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The country is under sanctions by the United Nation’s Security Council and/or the UK Government. Currently B2B Hub is not providing legal and financial services for the present country.

Somalia

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About

Somalia

Capital
Official languages
Population 
Currency

ISO 4217

Mogadishu

Somali and Arabic

15,891,325 (as of 2019)

Somali Shilling

SOS

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Economy

"Somalia's economy has been in a state of decline for many years, with the World Bank estimating that the country's GDP per capita was only $400 in 2018. This is a stark contrast to the GDP per capita of $1,000 in 2010. The country's unemployment rate is also high, with the World Bank estimating it to be at around 20%. Inflation is also a major issue, with the International Monetary Fund estimating it to be at around 10.5% in 2019. The country's public debt is also high, with the World Bank estimating it to be at around 70% of GDP in 2018.

Somalia's economy is heavily reliant on agriculture, with the sector accounting for around 65% of the country's GDP. The sector is also the main source of employment, with the World Bank estimating that it employs around 70% of the country's labor force. The country also has a large informal sector, which accounts for around 40% of the country's GDP.

Somalia's economy is also heavily reliant on foreign aid, with the World Bank estimating that it accounts for around 40% of the country's GDP. The country also receives remittances from abroad, with the World Bank estimating that it accounts for around 10% of the country's GDP.

Overall, Somalia's economy is in a state of decline, with high levels of unemployment, inflation, and public debt. The country is heavily reliant on agriculture and foreign aid, and has a large informal sector."

Taxation

Somalia is a country located in East Africa and its taxation system is still developing, with different regions having varying tax policies and practices.


Corporate taxation in Somalia is not well-established and there is no uniform tax rate for all regions. In some areas, there may be taxes on businesses, but they are often ad hoc and subject to change. Some regions may also have taxes on imports and exports, and there are fees for business licenses and permits. The lack of a consistent tax system can create uncertainty for businesses operating in Somalia.


Personal taxation in Somalia is also not well-established and is largely based on informal arrangements. There are no formal income tax laws, but some regions may have informal taxes on income earned from certain activities, such as trade or agriculture. In addition, there may be taxes on property and other assets.


The tax payment process in Somalia is largely informal and can vary widely depending on the region. There is no centralized tax collection system and taxes are often collected at the local level by authorities such as clan elders or local administrators. There is no formal tax calendar and payment deadlines are often determined by local authorities.


It's important to note that Somalia has experienced ongoing conflict and instability, which has made it difficult to establish a consistent and effective tax system. The lack of a formal taxation system can also make it challenging for the government to fund essential services and infrastructure. Despite these challenges, there are ongoing efforts to establish more formal tax policies and practices in Somalia, with support from international organizations and donor countries.

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