Taxes are charged by the Sudan government in accordance with the tax act of the country. The Chamber of Taxation, the department in charge of levying and collecting taxes, implements all tax laws. Residents and non-residents have to pay certain charges on income earned while working or doing business here. The taxes accrued are used to provide affordable healthcare, standard amenities, and good quality of living for citizens residing within the state.
Those liable to pay Taxes
The imposing of taxes has been in existence since 1900. They are levied on income earned by any of the following individuals: residents and non-residents, private and public shareholding corporations including, insurance firms, mining organizations and money employment entities, industrial establishments, etc.
Types of Tax
Several kinds of taxes exist in the country, each having a specific rate. While direct taxes are charged on income sourced in the territory by the government, indirect taxes are paid through third parties, on goods bought or services rendered. Taxes include business profit tax (BPT), real estate income, personal income tax, stamp duty, capital gains tax, value-added tax, et cetera.
Business Profit Tax
Also known as corporate income tax, this applies to trade agents such as businesses, companies, etc. in the industry sector. A corporation is said to be resident if it was established within the state under the Companies Act, or if its management is carried out in Sudan in a given tax year. Establishments that are residents pay tax on their global income, while non-resident firms are charged for revenues obtained from a Sudanese source only.
Corporate tax rates depend on the type of activity a company engages in. It is levied at the following rates:
| Item | Tax Rate |
| Agriculture | 0% |
| Manufacturing and real estate | 10% |
| Commercial and services activities | 15% |
| Oil and gas services | 35% |
| Oil and gas distribution | 15% |
| Mining | 15% |
| Banks | 15% |
| Telecommunications | 30% |
Personal Income Tax
Also called Individual income tax, it is a type of tax that is charged on the income earned by citizens. It depends on the amount of gross salary and has a rate of 15 percent after the exempted salary is deducted.
Withholding Tax
There is no withholding tax for dividends. They are charged a stamp duty of 1% instead. However, interests paid to non-residents and royalties payments warrant a 15% WHT. when non-resident subcontractors receive money from resident firms for interest and other services, they are charged a 7 percent WHT. All imports paid for by a resident establishment are levied a 2 percent withholding tax. Payments between resident firms and a branch of a foreign business here are liable to a 5% creditable withholding tax.
| Item | Tax rate |
| Cigarette and tobacco firms | 2% |
| Withholding tax royalties | 15% |
| The interest rate on loans and other foreign transfers | 15% |
| Capital gains from the purchase of shares, bonds, and capital assets | 15% |
| Final tax for the non-resident organizations rendering services | 7% |
| Management fee | 15% |
Value Added Tax (VAT)
VAT is a form of indirect tax charged at a 17 percent fixed rate. However, a 30% special rate applies to telecommunications services. VAT is taxed on the sales of almost all goods and the provision of services, including imports. The following are tax-exempted:
- Local agricultural products in their original form
- Livestock, poultry, and animal products
- Wheat flour
- Bread
- Goods imported under the treaty exemption agreement
- Financial services
- Insurance services
- Education services
- Medical services
- Rents and sale of real estate to residents
Stamp Duty
There are lots of stamp duty rates, which are dependent on the kind of item in question. The rates are nominal.
