Djibouti lithium battery tax exemption

What is a Djiboutian business tax exemption?

The business tax exemption applies to newly registered foreign and Djiboutian companies that fall within Classes V (DJF110,000 [$620] worth of annual business taxes) to VIII (DJF513,000 [$2900] worth of annual business taxes) for the first three years of their operation.

What taxes are imposed on a free zone in Djibouti?

For VAT purpose the entities of the free zone are subject to the provisions of the General Code taxes. Goods imported or manufactured in the free zone are exempt from all customs and tax liability, unless they are imported into the customs territory of the Republic of Djibouti.

Do companies pay tax in Djibouti?

Companies domiciled in Djibouti are subject to corporate tax on their worldwide income, whilst non- resident companies are in general subject to tax on income derived within the country. Private corporations and personal companies, as well as public companies and limited companies, pay a flat tax of 25% of annual net profit.

Are there transfer pricing rules in Djibouti?

There are no special transfer pricing rules in Djibouti . However, the tax authority is allowed to levy tax on any enterprise in Djibouti that has carried out artificial transactions or appeared to have transferred profit to a related entity located abroad.

How much is car tax in Djibouti?

The tax rate varies from DJF18,000 ($100) to DJF35,000 ($200) based on the engine power of the vehicle. Payment is due on the first day of the taxable period after the vehicle enters service in Djibouti or after the end of tax exemption.

Can Djibouti levy tax on artificial transactions?

However, the tax authority is allowed to levy tax on any enterprise in Djibouti that has carried out artificial transactions or appeared to have transferred profit to a related entity located abroad. A transaction may be considered artificial where it does not appear to have been carried out at arm’s length.