Africa · Tax guide
Djibouti
Djibouti taxes company profits at 25% and charges VAT at 10%, one of the lower VAT rates in Africa. Companies in the free zones are largely exempt, and taxes are administered by the Direction des Impôts.
At a glance
- Corporate income tax
- 25%
- VAT
- 10%
- Withholding on services abroad
- 10%
- Withholding on dividends
- 10%
Minimum tax applies
Standard rate
Paid to non-residents
Tax on investment income
Corporate income tax
Companies pay 25% on profits, subject to a minimum tax. Instalments are paid during the year and the annual return is filed after the year-end. Businesses licensed in the free zones are exempt from most direct taxes.
VAT
VAT is 10%, with returns filed monthly.
Payments abroad
Services paid to non-residents carry 10% withholding, and dividends carry 10%.
Key dates
- MonthlyVAT return
- After the year-endAnnual income tax return
Figures and sources
4 figures- Corporate income tax rate25%Under professional review
- Standard VAT rate10%Under professional review
- Withholding on services paid to non-residents10%Under professional review
- Withholding on dividends10%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Djibouti based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Djibouti (a tax adviser in Djibouti) before making compliance decisions.