Verified Facts
The tax rates in Sudan range from 0% to 15% for individual income tax, with a corporate tax rate of 15%, a value-added tax (VAT) rate of 17%, and a capital gains tax that is included in the income tax brackets.
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
Sudan has a territorial taxation system, which means that only income earned within the country is subject to tax, regardless of the taxpayer's residence. However, individuals who are considered tax residents of Sudan are also subject to tax on their worldwide income, with certain exceptions. To be considered a tax resident, an individual must have a permanent home in Sudan, or have been present in the country for more than 182 days in a calendar year. The tax year in Sudan runs from January to December, and taxpayers are required to file their tax returns by the end of March of the following year.
The Sudanese tax system is based on a self-assessment approach, where taxpayers are required to calculate their own tax liability and file their tax returns with the Ministry of Finance. The tax authority may conduct audits to verify the accuracy of tax returns, and penalties may be imposed for non-compliance or underpayment of taxes. Taxpayers who are unsure about their tax obligations or need assistance with tax compliance can consult with a qualified tax professional or contact the Ministry of Finance for guidance.
Personal Income Tax
| Income Bracket (SDG) | Tax Rate |
|---|---|
| 0 - 15,000 | 0% |
| 15,001 - 30,000 | 5% |
| 30,001 - 50,000 | 10% |
| 50,001 - 100,000 | 12% |
| 100,001 and above | 15% |
| Taxpayers in Sudan are entitled to certain deductions and allowances, such as a personal allowance of SDG 10,000, and deductions for medical expenses, charitable donations, and mortgage interest. Tax returns must be filed electronically, and payment of taxes can be made online or through authorized banks. It is essential for taxpayers to keep accurate records of their income and expenses, as well as any supporting documentation for deductions and allowances claimed. |
Corporate & Business Tax
- The corporate tax rate in Sudan is 15%, applicable to all businesses, including foreign companies with a permanent establishment in the country.
- Small businesses with an annual turnover of less than SDG 1 million are exempt from corporate tax, but are required to pay a small business tax of 5% on their profits.
- Companies operating in free zones are exempt from corporate tax for a period of 10 years, and are also exempt from customs duties and other taxes.
- Businesses are required to register with the Ministry of Finance and obtain a tax identification number before commencing operations.
- Companies must also maintain accounting records and file annual tax returns, which must be audited by a certified auditor.
VAT / Sales Tax
- The standard VAT rate in Sudan is 17%, applicable to most goods and services.
- A reduced VAT rate of 10% applies to certain essential goods, such as food, medicine, and education services.
- Certain goods and services are exempt from VAT, including financial services, healthcare services, and rental income.
- Tourists are entitled to a VAT refund on certain purchases, such as hotel accommodation and tourist services, provided they have a valid passport and a receipt for the purchase.
For Expats & Foreign Workers
- Expatriates who are considered tax residents of Sudan are subject to tax on their worldwide income, but may be entitled to double taxation relief under a tax treaty between Sudan and their home country.
- Foreign workers are required to register with the tax authority and obtain a tax identification number, and must file a tax return by the end of March of each year.
- Expatriates may be exempt from social security contributions, but are still required to pay health insurance premiums.
- Remittances of foreign currency are subject to exchange control regulations, and may require approval from the Central Bank of Sudan.
- Expatriates who are employed by a foreign company may be exempt from Sudanese income tax, but are still required to file a tax return and report their income.
Crypto & Investment Income
- Investment income, such as dividends, interest, and rents, is subject to income tax, and must be reported on the taxpayer's annual tax return.
- Capital gains are included in the income tax brackets, and are subject to tax at the applicable rate.
- Cryptocurrency is considered a commodity for tax purposes, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Foreign investment income, such as dividends and interest, may be exempt from tax in Sudan, but may be subject to withholding tax in the country of source.