East & Southern Africa
Djibouti: tax at a glance
A 25% corporate rate with territorial features, a currency board pegged to the US dollar, and free zones built around one of the busiest ports on the Red Sea.
Territorial
Last verified July 2026Some figures indicative
The taxes
- Personal income (top)
- 30%
- Corporate income
- 25%
- Capital gains
- Included in ordinary income.
- VAT
- 10%
- Dividends (WHT)
- 10%
- Interest (WHT)
- 10%
- Royalties (WHT)
- 10%
- Social security (employee)
- 4%
- Social security (employer)
- 15.7%
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Property tax applies on built property.
- Other
- The franc is pegged to the US dollar under a currency board. Free zone entities receive extended tax exemptions.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Djibouti free zones: multi-year corporate tax exemption and duty relief for qualifying entities
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Djibouti?
The top marginal personal income tax rate in Djibouti is 30%. Progressive bands rising to 30% on salary income.
What is the corporate tax rate in Djibouti?
The headline corporate income tax rate is 25%.
Does Djibouti tax capital gains?
Capital gains for individuals: Included in ordinary income..