The Republic of Sierra Leone is a Southwest coast country in West Africa, it is surrounded by Liberia and Guinea.
Tax consideration in Sierra Leone
The corporate income tax in Sierra Leone is at the standard rate of 30%. Legal entities are required to register for taxes at the National Revenue Authority (NRA) office, obtain a Tax Identification Number (TIN), and file annual returns within four months after the end of the financial year
A standard corporate income tax rate is 30%, and branches of foreign companies are subject to a 10% tax rate applied on the income repatriated abroad.
In Sierra Leone, the personal income tax rate is a tax collected from individuals, it is imposed on different sources of income like labor, pensions, interest, and dividends. The personal income tax in Sierra Leone has been an important source of income for the government, the personal income tax rate is 15%.
Value Added Tax
In Sierra Leone, value-added tax (VAT) also known as Goods and Services Tax (GST), is levied at the standard rate of 15% at the purchase of goods and services. The National Revenue Authority (NRA) ensures all trading companies register for GST in Sierra Leone.
Withholding Tax
A withholding tax for dividends paid to non-resident companies doing business in Sierra Leone is at the tax rate of 10%. Other withholding taxes include a withholding tax rate of 25% on royalties paid to both resident and non-resident countries and a withholding tax of 15% on interest.
Social security contributions
Social security contributions of 10% are remunerated monthly by employers, as an obligation for their employees to the National Social Security and Insurance Trust (NASSIT).
All companies in Sierra Leone are permitted to carry forward their business tax losses, this is for five years. A carryback of losses is not allowed though.
The Republic of Sierra Leone entered a double taxation treaty with about five countries; namely South Africa, the United Kingdom, Norway, India, and Denmark.
