Sierra Leone Personal Income Tax

Personal income tax (PAYE) bands and rates

Resident individuals pay tax on a progressive scale collected mainly through PAYE. The figures below are monthly New Leone (NLe) thresholds; equivalent annual figures are shown where useful. Values were sourced from NRA guidance and Sierra Leone payroll guides and should be confirmed against the current Finance Act.

• Tax-free band (monthly) — First NLe 600 per month taxed at 0% NLe (Income Tax Act 2000)
• Second band (monthly) — Next NLe 600 (NLe 601–1,200) taxed at 15% percent (Income Tax Act 2000)
• Third band (monthly) — Next NLe 600 (NLe 1,201–1,800) taxed at 20% percent (Income Tax Act 2000)
• Fourth band (monthly) — Next NLe 600 (NLe 1,801–2,400) taxed at 25% percent (Income Tax Act 2000)
• Top band (monthly) — Income above NLe 2,400 per month taxed at 30% percent (Income Tax Act 2000)
• Annual tax-free threshold — First NLe 7,200 per year taxed at 0% NLe ((approx — confirm)) (Income Tax Act 2000)
• Non-resident employment income — Taxed at a flat 25% (withheld at source) percent (Income Tax Act 2000)
• Residence test for individuals — An individual is resident if present in Sierra Leone for 183 days or more in the tax year, or is a government official posted abroad ((approx — confirm)) (Income Tax Act 2000)
• Tax-free allowances cap — Allowances exceeding NLe 500 per month are included in taxable income and subject to PAYE NLe (Income Tax Act 2000)
• NASSIT relief — Employee NASSIT contributions (5%) are deductible before computing PAYE ((approx — confirm)) (National Social Security and Insurance Trust Act 2001)
• PAYE remittance deadline — Employer remits PAYE by the 15th of the following month (Income Tax Act 2000)
• Individual annual return — Self-assessment return due within 120 days of year end (by 30 April) for those with non-PAYE income ((approx — confirm)) (Income Tax Act 2000)