The Somali Customs Department is under the Ministry of Finance and is responsible for collecting import duty, import sales tax, export duty, import excise, and other taxes. Since the department has several staff at the entry points, it serves as the first control point for all import-related issues. It ensures that importers pay relevant taxes for only consignments permitted to enter the country. It also seeks to ensure that there is no smuggling of untaxed goods or prohibited items. Customs conducts physical examinations (including x-rays) of consignments but also conducts routine sampling and analysis.
Additionally, customs officers physically patrol the borders and other strategic points, examine goods, search premises, and inspect documents relating to imported and exported goods. In addition to these functions, Customs enforces laws on import and export restrictions and prohibitions. More details can be found at The Customs Department website.
The recently launched Somali Customs Automated System (SOMCAS) mandates that importers use the system to declare goods and tax payments. The Customs Department implements national and bilateral customs regulations as it enforces trade agreement and preferential tariffs signed by Somalia with other countries. Specific tax exemptions for products from certain countries that have favorable trade terms are possible. However, the necessary approvals must be received prior to importation.
In addition to import duty taxes, Somalia requires investors to pay additional taxes to federal and state governments. These taxes include employee, income, rental, withholding, and corporate taxes, among others. The highest tax bracket is 18 percent for salaries above $1,500. The Corporate Income Tax (CIT) or Company Tax is payable to the Federal Government of Somalia, and the rate is at 30 percent for figures above $30,000 annually, while rental income tax is at 22.5 percent for monthly rent above $20,000. Other town council taxes may apply and vary according to state jurisdiction.
Though tax harmonization is in process, federal member state currently effectuates its own customs regulations, and state members collect import taxes.
Information Resources
Customs - Revenue Directorate
Ministry of Finance
Corso Somalia Street
Shangaani District - Mogadishu, Somalia