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Somaliland Public Finance Laws

Constitutional provisions on budgeting and public finance: Articles 54 & 55  

SOMALILAND NEW PUBLIC FINANCE LAWS

The long awaited updating of  Somaliland’s Public Finances laws, which were all based on 1960s Somali Republic legislation,  has now be undertaken with the promulgation of four significant laws over the last six months and the fifth law going its parliamentary stages. The drafts of these laws have been in consideration since 2011. The four laws currently in force deal with the management of the public finances; customs; Inland Revenue; and the State Auditor. The remaining draft law deals with public procurement.    

Copies of the promulgated laws in Somali are all set out below. No official English language version of these laws (which were originally drafted in English) are currently available and so we have provided here in each tables setting out the arrangements of all the articles of each law in both Somali and English for quick reference. In the case of two of four promulgated laws, the Customs Law and the Inland Revenue Law, there are provisions which state that both the Somali and English version are official versions and that, in case of inconsistency between the two versions, the Somali version shall prevail. It is essential, therefore that the Official English versions of these two laws be formally promulgated and Gazetted as soon possible. The draft English versions of these laws have not been amended or added to (i.e preambles) much less than the other two promulgated laws for whom, like all the vast majority of other Somaliland legislation, the official version is the Somali language only.      

Copies  of the New Public Finance Laws (2016-17)

1. Somaliland Public Finances and Management Law – Law No. 75/2016 consisting of 57 Articles and 2 Schedules was signed by the President on 31 January 2017 and, according to the Law (Art. 54(1)) comes into force on its signature by the President. 

• Copy of the Law as Gazetted on 04/02/2017 (large file) Xeerka Maamulka & Maaliyadda Qaranka Lr. 75/2017.
• Copy of the Law, smaller file, with Arrangements of Articles in Somali – Somaliland Public Finances and Management Law No. 75/2016.
• Arrangements of the Articles of Law No. 75/2016 [in Somali and English].
• Repeals (as set out in Art. 54(2) the Law: General imprecise clause about any previous provisions inconsistent with the provisions of this Law (Art. 54(2)). Comment: The effects of this new Law on the provisions of the Financial Accounts of the State (Law No, 90/96) and the Regulations of the Financial Accounts of the State (Law 87/96) should have been made more clearly in the Repeals and Savings article. 

2. Somaliland Inland Revenue Law – Law No. 72/2016 consisting of 249 Articles and 8 Schedules was signed by the President on 16 July 2016, and according to the Law (Art. 249) comes into force on its gazetting, which was on 01/09/2016.

• Copy of the Law as Gazetted on 01/09/2016 (large file) Xeerka Dhakhliga Guud iyo Cashuuraha Somaliland Lr. 72/2016.
• Copy of the Law, smaller file, with Arrangements of Articles in Somali – Somaliland Inland Revenue Law No. 72/2016.
• Arrangements of the Articles of Law No. 72/2016 [in Somali and English]
• Repeals (as set out in Art. 54 of the Law): Direct Taxation Law No. 89/96; Sales Tax Law No. 84/96 and their Regulations.

3. Somaliland Customs Law – Law No. 73/2016 consisting of 210 Articles was signed by the President on 16 July 2016 and, according to the Law (Art. 210) comes into force on its gazetting on 01/09/2016. 

• Copy of the Law as Gazetted on 01/09/2016 (large file) Xeerka Kastamada Somaliland Lr. 73/2016.
• Copy of the Law, smaller file, with Arrangements of Articles in Somali -Somaliland Customs Law – No. 73/2016.
• Arrangements of the Articles of Law No. 73/2016 [in Somali and English].
• Repeals (as set out in Art. 208 of the Law): Customs Law No. 91/96.

4. Somaliland State Auditor General Law No. 76/2016 consisting of  70 Articles was signed by the President on 31 January 2017 and, according to the Law (Art. 70) comes into force on its signature by the President. 

• Copy of the Law as Gazetted on 04/02/2017 (large file) Xeerka Hanti-dhowrka Guud ee Qaranka Lr. 76/2016.
• Copy of the Law, smaller file, with Arrangements of Articles in Somali, Somaliland State Auditor General Law  No. 76/2016.
• Arrangements of the Articles of Law No. 76/2016 [in Somali and English].
• Repeals (as set out in Art. 69  of the Law):  Auditor General Law No. 05/98 . Also, as set out in Article 69(1) of the Law, other than Art. 31 thereof., the rest of the provisions of  Part II of the Financial and Accounting Procedure of the State  – Law No. 87/96, (i.e Arts 10 to 36) are repealed.

5. Somaliland Public Procurement Law - Law No. 82/2018 (as gazetted) came into force on the date of its gazetting on 3 November 2018. Copy of the Law (in Somali) with its arrangements of the articles is also available here - Xeerka Qandraasyada - Xeer Lr. 82/2018.

