Skip to main content

Direct Tax

Corporate Income Tax (CIT) was enacted under Income Tax Law No. 37 in 2025. This tax is levied on business profits once a year across sectors such as General Business, Industrial, Agriculture, Provisions, Seasonal Business, Services, etc. Tax rates are applied based on business classification as follows:

NB. This Tax is Payable Annually

Business Type Tax Rate
Small Business (Sales < USD 10,000) $150 (Flat rate)
Medium Business (Sales USD 10,000 – 50,000) 1.5% of turnover (sales)
Large Business (Sales > USD 50,000) 15% of profit
Non-resident Companies 18% (Flat rate)
House Income Tax was issued by Law No. 5, 1966. This tax is imposed on anyone who receives profit from House or House and it will be assessed according to the income of a specified percentage.
NB. This tax is paid every three months

 

No Income Percentage%
1 $500 - $ 20,000 15%
2 $20,010 and More 22.5%

The Payroll Income Tax was enacted under Income Tax Law No. 37 of 2025 (based on Article 90). This tax is obligatory for anyone who receives income from employment within the country, such as salary, bonuses, and allowances, and is assessed according to the monthly income at specified progressive percentages.

Who pays: Self-employed individuals, sole proprietors, and employees (tax withheld monthly by the employer).

NB. This tax is payable monthly.

Monthly Income Tax Rate (%) Monthly Calculation
$0 – $100 0% $0
$100 – $500 6% 6% of the amount exceeding USD 100
$500 – $1,500 12% USD 24 + 12% of the amount exceeding USD 500
Above $1,500 18% USD 144 + 18% of the amount exceeding USD 1,500