Yemen

{"ftc_utility":"low","fbar_trigger_notes":"Any Yemeni bank account with aggregate value exceeding USD 10,000 at any point during the calendar year triggers FBAR filing requirements on FinCEN Form 114. Yemeni banking infrastructure has been severely degraded by the conflict. The Central Bank split into two competing institutions in 2016. Wire transfers and normal banking functions are unreliable or unavailable in many areas.","ftc_utility_reason":"Yemeni tax administration is largely non-functional. Taxes are rarely assessed or collected in practice, meaning few US expats would accumulate creditable foreign taxes paid. FTC would be of limited practical value because there is little to no Yemeni tax actually paid that could offset US liability.","presence_day_count_notes":"Yemen is a Level 4 Do Not Travel country per the US State Department. The US Embassy suspended operations in 2015. Achieving 330 days of physical presence in Yemen is theoretically possible under IRS rules but is practically precluded by the ongoing armed conflict, active hostilities, and the absence of consular services. US persons present in Yemen face extreme personal safety risks unrelated to tax compliance.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":false,"estimated_housing_exclusion_usd":15000,"local_tax_rate_on_earned_income":0.2,"bona_fide_residence_test_applies":false}

{"pension_income":{"notes":"Foreign pension income received by a Yemeni tax resident is technically subject to progressive income tax. Given conflict conditions, actual collection is largely non-functional outside government-controlled Aden and surrounding areas.","tax_rate":0.1,"locally_taxed":true},"social_security":{"notes":"No US-Yemen totalization agreement or income tax treaty exists. US Social Security benefits received by a Yemen-resident individual are not specifically exempted under Yemeni law, but practical enforcement is absent.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions would theoretically be assessable as income under domestic rules, but no treaty exists and enforcement is negligible. There is no specific Yemeni statutory exemption for Roth-type accounts.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"No US-Yemen income tax treaty exists. Distributions from US 401(k) or IRA accounts received by a US expat residing in Yemen would technically be subject to Yemeni income tax as foreign-source income if the individual is a resident, but tax administration has largely collapsed due to the civil war. No treaty protection is available. Practical enforcement is near zero.","tax_rate":null,"locally_taxed":false,"treaty_protection":false}}

{"rate":0.2,"notes":"Yemen does not maintain a separate capital gains tax regime. Gains realized by individuals are generally folded into ordinary income and taxed at progressive rates up to 20%.","details":{"tax_type":"Capital Gains Tax","country_name":"Yemen","country_iso_code":"YEM","source_references":["Yemen Income Tax Law No. 17 of 2010","KPMG Yemen country profile","IMF Article IV consultation reports"],"last_verified_date":"2026-06-03","general_description":"No standalone capital gains tax exists in Yemen. Gains on asset disposals by individuals are treated as ordinary income under the Income Tax Law No. 17 of 2010. Corporate gains are included in taxable profit and taxed at the standard corporate rate of 20%.","corporate_capital_gains":{"rate":0.2,"tax_treatment":"Included in corporate taxable profit; taxed at standard corporate income tax rate of 20%."},"individual_capital_gains":{"rate":0.2,"tax_treatment":"No separate CGT; gains treated as ordinary income and taxed at progressive rates up to 20%."}}}

{"notes":"Yemen applies a withholding tax on dividends paid to non-residents. Resident individuals receiving dividends from Yemeni entities are generally subject to withholding at 10%. The ongoing civil conflict has severely disrupted tax administration and enforcement.","rates":[{"rate":0.1,"type":"withholding","notes":"Standard withholding rate on dividends paid to both residents and non-residents under Income Tax Law No. 17 of 2010. Enforcement is effectively suspended in many areas due to conflict."}]}