Tax
Income tax and sales tax demanded by two rival administrations
The Income Tax Law of 2010 and the General Sales Tax Law remain in force, but both the Sanaa and Aden authorities levy tax in the areas they control.
Key rules
- Jurisdiction — Tax Authority, operating separately under each administration. Objections nominally go to tax committees and the courts.
- Deadline — 120 days after year end to file the annual income tax return under the 2010 law
- Deadline — Monthly sales tax returns
Governing law
- Income Tax Law, Law 17 of 2010
- General Sales Tax Law, Law 19 of 2001
- Customs Law 14 of 1990
In practice
The statutory framework provides for corporate income tax at twenty per cent, personal income tax on a progressive scale and a general sales tax of five per cent. What matters in practice is that two administrations collect, sometimes on the same tax base, and that customs revenue at the ports of Aden and Hodeidah is collected by whichever authority holds the port. Dual taxation of the same activity is a documented reality rather than a theoretical risk. This entry is research for that reason.