Tax in Sierra Leone

Who is the tax authority and where do filings live?

Sierra Leone's National Revenue Authority (NRA) under the Ministry of Finance administers Sierra Leone's tax system [SC1]. NRA was established under NRA Act 2002. Substantive law: Income Tax Act 2000 (as amended), Goods and Services Tax Act 2009, Mines and Minerals Development Act 2009, and successive Finance Acts. Sierra Leone is an ECOWAS, Mano River Union (MRU), and AfCFTA member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. PAYE withheld monthly. Corporate annual returns due 30 April for prior fiscal year [SC1]. GST monthly returns. Provisional CIT through quarterly installments.

Who is a Sierra Leonean tax resident?

Under Income Tax Act 2000, an individual is tax resident if (a) ordinarily resident in Sierra Leone, OR (b) physically present 183+ days in tax year [SC2]. Residents taxed on worldwide income.

What are the personal income tax rates?

Progressive PAYE brackets: 0 percent up to NLE 7,500 monthly; ascending rates 15/20/30 percent ascending [SC1]. Top 30 percent above NLE 23,500 monthly. Personal allowance applies. NASSIT contributions 5 percent (employee) + 10 percent (employer).

How does Sierra Leone's corporate tax work?

CIT 25 percent flat for resident companies [SC2]. 30 percent for banking and petroleum sectors. Mining 25 percent + Royalty 0.5-15 percent (sliding scale by mineral). Withholding on dividends to non-residents 10 percent. Pillar Two not transposed. Tax losses 7 years.

What about GST?

Goods and Services Tax 15 percent under GST Act 2009 [SC3]. Zero-rated on exports.

How are cryptoassets taxed?

Bank of Sierra Leone advisory: cryptoassets cautioned [SC2]. Where declared, gains under existing income-tax categories.

What is the treaty network and what are the audit triggers?

Sierra Leone has approximately 4 active double tax treaties [SC4]. MLI not yet ratified. ECOWAS framework. Standard SOL 7 years; extended for fraud or for mining-sector matters.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) iron-ore and diamond-sector elevated framework with sliding-scale Royalty 0.5-15 percent under Mines and Minerals Development Act 2009; (2) post-2014 Ebola-recovery and post-2018 IMF-supported reform programmes affecting tax administration progressively; (3) banking/petroleum elevated 30 percent CIT vs general 25 percent; (4) Pillar Two not transposed; (5) very limited treaty network (4 DTCs); (6) MLI not yet ratified; (7) anglophone tradition; (8) ECOWAS and MRU member; (9) AfCFTA member; (10) NLE-denominated tax base (post-2022 currency redenomination from SLL); (11) Special Economic Zone (SEZ) framework progressively developing; (12) 2024 amendment of Income Tax Act for enhanced electronic-filing requirements.