If you are engaging in an industrial, commercial or liberal activity, you are subject to the payment of certain taxes listed below:
The license registration (patent)
The contribution to the license registration is due by anyone, national or foreigner, engaging in a commerce, industry or a profession not included in the exceptions indicated in the General Tax Code (GTC).
How the patent is calculated?
The patent is composed by a fixed right and a proportional right which elements of calculation are defined by the GTC.
Who is exonerated?
The companies benefiting from the Investment Code privileges are exonerated of the commercial patent but are still subject to the import patent.
THE LICENSE
All moral or physical persons who has obtained prior administrative authorization to run trade of alcoholic beverages, including officers mess, clubs, community and association which sell those beverages exclusively to their members, is hence subject to a special contribution called ‘’license’’ Art. 11.71.01 GTC.
How the license is calculated?
The tariffs of licenses are calculated based on the nature of the operations performed and the location where the trade is ran.
Income and Salary Tax (IST)
Any individual who is receiving a salary against a professional activity performed under the authority and direction of another physical, moral, public or private person is expected to the payment of a salary and income tax. (Art. 17.22.01) GTC.
The income and salary tax is subject to deduction withheld by the employer.
How the income and salary tax is determined?
The IST is calculated on the basis of a salary scale with a progressive rate established by the GTC.
Who is exonerated?
Monthly salaries under 25.000 DJF , specific allowances and reimbursement of real professional fees.
Tax on professional profits
The tax of the professional benefits (profits) is established on the profits made by physical or moral persons running a commercial, industrial, handicraft or liberal profession excepted those which are exonerated.
How is the tax determined?
The tax equals 25% of the net profit.
Who is exonerated?
The companies which are benefiting from the Investment Code are exonerated of this tax as well as the net profits under 600.000 DJF, income from property and income from assets.
The minimum flat tax (MFT)
The MFT is due by physical and moral persons running a handicraft, commercial, industrial or other liberal profession. It is a tax on the CA realised on the national territory. It is not deductible from the taxable profit.
The MFT is due on the hypothesis of deficit result. The MFT equals 1% of the CA. The companies benefiting from the Investment code are subject to this tax.
The tax on earnings paid to physical or moral persons not residing in Djibouti by a debtor established in Djibouti
It is a tax perceived by the means of a withholding at the source on the earnings paid to physical or moral persons not residing in Djibouti
The taxable earnings are the sums paid against services rendered and those perceived on the author rights and products of industrial, commercial property or similar activities.
However to calculate it?
The tax equals 10% of the gross amount of the earnings paid.
The tax on services
The sector of hotels and telecommunication are solely subject to the payment of tax on services (Art. 18.12.01 GTC). The tax is to be paid spontaneously every month.
How is it calculated?
The tax equals 5% of the tax base for hotel activity and to 7% of telecommunication activity.
The tax base equals the total of all the sums and advantages received and if also applicable to the value of the goods incorporated in the delivery of the service.
What forms are to be used for the declaration of these various taxes?
The declaration of the IST
The declaration of taxes on profits
The declaration of advantages in kind
The declaration on the withholding tax
The declarations of the patent