iCalculator™ YE: Yemen Tax Calculators

Welcome to iCalculator™ YE, your comprehensive suite of free tax calculators for Yemen. iCalculator™ has provided free tax calculators for Yemen since 2019. Since those early days we have extended our resources for Yemen to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Yemen Tax Calculator and salary calculators within our Yemen tax section are based on the latest tax rates published by the Tax Administration in Yemen. In this dedicated Tax Portal for Yemen you can access:

Yemen Tax Calculator 2024/25

The Yemen Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Yemen. This includes calculations for

1. Employees in Yemen to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Yemen.

Discover Yemen

Yemen, located on the southern tip of the Arabian Peninsula, is a country with a rich history and strategic geographical positioning. It is bordered by Saudi Arabia to the north, the Sultanate of Oman to the east, and has coastlines along the Red Sea to the west and the Arabian Sea and Gulf of Aden to the south. This location has historically made Yemen a crossroads of cultures, evident in its diverse cultural heritage, architecture, and traditions. The country's capital, Sana'a, is one of the oldest continuously inhabited cities in the world, known for its stunning ancient architecture.

Yemen's culture is deeply influenced by Islamic traditions, alongside ancient customs that predate the spread of Islam. It is renowned for its hospitality, poetry, and music traditions, which play a significant role in Yemeni society. The country is also the origin of Mocha coffee, highlighting its historical importance in the global coffee trade.

The economy of Yemen is one of the least developed among the Middle East countries, primarily due to prolonged conflicts, political instability, and limited natural resources. The country's economic structure is heavily reliant on the oil sector, which accounts for the majority of government revenues and export earnings. However, the ongoing conflict has severely impacted oil production and exports, leading to significant economic challenges.

Despite the predominance of the oil sector, agriculture remains a crucial part of Yemen's economy, employing a significant portion of the population. The sector is characterized by small-scale farming, with qat (a stimulant plant) being one of the most significant crops, along with cereals, fruits, and vegetables. Water scarcity poses a significant challenge to agricultural development in Yemen.

With its extensive coastline, fishing is another important economic activity in Yemen. The fishing industry has the potential to be a significant source of food and employment for the population. However, like many other sectors, it is underdeveloped and faces challenges from overfishing and lack of infrastructure.

The services sector, including trade, transportation, and telecommunications, plays a vital role in Yemen's economy. However, the ongoing humanitarian crisis has led to a situation where humanitarian aid represents a significant portion of the country's economic activity. International aid organizations are active in Yemen, providing essential services and support to millions of Yemenis affected by the conflict and food insecurity.

In conclusion, Yemen's strategic location and rich cultural heritage contrast sharply with its current economic and humanitarian challenges. The country's economy is in dire need of stabilization and development, with a focus on diversifying away from oil dependency and addressing the urgent needs of its population. The path to economic recovery and growth is closely tied to the resolution of the conflict and the establishment of a stable and inclusive political environment.

Tax Overview of Yemen

The taxation system in Yemen is designed to fund public services and the government's budget while aiming to encourage economic growth and stability. Given Yemen's complex socio-economic context, the tax system plays a crucial role in the country's efforts to achieve financial independence and provide for its citizens. The system comprises various types of taxes, including income, corporate, sales, and customs duties, among others.

Income Tax

Income tax in Yemen applies to individuals and businesses, with the intent to distribute the tax burden according to the ability to pay. This progressive approach to taxation ensures that higher earners contribute more to the national budget. The income tax system is designed to be fair and equitable, taking into account the income levels and economic conditions faced by residents and citizens.

Corporate Tax

Corporate tax targets companies operating within Yemen, including foreign entities conducting business in the country. This tax is crucial for generating revenue from the business sector, and the government strives to maintain competitive rates to attract and retain investment. The corporate tax system reflects the country's commitment to fostering a conducive environment for business growth and development.

Sales Tax and Value Added Tax (VAT)

Sales tax and VAT are applied to goods and services in Yemen, representing a significant source of revenue for the government. These consumption taxes are intended to be broad-based, impacting a wide range of products and services to ensure a steady flow of income that can support public expenditure. The implementation of VAT is part of Yemen's alignment with global tax practices, aiming to modernize its tax system and increase efficiency.

Customs Duties

Customs duties in Yemen are levied on imported goods, playing a critical role in regulating trade and generating income from cross-border commerce. These duties not only contribute to the national budget but also help protect domestic industries by making imported goods relatively more expensive compared to locally produced alternatives.

Challenges and Reforms

The taxation system in Yemen faces challenges related to collection efficiency, tax evasion, and the impact of ongoing conflict on the economy. Efforts are underway to reform the tax system, aiming to improve compliance, broaden the tax base, and enhance administrative efficiency. These reforms are crucial for increasing government revenue, which is essential for funding public services and supporting economic recovery and development.

In conclusion, the taxation system in Yemen is a fundamental component of the country's economic infrastructure, designed to fund public services and promote economic stability. Despite facing significant challenges, ongoing reforms aim to enhance the effectiveness and fairness of the tax system. For the latest tax tools and tax tables, consider visiting our Tax Hub, which provides valuable resources to assist individuals and businesses in navigating the complexities of tax planning and compliance.