Sierra Leone legal and accounting and tax considerations in 2024

1. Corporate income tax in Sierra Leone is imposed at a standard rate of 30%. All legal entities must i) register for taxes at the National Revenue Authority (NRA) ii) obtain a Tax Identification Number (TIN) and iii) file annual returns within 4 months following the end of the fiscal year;
2. Goods and Services Tax (GST) or the Value Added Tax (VAT) is levied in Sierra Leone at a standard rate of 15% on the sale of goods and services. All trading companies must register for GST and file monthly returns;
3. A 10% withholding tax is applicable on dividends paid to non-resident companies doing business in Sierra Leone;
4. Other withholding taxes in Sierra Leone include i) 15% withholding tax on interests and ii) 25% withholding tax on royalties paid to both resident and non-resident companies;
5. In addition the standard corporate income tax rate of 30%, branches of foreign companies are subject to a 10% tax applicable on the income repatriated abroad;
6. Employers in Sierra Leone are obliged to submit a monthly social security contribution of 10% of their employees monthly remunerations to the National Social Security and Insurance Trust (NASSIT);
7. Companies in Sierra Leone are permitted to carry forward their business tax losses for a period of 5 years, a carryback of losses is however not allowed;
8. Republic of Sierra Leone has so far entered in double taxation treaties with at least 5 countries namely i) South Africa ii) United Kingdom iii) Norway iv) India and v) Denmark;
9. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
10. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.