Tax
From The Report: Djibouti 2023
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Tax policies in Djibouti provide certain benefits and incentives to specific sectors through general exemptions. For instance, there are no time restrictions on carrying out remittances, facilitating ease of financial transactions. The requirements for registering a business have been streamlined, reducing the capital needed to start a company, thereby encouraging entrepreneurship and business growth. In terms of income tax, Djibouti follows a progressive system that applies to both local residents and foreigners, ensuring a fair and equitable taxation structure. These tax measures contribute to a favourable business environment, promoting economic activity and attracting investment in Djibouti. This chapter includes a viewpoint with Ramiss Houmed, Managing Partner and Owner, HLB Djibouti.

Articles from this Chapter

Overview

Facilitating investment: The tax code includes benefits for both local and foreign entities
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Among Djibouti’s economic advantages is its strategic position at the southern entrance to the Red Sea, making the country a bridge between Africa and the Middle East. Located near some of the world’s busiest shipping lanes, Djibouti is home to US, Chinese, French, Japanese and NATO military bases supporting regional anti-piracy efforts, among other purposes. The economy is oriented around one of the world’s most modern port complexes, and additional economic activity is derived from submarine…

Viewpoint

At the crossroads: Ramiss Houmed, Managing Partner, HLB Djibouti, on the private sector as an essential lever in regional ambitions
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Viewpoint:Ramiss Houmed Djibouti has long served as a model of stability among its regional neighbours. However, from a macroeconomic perspective the country is grappling with several challenges. These include the impact of the Covid-19 pandemic, persistent inflation and the ongoing conflict in Ethiopia, which supplies key goods such as vegetables, drinking water and electricity; and accounts for 80% of Djibouti’s exports through its ports. To realise Djibouti’s ambition of becoming a regional…