Somaliland laws affecting UN
organizations include the following:
 Somaliland Constitution
 Somaliland Taxation Laws: Direct tax;
Customs duties and tariffs; Registration
Tax; Road tax
 Somaliland private sectors Act of 31/2004
1. Somaliland Constitution


Article 10.2 of the constitution dealing with
relations between Somaliland state and
United Nations provides that: “ Republic of
Somaliland recognizes and shall act
inconformity with UN charter and
international law…..”
According to the constitution, UN Charter
and Conventions on Immunity and Privileges
of UN organizations are among the
international instruments that should be
applied to relations between Somaliland state
and UN organizations working within the
Somaliland territory.
2.
Somaliland taxation laws and UN
Organizations
2.1. Direct taxation and UN organizations
 Somaliland Direct tax Act provides that UN
organizations shall be exempted from income
tax inconformity with generally accepted rules
of international law and international
treaties binding on Somaliland {Article 15(c)}
The enforcement of this exemption requires that, in addition to rules
of Immunity and privileges, there shall be an international
agreement on Somaliland. So one may question whether UN
organizations working in Somaliland may relay on existing
agreement between Un Organization and the than Republic of
Somali as binding agreement on Somaliland?
2.2. Import taxation and UN organizations
Somaliland Customs law exempts from import duties
on :
All objects and motor vehicles for official use
of the United Nations and its specialized
agencies
Objects and motor vehicles necessary for the
execution with Agreements ratified by law
Issue for discussion:
Exemption granted to UN organization for an official use is
reflection of the immunity and privileges rules recognized by the
Somaliland Constitution. What need to understand is the
requirement of exemption of import duties on objects for non
official use ( necessary for the execution with agreements ratified
by law)
2.3.Registration and Road taxes and Un
Organizations
According to SL Road Tax Act, Road tax is
exempted for vehicles of UN organizations
 SL Registration tax Act ( Act No, 83/96)
subjecting payment of tax on documents
relating to agreements, contracts, ownership
and transfer of title deed and similar
documents affects UN organizations. UN
organ may pay registration tax if it is interesting
party.
 Registration tax is exempted on agreements
between UN organization and SL government
 If registration tax is not paid , the concerned
document shall have no legally enforceable effect in
Somaliland territory. And this may affect a UN
Organization.
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3. Somaliland laws and employees of UN
Organizations
3.1 . Income tax and employees of UN
organizations
According to SL Direct Tax Act, pensions and
income from employment of any nature what so
ever paid under the terms of Contract of
employment is subject to tax.
Income tax exemption is given to Expatriate
officials and employees of UN and its
specialized agencies…… inconformity with
international agreement, in respect of their
salaries and any other emoluments received in
connection with their functions
 Issues for discussion:
1.
What the requirement of inconformity with
international agreement means? Does it refers to the
convention on UN organizations’ immunity and
privileges? or does this need the existence of
additional binding international agreement on
Somaliland?
2.
Should local/national employees of UN
organizations be considered as UN employees
exempted from income tax?
4. As per SL private Act of No. 31/2004 local employee of
UN are subject to provisions of labor law, so one may
argue that national employees of UN organizations
are subject to Somaliland income tax?
4.
The SL private sector Act requires that copies of
employment contract including those contracts
between UN organization and Somaliland nationals
shall be kept and filed in Directory of Labor. And one
of the reasons for this requirement is to enable the
government to trace employment contract and hence
to collect tax. Should UN organization comply with
this?
3.2 . Import tax and Employees of UN
organizations
Somaliland Customs law provides that” …
objects and motor vehicles belongs to the
representatives, officials and experts of United
Nations organizations… “ shall be exempted
from import duties “… in accordance with
international agreements ratified by law”
 Issue for discussion:
What international agreements ratified by law means
? Does it refer to rules of immunity and privileges of UN
organizations recognized in Article 10 of Somaliland
constitution? Or does this requires specific
international agreement? Can UN organizations relay
on agreements with the than Somalia?