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Indirect Tax

Production Tax Law No. 3 of 23 May, 1985 It is obligatory for 1. goods manufactured in the country 2. The same imported goods to be subject to the same tariff as the production tax and to collect the export tax. The tax due on domestically processed goods must be paid in the first ten days of each month and is due when the goods leave the factory premises.


The Stamp tax was issued by law L.r 6 dated 07 Dec, 1996, the Stamp tax is obligatory for all activities or activities that take place within the country such as; Papers for civil works, administrative works, court works ETC.


The Motor Vehicle Tax was enacted in Law No. 4 of 28 December 1965. This tax is applicable to

  1. Vehicles used for private purposes (Private)
  2. Private Hire Cars (Taxi)
  3. Buses
  4. Heavy Trucks

This tax is applicable to all vehicles that are driven within the country, except government vehicles, embassy vehicles, and United Nations vehicles. This tax is measured in HP (Horse Power) which is the power of the car engine.


NB. This tax is followed by 2% gratuity.

The Registration Tax was issued by Law No. 1174 of 03/07/1921 The Registration Tax is obligatory for the exchange of purchase, transfer, contracts, lease between two parties regarding movable and immovable property products while the persons exchanging things are alive. He is obligated to the government to pay taxes at a certain percentage


NO Type Percentage%
1 Invoice 3%
2 Agreements 3%
3 Projects 3%
4 Car Rental 3%
5 House Renting 3%
6 Real Estate Registration 11%
7 Registration of Lease 1%
8 New Vehicle Purchase Registration 2%
9 Rahanka 10%
10 Company's capital 5%
11 General transfer 3%
12 Car transfer 3%
13 Inheritance of the same-born, co-born and consanguineous 10%
14 Inheritance to four elders 15%
15 Inheritance of more than four Elders 20%
16 Tirtirka Rahanka 5%
17 Ownership/Same Ownership 3%
18 Renewal of Agreements 1%
19 Additional Copies 1%

Sales Tax Law No. 2 of July 1, 1984. The Sales Tax was created and mandated.


No Type Percentage%
1 Import 5%
2 Wholesale trade 5%
3 Hotel Invoice 5%
4 Industrial Products 5%
5 Telecommunication 15%
6 Banks and Express 25%
7 Water and Electricity 5%
8 Education and Health 5%
9 Supply Chain service Companies 10%
10 Other Companies 5%