Verified Facts
The tax rates in South Sudan range from 10% to 20% for personal income tax, with a corporate tax rate of 20% and a value-added tax (VAT) rate of 18%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
South Sudan has a territorial taxation system, where only income earned within the country is subject to tax, except for residents who are taxed on their worldwide income. To be considered a resident for tax purposes, an individual must have a permanent home in South Sudan, or have been present in the country for at least 183 days in a calendar year. Non-residents are only taxed on income earned from sources within South Sudan.
The tax system in South Sudan is governed by the Taxation Act of 2009, which outlines the various taxes applicable in the country, including income tax, corporate tax, and value-added tax. The Act also provides for the establishment of the National Revenue Authority, which is responsible for the administration and collection of taxes in South Sudan. The Authority is also responsible for providing guidance and support to taxpayers, as well as enforcing tax compliance.
Personal Income Tax
| Income Bracket (SSP) | Tax Rate |
|---|---|
| 0 - 100,000 | 10% |
| 100,001 - 200,000 | 15% |
| 200,001 - 500,000 | 18% |
| 500,001 - 1,000,000 | 20% |
| above 1,000,000 | 20% |
Personal income tax in South Sudan is levied on an individual's taxable income, which includes employment income, business income, and investment income. Taxpayers are allowed to claim deductions for expenses such as rent, utilities, and medical expenses, as well as allowances for dependents and disabilities. Tax returns must be filed annually by the end of March, and taxpayers can file online or through a tax agent. It is also important to note that tax exemptions are available for certain types of income, such as income earned by diplomats and international organizations.
Corporate & Business Tax
- The corporate tax rate in South Sudan is 20%, applicable to all businesses, including companies, partnerships, and sole proprietorships.
- Small business incentives are available for businesses with an annual turnover of less than 1 million SSP, which are exempt from corporate tax for the first two years of operation.
- Free zones have been established in South Sudan to attract foreign investment, where businesses are exempt from corporate tax and other taxes for a period of up to 10 years.
- Registration requirements for businesses in South Sudan include registration with the National Revenue Authority, as well as obtaining a business license from the relevant authorities.
- Businesses are also required to withhold tax on payments made to non-residents, including dividends, interest, and royalties.
VAT / Sales Tax
- The standard VAT rate in South Sudan is 18%, applicable to most goods and services, including imports.
- Reduced rates of 10% and 5% are applicable to certain goods and services, such as basic food items and pharmaceuticals.
- Exemptions are available for certain goods and services, such as education and healthcare services, as well as for exports.
- A tourist refund scheme is available for tourists who purchase goods and services in South Sudan, where they can claim a refund of the VAT paid on their purchases.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers in South Sudan are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
- Double taxation treaties have been signed by South Sudan with several countries, including Sudan, Ethiopia, and Uganda, to avoid double taxation of income.
- Social security contributions are payable by employers and employees in South Sudan, at a rate of 10% of gross salary.
- Remittance rules require foreign workers to remit their income earned in South Sudan to their home country, subject to certain exemptions and restrictions.
- Expats and foreign workers are also required to register with the tax authorities and obtain a tax identification number.
- Work permits are required for foreign workers in South Sudan, and are typically issued for a period of up to two years.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to tax in South Sudan, at a rate of 20%.
- Cryptocurrency is not specifically regulated in South Sudan, but is subject to tax as a form of investment income.
- Dividends received by shareholders are subject to a withholding tax of 10%, which is deductible from the corporate tax payable by the company.
- Capital gains tax is payable on the sale of assets, including shares, property, and other investments, at a rate of 20%.