Who must file a tax return?

All residents with taxable income and non-residents with Yemeni-source income must file a tax return.

What is the filing deadline?

Tax returns must be filed by April 30 following the end of the tax year.

How is foreign income taxed?

Residents are taxed on their worldwide income, including foreign income, at a flat rate of 15%.

Are capital gains taxable?

Capital gains are included in taxable income and taxed at the flat rate of 15%.

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Rank #46

Yemen

Western Asia • UTC+3 • Asia/Aden

Monthly Cost

$1,180

-46% vs USA

Internet

37 Mbps

Fixed Broadband Avg

Monthly Cost

$1,180

-46% vs USA

Internet

37 Mbps

Fixed Broadband Avg

Yemen's Tax System

Yemen's tax system includes a flat personal income tax rate, a corporate tax rate, and a standard VAT. The system is designed to be straightforward, with few special regimes.

Income Tax

15%

Flat rate on personal income

Corporate Tax

20%

Standard corporate tax rate

VAT / GST

Standard VAT rate

Nomad Visa

Not Available

No dedicated program

Tax System Overview

Yemen's tax system is characterized by a flat personal income tax rate and a standard VAT. Corporate income is taxed at a competitive rate.

System Type

Flat tax system

Resident Taxation

Residents are taxed on worldwide income.

Non-Resident Taxation

Non-residents are taxed only on Yemeni-source income.

Tax Year

January 1 – December 31

Income Tax Bands

Yemen applies a flat personal income tax rate of 15% on all taxable income.

Tax Treaty

Double Taxation Agreements help prevent individuals and businesses from being taxed twice on the same income.

Saudi Arabia

Treaty Active

Income Covered:Dividends, interest, royalties, and business profits.

Withholding Tax Rates:Reduced rates: dividends 5%, interest 5%, royalties 10%.

Residency Rule:Residency determined by permanent home and 183-day rule.

Tax Credit:Foreign tax credit mechanism to avoid double taxation.

The treaty between Yemen and Saudi Arabia aims to prevent double taxation on income and provides reduced withholding tax rates on dividends, interest, and royalties.

Key Benefits

Prevents double taxation on income earned in both countries.
Reduced withholding tax on dividends, interest, and royalties.

Totalization Agreement

Totalization agreements help workers avoid double social security contributions.

Saudi Arabia

Agreement Active

The agreement between Yemen and Saudi Arabia coordinates social security systems to prevent double contributions.

Coverage Areas

Old-age pensionsDisability benefitsSurvivor benefits

Facts

Prevents double social security contributions for workers in both countries.
Allows workers to combine contribution periods for benefits eligibility.

Other Countries with Agreements

Oman

United Arab Emirates

Business & Freelancing

Corporate Tax Rate

20% standard rate for all corporate entities.

VAT Registration

Mandatory for businesses with annual turnover exceeding YER 10 million.

Freelancer Rules

Freelancers are taxed under the personal income tax regime at a flat rate of 15%.

Crypto Policy

Cryptocurrency transactions are not specifically regulated; general tax rules apply.

Frequently Asked Questions

Digital Nomad & Benefits

Visa Details

Minimum Income:Not Specified

Duration:1 Year, renewable

Renewal:Renewable annually with continued employment or business activity

Proof of Employment:Employment contract or business registration required

Additional Requirements:Valid passport, police clearance, financial means

Tax Perks

Flat personal income tax rate of 15%.
Competitive corporate tax rate of 20%.

Filing Roadmap

Gather Income Documents

Collect all relevant income documents, including employment slips and business income statements.

Complete Tax Return

Fill out the tax return form with all income details and applicable deductions.

Submit Tax Return

Submit the completed tax return to the tax authority by the April 30 deadline.

Pay Any Tax Due

Ensure any tax owed is paid by the deadline to avoid penalties.