Djibouti

To improve debt sustainability, the Government will not enter into any contractual obligations for new external public and publicly guaranteed (PPG) non-concessional debt in FY25, except if the non-concessional debt limit is adjusted by the World Bank to a) reflect any material change of circumstances or b) in coordination with the IMF, in particular in line with adjustments in the IMF Debt Limit Policy.

To increase domestic revenue mobilization, in particular the collection of registration fees, vehicle taxes and tax stamps, the Republic of Djibouti has submitted to Parliament for approval the Finance Law 2025 that includes the regulation of these taxes through electronic payment or e-payment.

To strengthen tax administration control and fiscal responsibility, the Republic of Djibouti, in accordance with Articles L.1221-1 and L.1221-2 of the Commercial Code and Article 47 of the General Tax Code, has included a measure in the Finance Law 2025 (LF2025), submitted to Parliament for approval, providing for the gradual introduction of an accounting system in small and medium-sized enterprises (SMEs) with an annual turnover of less than FDJ 50 million (US$ 0.3 million). This accounting system includes: (i) the use of the Djiboutian chart of accounts, (ii) the use of accounting software based on the chart of accounts, and (iii) the supervision of accounting by an accountant approved by the Ministry of Budget.

To enhance revenue mobilization and fiscal sustainability, the President of Djibouti has issued a decree, which has been officially published in the gazette by the Secretary General of the Government. This decree establishes a Large Enterprises Directorate (DGE) within the General Directorate of Taxes. The decree delineates the objectives, missions, portfolio, geographic jurisdiction, internal organization, and eligibility criteria of the DGE. According to the decree, eligible taxpayers encompass large private sector companies, commercial State-Owned Enterprises (SOEs), and companies in free zones with an annual turnover of 50 million FD or more over any of the three preceding years. Furthermore, the DGE, now operating from its newly equipped building and staffed with dedicated personnel, has published its inaugural monthly tax collection report on the Ministry of Budget's website.