Africa

Western Sahara (SADR)

Corporate rate
35%*
Top personal rate
38%*
VAT / GST rate
20%*
One-sentence summary Western Sahara is a disputed territory with no independent tax system: the majority under Moroccan administration follows Moroccan tax law, while the Polisario Front's Sahrawi Arab Democratic Republic (SADR), recognized by a shrinking number of states and an African Union member, controls a small 'Free Zone' with no documented functioning fiscal apparatus of its own.

Political and Economic Status

Western Sahara is a former Spanish colony whose sovereignty is contested between the Kingdom of Morocco, which administers roughly 75-80% of the territory (the area west of the Moroccan Wall), and the Polisario Front's Sahrawi Arab Democratic Republic (SADR), which controls the remaining 'Free Zone' along the Algerian and Mauritanian borders. The SADR has been recognized as independent by around 80 states at various points, though several have since withdrawn or suspended recognition; it remains an African Union member.

Corporate Tax Rate

Not applicable as a standalone system. In Moroccan-administered areas, Morocco's own tax code applies - see the Global Tax Guide's Morocco page for the current 35% headline corporate rate. In the SADR-controlled Free Zone, no documented, functioning independent corporate tax administration was identified.

Personal Tax Rate

Same structure as corporate tax: Moroccan personal income tax law applies in Moroccan-administered areas; no independent SADR personal tax system was identified.

VAT / GST Rate

Same structure: Moroccan VAT applies in Moroccan-administered areas (with EU-Morocco tariff preference agreements extending to goods originating from the territory); no independent SADR VAT system was identified.

Residency

Because Western Sahara has no independent, internationally administered tax system, "residency" as a tax concept does not meaningfully apply to the territory as a standalone jurisdiction. In the majority of the territory under Moroccan administration, Moroccan tax residency rules and rates apply directly (see the asterisked rates above, reflecting Morocco's own corporate, personal, and VAT rates as confirmed via OECD Corporate Tax Statistics 2026). In the much smaller Polisario Front-controlled "Free Zone," no documented functioning fiscal apparatus exists.

CFC (Controlled Foreign Company) Rules: Not applicable

Not applicable in the Moroccan-administered majority of the territory beyond whatever CFC rules (if any) apply under Moroccan law generally - a question of Moroccan tax law rather than a distinct Western Sahara rule. Not applicable in the SADR-controlled Free Zone given the absence of any documented fiscal apparatus there.

Thin Capitalization

Same structure as CFC above: governed by Moroccan law in the Moroccan-administered area; not applicable in the Free Zone.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent specific to Western Sahara was identified, consistent with the territory having no independent fiscal apparatus of its own. Separately and independently of any local rule, US citizens and Green Card holders with any Western Sahara-connected financial accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of the territory's disputed status.

Treaty Network

Not applicable as a standalone matter. The Moroccan-administered majority of the territory would fall under Morocco's own treaty network as a practical matter of administration, though Western Sahara's disputed sovereignty status means this is not equivalent to Western Sahara itself having treaty relationships. The SADR is recognized by a shrinking number of states and is an African Union member, but has no documented tax treaty network of its own.

Sources: Law Gratis - Tax laws Western Sahara, Britannica - Sahrawi Arab Democratic Republic, tralac - Sahrawi Arab Democratic Republic economic overview. Page last verified: August 08, 2026. General information only - figures marked unverified are intentionally omitted rather than estimated.