Africa

Djibouti

Corporate rate
25%
Top personal rate
2%
VAT / GST rate
10%
One-sentence summary Djibouti's corporate tax position: 25% standard rate (Business Profit Tax); 3-year exemption for newly registered companies. Personal income tax: Progressive, reported ranges of roughly 2% to 30-33% depending on source. VAT/consumption tax: 10% standard VAT.

Corporate Tax Rate

25% standard rate (Business Profit Tax); 3-year exemption for newly registered companies.

Personal Tax Rate

Progressive, reported ranges of roughly 2% to 30-33% depending on source.

VAT / GST Rate

10% standard VAT.

Residency

An individual is resident for tax purposes if they have a permanent home in Djibouti, or have been present for at least 183 days in a calendar year, confirmed via two independent sources. Djibouti operates a territorial system for non-residents (taxed only on Djibouti-source income) combined with worldwide taxation for residents, who receive a foreign tax credit for taxes paid abroad.

CFC (Controlled Foreign Company) Rules: Not identified

No Controlled Foreign Company regime was identified in reliable sources this session. This is a genuine gap rather than a confirmed absence.

Thin Capitalization

No statutory thin capitalization ratio was identified in reliable sources this session.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Djibouti residents to self-report their own foreign accounts was identified. Djibouti is a member of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes and the Africa Initiative, confirmed via BRITACOM, indicating institutional participation in international tax transparency standards, though specific CRS/FATCA operational status was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Djibouti accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements.

Treaty Network

Djibouti has approximately 3 double taxation agreements, confirmed via TaxAtlas, with named partners including France, Ethiopia, and Somalia, confirmed via a separate source. Djibouti is actively negotiating additional tax treaties with several jurisdictions, confirmed via BRITACOM (of which Djibouti is a Council member) - consistent with a narrow but expanding network rather than a static one.

Sources: TaxAtlas - Djibouti Tax Rates and System (2026), 360 Nations - Djibouti Tax Guide (residency, named treaty partners), BRITACOM - Djibouti Tax Laws and Policies (international cooperation memberships, treaty negotiations). Page last verified: August 08, 2026. General information only - confirm current rates with a licensed advisor in this jurisdiction before relying on this page.