The Income Tax Bill was approved by the House of the People of the Federal Parliament of Somalia on March 10, 2025, meaning-while the Somali Upper House (Senate) approved in April 22, 2025 and Subsequently, the President of the Federal Republic of Somalia H.E. Dr. Hassan Sheikh Mohamud signed the bill into law on July 21, 2025. The law was then published officially in the Government of Somalia's official bulletin on August 17, 2025, under document number Lr.2. This timeline marks a significant legislative process towards modernizing Somalia’s tax system. This legislative development is crucial as it provides Somalia with a comprehensive legal framework to regulate income tax. The law aims to enhance domestic revenue mobilization, ensuring the government can finance essential services and development projects without excessive dependence on foreign aid. By instituting clear tax policies and enforcement mechanisms, this law promotes economic stability and growth. Overall, the approval, presidential assent, and official publication of the Income Tax Law represent Somalia’s commitment to strengthening its fiscal governance. The law is expected to improve tax compliance and administration, contributing to increased public revenues and supporting Somalia’s broader economic reform agenda. Both the government's actions and the parliamentary approval highlight Somalia's progress towards building transparent, effective, and sustainable financial institutions to underpin national development goals.