Tax in Yemen

Who is the tax authority and where do filings live?

Yemen's Tax Authority, under the Ministry of Finance, administers Yemen's tax system [SC1]. Substantive law: Income Tax Law 17/2010 (replacing Law 31/1991), Customs Law, and successive amendments. Yemen is a Greater Arab Free Trade Area (GAFTA) member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. Personal returns due 1 February [SC1]. Corporate annual returns due 4 months after fiscal year-end. General Sales Tax monthly.

Who is a Yemeni tax resident?

Under Income Tax Law 17/2010, an individual is tax resident if (a) maintaining residence in Yemen, OR (b) physically present 183+ days [SC2]. Residents taxed on worldwide income.

What are the personal income tax rates?

Three brackets: 10 percent up to YER 120,000 monthly; 15 percent on YER 120,001-300,000; 20 percent above YER 300,000 [SC1]. Investment income face specific rates.

How does Yemen's corporate tax work?

CIT 20 percent flat for resident companies [SC2]. 35 percent for telecoms; 50 percent for petroleum sector. Withholding on dividends to non-residents 10 percent. Pillar Two not transposed. Tax losses 4 years.

What about VAT/GST?

General Sales Tax 5 percent on most goods and services [SC3]. Reduced rates apply on specified categories.

How are cryptoassets taxed?

Central Bank of Yemen advisory: cryptoassets restricted [SC2]. Where declared, gains under existing categories.

What is the treaty network and what are the audit triggers?

Yemen has approximately 6 active double tax treaties [SC4]. MLI not signed. Standard SOL 5 years; extended for fraud.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) post-2014 conflict context dominates all Yemen-related operations — practitioners must conduct full sanctions compliance review (specific Houthi-related US sanctions and broader UN sanctions framework apply); (2) parallel-administration complexity (Houthi-controlled vs internationally-recognised government areas); (3) sector-specific 35 percent telecoms / 50 percent petroleum CIT; (4) Pillar Two not transposed; (5) very limited treaty network (6 DTCs); (6) MLI not signed; (7) GST 5 percent only; (8) GAFTA framework; (9) currency-control framework affecting cross-border flows; (10) Income Tax Law 17/2010 framework.