Sierra Leone Corporate Tax Guide 2026
Sierra Leone's corporate income tax rate is 25% for resident companies, with a reduced rate of 10% for agricultural businesses. Companies are taxed on worldwide income if resident, or Sierra Leone-source income only if non-resident with a permanent establishment. The tax year is the calendar year. Annual returns are due within three months of the accounting year-end.
Overview — Corporate Tax in Sierra Leone
Corporate tax in Sierra Leone is governed by the Income Tax Act and administered by the National Revenue Authority (NRA). A company is tax resident if it is incorporated under Sierra Leone law or if its place of effective management is in Sierra Leone. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Sierra Leone-source income only. Companies must register for tax with NRA and obtain a Tax Identification Number (TIN).
Standard Corporate Tax Rate — 25%
The standard CIT rate for resident companies in Sierra Leone is 25% of chargeable profits. Non-resident companies with a permanent establishment are also taxed at 25% on Sierra Leone-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, capital allowances (depreciation), interest costs, and losses carried forward. Losses may be carried forward for up to 5 years.
Reduced Rate — Agriculture — 10%
Companies engaged in agricultural activities (crops, livestock, forestry, fishing) benefit from a reduced CIT rate of 10%. This incentive is designed to promote primary production and food security in Sierra Leone. To qualify, the company must derive at least 50% of its gross income from qualifying agricultural activities. Agricultural companies may also benefit from enhanced capital allowances and other incentives.
Capital Allowances (Depreciation)
Sierra Leone uses a capital allowance system rather than book depreciation for tax purposes. Rates vary by asset category:
- Plant & machinery — 10–20% per annum (declining balance)
- Industrial buildings — 10% per annum (straight-line)
- Motor vehicles — 20% per annum (declining balance)
- Computers & office equipment — 25% per annum (declining balance)
- Agricultural assets — 25–50% per annum
FAQs
What is the penalty for late filing of corporate tax returns?
Late filing attracts penalties and interest on unpaid tax as prescribed by NRA. Additional penalties may apply for failure to maintain proper records or for tax evasion.
Can foreign companies claim treaty relief?
Sierra Leone has a limited number of double tax treaties. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents.
Is there a minimum tax for loss-making companies?
Sierra Leone does not have a turnover-based minimum tax. Loss-making companies may carry forward losses for up to 5 years against future profits.
Disclaimer
This guide provides general information about Sierra Leone corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Sierra Leone tax advisor or the National Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.