Sierra Leone Corporate Income Tax

Corporate income tax rates, base and withholding

Resident and non-resident companies are taxed at 30% on Sierra Leone taxable income under the Income Tax Act 2000, with reduced rates for certain sectors. Withholding tax applies to a range of payments and acts as a final or creditable tax depending on the payment type.

• Standard corporate income tax rate — 30% percent (Income Tax Act 2000)
• Non-resident company rate — 30% on Sierra Leone-source taxable income percent (Income Tax Act 2000)
• Mining company rate — Generally 30% (subject to mining-specific regimes and agreements) percent ((approx — confirm)) (Income Tax Act 2000)
• Agriculture / qualifying sector incentive — Reduced rates and tax holidays available for approved agriculture and priority-sector investors ((approx — confirm)) (Income Tax Act 2000)
• Minimum/turnover tax — A minimum tax of around 3% of turnover may apply to companies in a loss or low-profit position percent ((approx — confirm)) (Income Tax Act 2000)
• Tax base — Accounting profit adjusted for tax (non-deductibles added back, capital allowances and exempt income deducted) (Income Tax Act 2000)
• Withholding tax on dividends — 15% (resident and non-resident) percent (Income Tax Act 2000)
• Withholding tax on interest — 15% (resident and non-resident) percent (Income Tax Act 2000)
• Withholding tax on royalties — 15% (resident and non-resident) percent (Income Tax Act 2000)
• Withholding tax on rent — 10% resident; 15% non-resident percent (Income Tax Act 2000)
• Withholding tax on management/professional fees — 15% (resident and non-resident) percent (Income Tax Act 2000)
• Withholding tax on contractors (goods & services) — 6.5% resident; 11.5% non-resident percent (Income Tax Act 2000)
• Contractor WHT threshold — WHT on supplier/contractor payments applies above NLe 500 in the month of payment NLe ((approx — confirm)) (Income Tax Act 2000)
• Annual return deadline — Within 120 days of year end (by 30 April for a calendar-year company) ((approx — confirm)) (Income Tax Act 2000)
• Provisional tax instalments — Quarterly provisional tax instalments are payable during the year, with final balance on filing ((approx — confirm)) (Income Tax Act 2000)