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Djibouti Introduces Restriction on the Deduction of Salaries Paid to Foreign Employees

|Approved Changes|Djibouti
Djibouti

The Djibouti Finance Law for 2019 was issued on 31 December 2018. One of the main tax measures of the law is the introduction of a new restriction on the deductibility of salaries paid to foreign employees when the company employs more than 5 foreign staff. The new measure provides that, in such cases, salaries paid to foreign employees are deductible from taxable profit only for 20% of their …

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