By Zakarie Hassan - Reporter
Somalia, 2 June 2026 - Somalia's North East State announced a new employee taxation system it said is modelled on European Union tax collection methods.
The administration said the new system will tax employees income to increase revenue and support basic public services such as health, education, roads, water and security.
A statement broadcast by the state television said many European countries collect income-based taxes from employees, with tax rates ranging from around 15% to more than 50%, depending on an individual’s income level.
The statement added that in EU countries, employee taxation is among the most important sources through which governments finance social services and development projects.
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“The employee taxation system of the North East State of Somalia is a good example of how public revenue can be transformed into quality services,” the state television statement said.
The North East State officials said the system could serve as a model for other federal member states.
The move is part of efforts by the administration to build a modern financial system to boost domestic revenue and improve service delivery.