Until 2009, Djibouti’s tax system was based on separate codes that dealt with direct and indirect taxation. In that year, however, value-added tax (VAT) was introduced, and these different codes were bundled in one single document, known as the General Tax Code (GTC).

Unfortunately, due to changes to financial legislation, the GTC has not been updated since 2011. The bundling of different texts into a single code had several objectives, the most important of which was to facilitate access to applicable tax provisions. This modernisation process in regards to the country’s tax code was preceded, some years earlier, by institutional reforms that resulted in the creation of the Tax Management Office. In addition to this, through subsequent reforms the Organisation for Tax Administration, which was previously focused solely on tax to be collected, has taken on a new organisation based on functions.