Djibouti

Tax and financial measures associated with COVID-19

11 May 2020

On May 6, the authorities announced 1,120 laboratory-confirmed cases of COVID-19. Over 1% of the population has been tested, making it one of the highest percentages of tested compared to the total population on the continent. The authorities have launched a massive door-to-door screening campaign targeting 45,000 people. General confinement, except for essential services, has been extended until May 8.

Tax measures

  • Reduced service
  • Deferral of the tax return payment due date with no penalty
  • Deferral of payment deferral of the salary taxes (ITS) companies impacted by the binding effects of the pandemic of COVID-19

Social security measures

  • Reduced service
  • Use of telework
  • Transfer payments via various bank branches
  • Removal of late penalty
  • Deferral of payment of social security contributions companies impacted by the binding effects of the pandemic of COVID-19

Employee and employer supportive measures

The Djiboutian state has introduced compensatory compensation to the employees of companies impacted by the binding effects of the pandemic of COVID-19. In order to qualify, they must meet a number of conditions.

Thus, the employee will receive compensation for his loss of salary up to 70% of his gross salary, which will be composed as follows:

  • 30% of the gross salary will be paid by the State;
  • 40% of the gross salary will be paid by the Employer.

Also, the compensation must not be less than the SMIC of 35,000 DJF.

The conditions of compensation will apply for 3 months from 1 May 20.

Under the same conditions as wages, companies can claim deferral of the salary taxes (ITS) and social security contributions (CNSS) until 31 July 2020.

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