PREVIOUS PUBLIC FINANCE LAWS

The main law & regulations governing public finances are, subject to the  changes brought about by the later constitutional provisions, the the following 1996 laws: Note that some of the provisions of the following 1996 Law and Regulations have been supreded by the provisions of the new 2016/7 Public Finance Laws above

• The Financial & Accounting Procedures of the State - Law No. 90/1996  - English (large pdf file copy)
• Regulations for the Accounts of the State - Law No.87/1996 - English -  (large pdf file copy) - Part II (other than Art. 31) of these Regulations have been expressly repealed by Art. 69 of the new Somaliland State Auditor General  Law No. 76/2016 - see above.
• Presidential Decree 249/1996 keeping the above Law and Regulations in force in Somaliland - Somali       English

 Both the Law and the Regulations are an exact reproduction of the law and regulations with the same name passed in the Somali Republic in 1962, but should of course now be read with the provisions of the Somali Constitution. For an examination of how the budget controversies between the President and the House of Representatives were partly clouded by the interaction between these old laws and the constitution, see  this extract of an article by the Somalilandlaw.com editor. 

Somaliland Office of the Auditor General Law (Law No. 7/99)   Law No. 7/99 (Xeerka Hay’ada Hantidhawrka Guud - Xeer Lr. 7/99) came into force on 6 January 1999 on its signature by the President. The Law consists of the following 25 Articles. This Law replaced the 1972 Law on Magistrates of Accounts - Law No. 34 of 13 April 1972, as well as the later laws dealing with the structure of that Office (Establishment of the Office of the Magistrates of Accounts - Decree No. 69 of 13 March 1973 and the later Establishment of the Office of the Auditor General - Decree No. 19bis of 1 June 1986).  This 1999 Law has now been repealed by the new Somaliland State Auditor General Law - No. 76/2016 (above) .

 Other than the Financial and accouncing Law and Regulations mentioned above, this 1996  Somaliland Presidential Decree  re-adopted the following  pre 1969 public finance laws to Somaliland (249/96 of 15 May 1996) .

1. Customs Law -  No. 91/96  Repealed by the New Somaliland Customs Law (see above)
2. Stamp Duty Law  - No. 85/96 (in English) and, also, now,  in  Somali
3. Investigation and Suppression of Violation of Financial  law -  No. 86/96 (in English) - This Law deals only with administrative violations and offences specifically mentioned in financial laws (and especially those relating to taxes) and does not supersede either the crimes specified in the Penal Code or those crimes which are set out on other special laws, such as those dealing with corruption.
4. Stores Regulation – No. 88/96- these are essentially the 1962 Stores Regulations the continued use of use of which was confirmed by presidential decree 249/1996 (see above)
5. The Body of Laws on Direct Taxation LAW No. 86/96 of 13 March 1996 (Somaliland Direct Tax Law). Repealed by Somaliland Inland Revenue Law – Law No. 72/2016, (Art. 54) - see above.

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Other Revenue & Public Finance Laws: [This list is not exhaustive and we shall be updating this section and the rest of this page]

• Local Government Unified Tariffs Law No. 12/2000 (Somali) and including the Presidential decree bringing into force.  Also Ministerial Circular 7/2000 relating to this Law
• Ports Tariffs Law  (It is believed that this law is based on the 1985 Regulations)
• Circulation Tax Law No. 82/96
• Sales Tax Law  No. 84/96
• Registration Tax Law No. 83/96
• Aviation & Airport Tax Law 10/1999
• Airports Security Tariffs Law - Law No. 61/2013
• Post & Telecommunication Taxes Law No. 11/1999
• Public Contracts Law No. 79/1996

For Central Banking and Currency (see Separate page on Banking Law)

ANTI-CORRUPTION LAWS

Law on the Prevention of the Misappropriation of Public Assets & on Combatting Corruption - Law No.38/2007  - large pdf file - in Somali.  A  smaller pdf file of this Law is available in the Somaliland Criminal Law page.

See also the  Investigation and Suppression of Violation of Financial  law -  No. 86/96 (in English) (Noted above)

The notes below are only for historical purposes and will be moved to the new page..

The 2012 Budget Presidential Decree and the House Resolution. The Decree dated 07 April 2012 brought the much delayed budget into force.

Somaliland Budgets Assessments

The House of Representatives’ Economy & Finance Committee investigated and analysed the first budget   submitted to the newly elected House in 2006. A copy of their study is attached. This is the best oversight report of the budget undertaken by the Committee.  

The following assessments of the last Somaliland budgets were made by, Alla how naxiriste, the late Mr Ali Gulaid CPA (Ali Marshal):

2003 2003 Budget Analysis 2004   2005 Miisaaniyada Sanadka 2005 2006 Miisaaniyada 2006 2008   2009 Naqdiga Miisaaniyada 2009

 2010 Somaliland Budget: The House of Representatives’ Economy Committee has issued their analysis of the late 2010 budget submitted to the House recently and approved on 10 May 2010. 2010 Budget Commentary by Mr Abdirahman Mohamed (source: www.somalilandtimes.net )