The Federal Republic of Somalia (Somalia for short) is located in the Somali Peninsula, the easternmost part of the African continent, with the longest coastline on the African continent. It is bounded by the Gulf of Aden to the north, the Indian Ocean to the east, Kenya and Ethiopia to the west, and Djibouti to the northwest. The vast majority of the population are Somali ethnic groups. It has Mogadishu as the capital, Somali and Arabic as official languages, and English and Italian also commonly used. Agriculture is the most important sector of the economy.

The Somalia Revenue Directorate (SRD) is the government agency responsible for the administration and collection of taxes in Somalia. SRD’s functions include administering and enforcing tax laws and regulations, collecting taxes and other revenue due to the government, providing taxpayer education and assistance to promote voluntary compliance, conducting audits and investigations to ensure tax compliance and deter tax evasion, developing and implementing tax policies and strategies to enhance revenue collection and collaborating with other government agencies and international partners to combat tax fraud and evasion. The SRD is composed of the Office of the Director General, the Customs Department and the Inland Revenue Department. The Office of the Director General guides and directs the two departments to ensure the consolidation of activities and provides the annual work plan. The Customs Department is responsible for the collection of taxes and duties related to import and export and the Inland Revenue Department is charged with domestic tax administration.

Somali tax system comprises direct taxes on both individual and corporates, and indirect taxes such as tax on goods and services and excise tax. In addition, Somalia also imposes a number of other taxes and duties such as stamp tax, road tax, motor vehicle tax and registration tax, etc.

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