% effective 2017)
Property Tax (Real Property Tax) Varies depending on type of property Property tax is levied on developed and undeveloped land with certain exemptions. [U: Property tax on developed land] Developed land includes buildings, houses, factories, shops and warehouses, land used for industrial or commercial purposes, the storage of goods and all other types of commercial installations. Tax is levied at progressive rates of 10%, 18%, 25% of taxable base. [U: Property tax on undeveloped land] Undeveloped property includes plots of land, irrespective of the nature or the type of title held on the land. Land on which buildings are constructed and is exempt from the property tax on developed land is still subject to this tax during the exemption period. The tax is levied at a rate of 25%.
Custom Duty/Domestic Consumption Tax Varies depending on the type of goods Djibouti does not have a customs tariff but has an internal/ domestic consumption tax which serves a similar purpose, as domestically produced goods are generally not subject to this tax. The tax levy ranges from 0% to 33%. Djibouti is a member of the COMESA, which maintains a Common External Tariff for non-COMESA imports ranging from 0% to 25%. Apart from the COMESA Common External Tariff, specific rates are provided for certain goods. In addition, a domestic consumption tax applies to goods imported for processing or consumption within Djibouti. The tax is levied at rates of 0%, 2%, 5%, 10% and 23%, depending on the type of goods involved.
Excise Taxes Varies depending on the type of goods Excise duties are payable on certain types of goods, such as alcoholic and non-alcoholic beverages, tobacco and fuel.
Business License Tax Varies depending on type of business and location of property It is a local tax applicable to companies engaged in a trade, business or professional activities in the country. The tax includes a fixed portion specified by the tax authorities and a variable portion levied based on the rental value at varied rates depending on the business and location.
Special Business License Duty Varies depending on type of business The business license duty applies generally at a fixed rate ranging from 0.3% to 0.5% of share capital, subject to certain exceptions where different rates are applicable.
General Solidarity Tax 10% on value of goods This tax applies on the import of goods by persons without an import patent at a rate of 10% on the value of the goods. It is in addition to excise and custom duty and other levies applicable to imported goods.