Sierra Leone | 2026 Finance Act

Sierra Leone | 2026 Finance Act

The Finance Act 2026, published in the Government Gazette Extraordinary Vol. CLXVII No.3 on 7 January 2026, introduces amendments to the Income Tax Act affecting payroll from 1 January 2026.

Personal Income Tax brackets and Social Security (NASSIT) contribution rates remain unchanged from 2025.

What is changing
Redundancy or termination payments
  • Any redundancy payment, payment for termination, loss of office or employment, or similar payment is fully exempt from employment income.
  • Previously, amounts were exempt up to SLE 50,000, with any excess taxed at 5%.
  • Reference: Section 23(3)(h) of the Income Tax Act 2000.

Withholding tax rates on payments to non-residents
  • Withholding tax on payments to non-resident contractors increases from 10% to 20%.
  • Withholding tax on management or professional fees paid to non-residents increases from 15% to 20%.
  • Payments covered under this provision are not treated as employment income.
  • The payer is required to withhold tax at source on the gross amount payable before making payment to the non-resident.
  • Reference: Second Schedule to the Income Tax Act 2000.

Official source
Click here to access the official publication.

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