Presentation of Yemen : Taxation

Sales Tax

5% (standard rate), 10% for telecommunications and GSM services.

Company Tax :

Standard corporate tax: 20%
Mobile phone service providers: 50%
International telecom services providers, oil, gas, and minerals entities, cigarette manufacturers and importers: 35%
Concession companies engaged in the exploitation of oil and gas: 3% on expenditure incurred during the exploration phase
Investment projects registered under the investment law: 15%
Small firms (i.e. those whose annual turnover is more than YER 1.5 million but less than
YER 20 million and that have between three and nine employees): Rates ranging from 5% to 20%, according to the type of activities.
Micro-entities (i.e. resident entities with annual turnover of less than YER 1.5 million and that have fewer than three employees): Exempt from taxation

Withholding Taxes :

Dividends: 0%/10% (non-resident companies); Interests: 0%/10% (non-resident companies); Royalties: 0 (residents)/10% (non-residents).

Social Security Contributions Paid By Employers :

9%

Other Domestic Resources

Yemenese Tax Authority, in Arabic

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation