20% flat standard rate (35% for telecoms, 50% for petroleum sector production-sharing income); civil conflict has significantly disrupted formal enforcement and split governance affects administration.
Progressive 10% to 15% (some sources cite up to 20%) under Income Tax Law 17/2010, with an annual exemption of YER 120,000.
5% General Sales Tax.
Confirmed via Income Tax Law No. 17 of 2010: an individual is tax resident in Yemen if (a) maintaining a residence in Yemen, or (b) physically present 183 days or more, confirmed via a specialist tax source. Residents are taxed on worldwide income. A corporation is resident if registered under Yemen's company regulations, headquartered in Yemen, has its place of business or management in Yemen, is an economic sector unit with 50% or more state ownership, or is a concession company operating in Yemen, confirmed via Moore Global's Yemen tax guide.
Yemen's tax legislation does include anti-avoidance provisions covering transfer pricing, thin capitalization, and Controlled Foreign Company rules, confirmed via a PKF International-sourced tax guide - a notable finding given many jurisdictions at a comparable level of tax-system development do not have CFC rules at all. Specific attribution thresholds and mechanics were not further itemized in sources reviewed this session.
A thin capitalization rule exists as part of Yemen's broader anti-avoidance framework under Income Tax Law No. 17 of 2010, confirmed via the same PKF-sourced guide, though the specific debt-to-equity ratio or mechanism was not itemized in sources reviewed this session.
No domestic FBAR/Form 8938-equivalent requiring Yemen residents to self-report their own foreign accounts was identified. Exchange controls do exist - the central bank may restrict foreign exchange transactions judged to significantly impact national currency reserves, confirmed via a specialist tax source. Institutional-level CRS/FATCA participation is significantly constrained by Yemen's ongoing conflict and parallel-administration situation (Houthi-controlled areas versus the internationally-recognized government). Separately and independently of Yemeni law, US citizens and Green Card holders with any Yemen-connected financial accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938 - though current US and UN sanctions frameworks targeting Houthi-controlled entities and individuals independently and significantly constrain permissible US-person financial dealings connected to Yemen, a separate and more immediately consequential legal constraint than the tax filing question itself.
Yemen has approximately 6 active double tax treaties, confirmed via a specialist tax source, including with Ethiopia, Iran, Pakistan, and Turkey, plus arrangements with several other Arab countries per a separate PKF-sourced compilation. Yemen has not signed the OECD's Multilateral Convention (MLI). This is a genuinely narrow network, and the ongoing conflict and parallel-administration situation may affect the practical operation of some treaty relationships independent of their formal legal status.