Accounting and tax

1. All companies are subject to corporate tax in Sudan, at rates of i) 0% for agriculture activities ii) 10% for industrial activities and iii) 15% for financial and commercial activities. Tax returns are due within 3 ½ months after the end of the year and failure to do so subjects the company to a penalty of up to 3 times the total tax due;
2. The Value Added Tax (VAT) in Sudan is imposed at a standard rate of 17%. All companies in Sudan must register for VAT and submit monthly returns, by the 15th of the following month;
3. The capital gains tax in Sudan is levied at rates of i) 5% on gains from sale of real estate or ii) 2% on sales of other types of assets;
4. Companies are allowed to carry forward their business losses for a period not exceeding 5 years. A carryback of losses is however not allowed;
5. Royalties paid to non-resident companies in the Sudan are subject to a 15% withholding tax;
6. Companies in Sudan are subject to a 7% withholding tax imposed on interest remittances to non-resident companies;
7. Payments made by companies resident in Sudan to branches of foreign entities are subject to a withholding tax rate of 5%;
8. Employers are required to submit a social security contribution of 17% of their Sudanese employees’ monthly gross salary;
9. Sudan companies held by Muslim shareholders are subject to zakat tax levied on the company’s capital assets at a rate of 2.5%;
10. Sudan resident companies are subject to a 2% withholding tax on import of goods;
11. Sudan has concluded a number of double tax treaties with different countries including the United Kingdom, China, Malaysia, UAE and Bahrain among others;
12. Finally, 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;
13. 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.