Domestic Taxes & RatesTax Information
TAX TYPES |
TAX RATES |
DUE DATE FOR PAYMENT |
INTEREST |
PENALTY FOR DEFAULT |
LEGAL PROVISION REFERENCE |
STAGES OF COMPLIANCE & ENFORCEMENT MANAGEMENT MEASURES |
Goods & Services Tax (GST) Goods and Services Tax (GST) is a general tax on consumption expenditure. It is collected on behalf of NRA by GST registered businesses with a minimum threshold of Le 350mllion. |
15% of the value of taxable supplies |
Monthly: 31st of the month following the month tax is collected |
Average Treasury Bill Rate + 3% |
Le 1,000,000 or 5% of the GST payable for the period one-half of the Bank of Sierra Leone lending rate for each month in which the GST remains outstanding, until the payment is made. |
Section 58 of GST Act 2009 |
*Notice of intention to enforce *Closure of business *Confiscation of goods and assets *Public auction of goods and assets *Third party recovery *Litigation/court action *Prevention from travelling in and out of Sierra Leone *Prevention from clearing goods through the Ports *Non-issuance of Tax Clearance Certificate to facilitate business *Imprisonment |
Corporate Income Tax This tax is imposed on the income of limited liability companies Annual Corporate/Trade Tax Returns should be submitted annually |
30% of chargeable income / profit |
Quarterly: 15th day of the last month in the relevant quarter Yearly: 30th April each year |
Le 5million + 10% of tax payable for failure to file annual returns |
Section 5 (1) and Part III of the First schedule of Income Tax Act 2000 (as amended) Section 150 (1) of Income Tax Act 2000 (as amended) |
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Rent Tax (Residents & Institutional Landlords) Rental Income tax is charged on income generated from rented houses or buildings located in Sierra Leone irrespective of the country of resident of the owners as long as they are meant for commercial activity. |
10% of rental income received as Withholding Tax & 30% of chargeable income for businesses and individuals in rental business |
Annually: not later than 90 days after the due date of the rent |
35% of total rent due |
Section 120 (3f) of Income Tax Act 2000 (as amended) |
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Withholding Taxes Withholding Taxes are taxes withheld from the payment made under contract for the supply of goods and / or services above Le 500,000 directly from the source/ point of payment. The service users known as withholding agents are required by law to withhold the tax from any subsequent payment for services to payee |
5% for local contractors 10% for foreign contractors 25% for natural resource payment |
Monthly: 15th day following the end of the month deduction is made |
10% if paid within 30 days from the due date. 15% % if paid after 30 days but less than 90 days from the due date. 20% if paid after 90 days but less than 180 days after the due date 25% if paid after 180 days from the due date |
Section 152 (1) (2 a – d) of Income Tax Act 2000 (as amended) |
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Trade/Profit Tax These are taxes on individual or partnership engaged in trade, business, profession or vocation. |
Up to Le300,000 monthly/ Le3.6 million per annum: Nil
Next Le300,000 monthly/Le3.6 million per annum:15% Next Le 300,000 monthly/Le3.6 million per annum: 20% Above Le 900,000 monthly /Le10.8 million per annum: 30% |
Quarterly: 15th day of the last month in the relevant quarter |
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Section 4 (1) and Part I of the First schedule of Income Tax Act 2000 (as amended) |
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Pay-As-You Earn Taxes (PAYE) This is a personal income tax imposed on employment income, salaries, emoluments and benefit-in-kind of citizens |
First Le300,000 monthly/Le3.6 million: Tax free Next Le300,000 monthly/Le3.6 million per annum: 15% Next Le300,000 monthly/Le3.6 million per annum:20% Above Le9000,000 monthly/Le 10.8 million per annum: 30% |
Monthly: against 15th day of the month following the tax period Part II of the First Schedule of Income Tax Act 2000 (as amended) |
10% if paid within 30 days from the due date. 15% % if paid after 30 days but less than 90 days from the due date. 20% if paid after 90 days but less than 180 days after the due date 25% if paid after 180 days from the due date |
Section 152 (1) (2 a – d) of Income Tax Act 2000 (as amended) |
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Payroll Tax This is a levy payable by the employer on behalf of a foreign employee. |
ECOWAS Nationals: Le500,000 Non ECOWAS Nationals: Le3,000,000 |
Yearly:31st day of January to be paid by employer |
Le 5 million or 5 years jail term |
Pay-Roll Tax Act 1972 (as amended) |
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Acapital gains tax(CGT) is ataxongains, the profit realized on the sale of a non-inventoryassetthat was purchased at a cost amount that was lower than the amount realized on the sale. |
30% of the capital gain acquired from the disposal of a chargeable asset. |
Return should be submitted together with the payment within 30 days of disposal |
Finance Act 2013 |
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Foreign Travel Tax |
10% of the cost of the ticket. |
Monthly: 15th day following the month the Tax was withheld |
As provided for in the Foreign Travel Act of 1992 |