Sierra Leone Investment Income Guide 2026

Overview — Investment Income Taxation

Sierra Leone taxes investment income through withholding taxes at source for most passive income streams. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The National Revenue Authority administers all withholding tax under the Income Tax Act.

Dividends — WHT

Dividends paid by Sierra Leone-resident companies are subject to withholding tax. This is generally a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive income tax assessment. For corporate shareholders, the WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate may be reduced under applicable double tax treaties.

Interest Income

Interest income is taxed at different rates depending on the source:

• Bank deposit interest — subject to withholding tax
• Government securities — Treasury bills and bonds subject to WHT
• Corporate bonds — interest payments subject to WHT

The withholding tax on interest may be final for individual taxpayers or creditable for corporate taxpayers.

Capital Gains on Investments

Capital gains from the disposal of investments are generally subject to tax in Sierra Leone. Gains from the disposal of shares listed on the Sierra Leone Stock Exchange may qualify for exemptions or reduced treatment. Government securities are generally exempt from CGT.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the WHT on dividends is generally final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Sierra Leone?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the WHT deducted exceeds the final tax liability, you can claim a refund from NRA by filing an annual return.

Disclaimer

This guide provides general information about Sierra Leone investment income taxation 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.