Sierra Leone

The Sierra Leone work week is generally 40 hours.

Overtime is paid at an additional 50%. Work on rest days is paid at an additional 100%.

Severance: Severance pay is between 30 and 40 days per year served

Sierra Leone operates a worldwide system of taxation of income and capital gains (with some exceptions), under which resident individuals are taxed on their worldwide income. Non-residents are taxed only on Sierra Leone-source income. A permanent resident is assessed on income from all sources, less allowable deductions. A temporary resident is assessed on income earned outside Sierra Leone and remitted to Sierra Leone, plus the taxpayer’s assessable income within Sierra Leone, less allowable deductions. Non-cash benefits granted to an employee by the employer are included in employment income. Income tax rates are progressive up to 30%. For individuals receiving employment income, there is a non-taxable allowance threshold of SLL6 million per year or SLL500 000 per month. Non-residents pay tax at a flat rate of 25%.

Taxable Income (SLL) Per Annum          Taxable Income (SLL) Per Month     Rate

Less or equal to 6 million                                        First 500 000                            Nil

Next 6 million – 12 million                                     Next 500 000                           15%

Next 12 million – 18 million                                   Next 500 000                           20%

Next 18 million – 24 million                                   Next 500 000                           25%

Above 24 million                                                    Above 2 million                      30%

The employer and the employee contribute 10% and 5%, respectively, of the employee’s salary to the social security fund.

A non-taxable allowance threshold of SLL6 million per year or SLL500 000 per month is available

In place of a value added tax, Sierra Leone assesses a goods and services tax (GST). A consumption tax known as GST is levied on most products, services, and taxable imports that are provided by registered enterprises. Applying the rate to the GST-exclusive value of the taxable supply or import yields the amount of GST due, as shown below: If the supply or import is zero-rated, the rate is 0%; if it is standard-rated, the rate is 15%.

Withholding tax is collected by a registered taxpayer at source. Tax collected via withholding must be paid over to the National Revenue Authority (NRA) by the payer of the income by the 15th day of the month following the month in which the tax was withheld. If a person is employed to provide construction, transportation, management or any other services, and the payment for these services exceeds SLL500 000 in a month, tax must be deducted at a rate of 5.5% if the individual is a resident and 15% if the individual is a non-resident. If goods also are supplied, the WHT applies to the price of the goods.

Payment                                                                Residents         Non-residents

Dividends                                                              10%                 10%

Payment to contractors                                            5%                   10%/15%

Interest                                                                   15%                 15%

Rental income                                                        10%                 25%

Royalties                                                                25%                 25%

Pensions and annuities                                            15%                 25%

Natural resources payments                                     25%                 25%

Real property                                                         10%    

Winnings of SLL500 000 and above                        10%    

Payments for benefit of non-resident beneficiaries    25%