Tax incentives for investment

Who this is for

Businesses and investors registered in Sierra Leone. Some incentives depend on Sierra Leonean ownership, workforce size or the amount invested; others depend on the sector.

What you may be entitled to

• Exemption of group dividend income

  Dividend received by a company from another resident company, including a company within a group, is exempt from taxation.

  Section 84 of Income Tax Act 2000 (as amended)

• Corporate tax exemption for businesses with Sierra Leonean ownership

  A business registered in Sierra Leone with at least 20% Sierra Leonean ownership as of 1 January 2015 and beyond is entitled to corporate tax exemption: for five years if its full-time workforce is at least 100 employees and minimum investment is USD 5,000,000; for ten years if its workforce is at least 150 employees and minimum investment is USD 7,500,000.

  Section 24 of Finance Act 2014

• Relief for small and medium enterprises

  A small or medium enterprise established between 1 January 2021 and 31 December 2023 is eligible for tax relief on income derived in the first year of business operations.

  Section 45 of Finance Act, 2021

• Employment of disabled persons

  200% of the actual cost of remuneration payable to physically or mentally disabled employees is deducted from taxable profits, up to the extent of the profits of the year in which the expenditure is made. Any unclaimed amount is not available for future deductions.

  Section 21 of Finance Act 2011

• Donation to the Skills Development Fund

  An investor who donates to the Skills Development Fund is eligible for 100% deduction of the donation from profits in the same year the donation is made. Any unclaimed amount is not available for future deductions.

  Section 25 of Finance Act 2014

• Investment in social services

  Expenses on social services — such as building schools and hospitals, and investment outside the scope of the original investment that is available to the general public free of charge — are eligible for deduction from profits of 100% of the cost incurred, up to the extent of profits.

  The investment must be approved by the relevant MDA.

  Section 16 of Finance Act 2011

• Female managerial employment promotion

  An incentive applies to the promotion of women into managerial employment.

  Section 38 of Finance Act 2016

What to bring

• Taxpayer Identification Number1 copy · from NRA
• Business registration certificateoriginal · 1 copy · from OARG
• Records evidencing the qualifying investment, workforce or donation1 copy

What to do

1. 1Register your business and obtain a Taxpayer Identification Number.
2. 2Identify which incentives your investment qualifies for under the provisions listed on this page.
3. 3Where an incentive requires approval, obtain it from the responsible MDA before claiming.
4. 4Claim the relief in your tax return and keep the supporting records.at National Revenue Authority