Tax Exemptions

In Accordance     with     Tariff   Law,     the       Following         Goods  and Services Shall be Exempted from Import Duties in Somaliland: 

  1. All Diplomatic (Red Passport) and UN(Blue Passports;
  2. All Factories shall give Tax exemption for the beginning;
  3. Shall give all Factories Tax Exemption for the Raw material the First three Years;
  4. Objectives belonging to foreign sovereigns of Heads of State who come to stay in Somaliland on the basis of reciprocity;
  5. Objects and motor vehicles belonging to diplomatic and consular agents accredited to the Somaliland Republic, and objects necessary for the initial establishment of Diplomatic and consular office;
  6. Objects and motor vehicles belonging to the representative, officials and experts of the United Nations Organizations, its specialized Agencies and other International Organizations in according with agreements ratified by Law;
  7. Personal belongings, furniture, radio receivers, sound recorders, cameras, Projectors, firearms, typewriters, sewing machines, household items and ’
  8. Traveler’s personal belongings, firearms, cinematographic cameras, portable furnishing, typewriters and ;
  1. Clothes, used theatrical props and operatic scores which actors, singers bring with them, entertainers used instruments and performing animals for public;
  2. Objects used in religious worship which are sent to religious missions and communities in the Republic;
  3. Publications and other objects donated directly to Cultural Institutes and Orgs;
  4. Samples of Goods provided they are not directly utilizable;
  5. Stamps and stamped paper banknotes and other instruments of credit;
  6. Goods imported directly by the Government or purchased after their arrival but before they are cleared through customs;
  7. Materials required for Organizations of Desert Locust Survey, for use in the Anti-Locust Campaign and for the Malaria Eradication Campaigns;
  8. Gifts and Aid in Kind to Populations struck by public Disasters;
  9. Artificial Limbs and invalid wheel chairs;
  10. Materials to be used exclusively by the blind, imported by Organizations for assistance to or re-education of the blind, or institutions attached to them;
  11. Machinery parts thereof and shipbuilding materials for ships sailing under any flaps;
  12. Selected Domestic animals, male and female for breeding and domestic animals to be used in agriculture;
  13. Live trees and other plans, slips, cutting, tubers, selected seeds for fields and kitchen garden crops, fertilizers and parasitic-ides to be used exclusively for Agriculture;
  14. Professional fishing equipment but not equipment for fishing as a sport;
  15. Coffins and urns containing remains of deceased persons transported to Somaliland and ornaments therefore. Exemption shall be granted by the Customs Authority on submission of an authorization by the relevant Authorities;
  16. Wreaths and Ornaments for Graves in Somaliland;
  17. Goods of proven Somaliland Origin. Such exemption shall be granted to the owners of the goods on behalf of whom the export was effected;
  18. Postal Parcels up to a value of Sh.SL. 250,000/-

Documents Needed for Tax Exemptions. 

  1. Bill of lading, Airway Bill and Consignment Note;
  2. Letter of Credit (If Possible);
  3. Invoices;
  4. Insurance Letter;
  5. Packing List;
  6. Request Letter from Line Ministry;
  7. Valid License or Registration Certificate;
  8. Special Permit for Restricted Goods;
  9. Special Agreements with Somaliland Government.

SOURCE: Ministry of Finance Development http://slmof.org/tax-exemptions/

In addition to the above,

What incentives for the Somaliland Diaspora? 

Although apart from general exceptions of goods tax on particular conditions specified in the Somaliland Customs and Commercial Laws and per the terms specified above, no other incentives to the Diaspora is not on especial arrangement made official yet. However, the Somaliland Diaspora community enjoys dual citizenship and equal participation of all opportunities as well as all exemptions and incentives that are pertinent to them according to the respective rules and regulations.

The Somaliland Diaspora Office (SLDO) currently refers those members from the Diaspora with acceptable proposals for tax exemptions or other incentives such as plots of land for investment project etc after making verification to the applicant and his/her proposal’s certainty and its relevance to the respective regulations.

In accordance with MoFA&IC Diaspora Engagement Initiative and Diaspora Return Incentive Program (DIARI), the Diaspora Office in cooperation with  key line ministries and other government bodies is working to formalize certain incentives to the Somaliland Diaspora in certain areas relating to trade & investment, land for commercial & residential purposes, moving out with old vehicles from abroad, humanitarian development aid and other areas which are number one priority intervention for SLDO’s strategic plan within 2017-2021 as aligned with Somaliland NDP II (2017-2021) in order to ensure friendly business environment and further engagement of the Somaliland Diaspora and address identified challenges.

In accordance with the Presidential Decree No JSL/XM/WM/222-186/082018, the Somaliland President H.E. Muse Behi Abdi suspends tax exemptions to business companies and the foreigners and the circular states specific conditions under which the concerned Somaliland Public Institutions (MDAs) can only provide tax exemptions in Somaliland Click here to read the Presidential Decree under this Link