Taxes in South Sudan

The South Sudan Revenue Authority (SSRA) administers the national tax system under the Taxation Act, Customs Service Act and applicable Financial Acts. Its Domestic Tax Division handles domestic taxes and its Customs Revenue Division handles customs revenue. The Bank of South Sudan supports collection through designated banks and remittance channels. State Revenue Authorities and city councils may collect separate taxes, licences, levies and service charges, so a business can face obligations at national, state and city level. The SSRA Act provides for a one-stop framework and harmonisation, but multiple charges remain a practical risk, especially in importing and trading. Personal income tax applies to taxable income from employment, business activity, rent, interest, dividends, capital gains, gambling winnings and other increases in net worth. A resident individual is generally taxed on South Sudan-source and foreign-source income, while a non-resident is generally taxed only on South Sudan-source income. For FY 2024/25, the monthly personal income tax bands are 0% up to SSP 20,000, 5% from SSP 20,001 to 40,000, 10% from SSP 40,001 to 57,000, 15% from SSP 57,001 to 90,000 and 20% above SSP 90,000. A standard expense deduction of 20% applies, and employee pension contributions may be deductible up to 5% of gross wages. Rental and investment income is subject to a 20% rate under the applicable schedule. Companies whose activity is exclusively real estate face a 30% rate under FY 2024/25 rules, which creates a classification issue for property businesses. Business profit tax is calculated from gross income less allowable expenses. The verified FY 2023/24 rate was a 30% flat rate for small, medium and large businesses, and the reviewed FY 2024/25 material does not show a different basic rate. A resident business is generally taxed on South Sudan and foreign-source income, while a non-resident business is generally taxed on South Sudan-source income. Related-party transactions should follow the arm's-length principle. Foreign-currency amounts are converted into South Sudanese pounds at the prevailing market rate. Certain public-benefit NGOs, the Bank of South Sudan, some dividends and interest already subject to withholding tax, and specified UN or donor contract income may be exempt when the legal conditions are met. Withholding tax is collected by an employer or other payer before payment reaches the recipient. Employers withhold on wages, and payers generally withhold 10% on dividends, interest and royalties. Government-contract withholding tax depends on the payment type and the current schedule. Withheld amounts are normally remitted within 15 days after the end of the month; withholding exceeding SSP 300,000 requires accelerated remittance within five business days. The payer must also submit the required withholding statement. Imported goods are subject to customs duty, sales tax and other applicable charges. For FY 2024/25, an advance business profit tax of 4% applies to imported goods regardless of whether they are food or non-food. The verified sales-tax schedule applies 20% to imported goods and 1% to 20% to produced goods depending on the goods category; hotels, restaurants and bars are subject to 20% sales tax. Excise duty applies to specified goods or services. Customs value is based on CIF, meaning cost, insurance and freight, and payment is generally required at entry or customs clearance before release at designated entry points. Exemptions can cover basic or unprocessed food under the applicable rule, bona fide humanitarian aid, UN or donor goods, travellers' personal goods and used household effects. Duty Tax Stamps apply to products such as alcohol, beverages, water, tobacco and confectionery. The reviewed material confirms a sales-tax system but does not establish a separate general VAT-registration routine. A taxable person or withholding agent should register before starting business or before the first payment that creates a tax obligation. Registration provides a Tax Identification Number (TIN), which identifies the taxpayer on returns and transactions, and a registration certificate. The eTax service accepts applications from citizens, foreigners, businesses and NGOs. Citizens generally provide a National ID number, telephone number and email address; foreigners provide a passport, alien registration, work permit, telephone number and email address. Businesses provide Ministry of Justice validation, a business registration number and the director's TIN. NGOs provide registration from the Ministry of Humanitarian Services. The TIN application and filing fee is zero. Changes to registered details must be reported within 15 days, and the certificate must be displayed at the business premises. A Tax Compliance Certificate is issued through eTax. Tax returns use self-assessment. The annual final return and payment are generally due by 1 April of the following year. Statutory advance-payment dates are 15 April, 15 July, 15 October and 15 November. A taxpayer may request a two-month filing extension before the deadline and must pay the estimated tax, but the payment deadline remains unchanged and interest continues to run. A payment extension may last up to six months. Books and supporting records must be kept in South Sudan for six years. The SSRA may investigate, audit and assess a taxpayer when a return is missing, incorrect or understated. Collection measures can include seizure, demands to banks and public auction, and a departure restriction may apply when collection is at risk. Late penalties and interest apply under the relevant Financial Act or notice, so the current notice should be checked rather than relying on an older rate. A taxpayer can challenge a contested action before the Appeals Board within 30 days. The taxpayer bears the burden of proof. The Board should decide within 60 days; a decision not issued within that period is treated as favourable to the taxpayer. A further appeal to the High Court must generally be filed within 15 days and is limited to jurisdiction, law or evidence. International tax treatment depends on residence, source and any applicable agreement. South Sudan generally taxes residents on worldwide income and non-residents on South Sudan-source income. A resident business with a foreign permanent establishment may receive a foreign tax credit where reciprocal treatment exists. An applicable treaty or international agreement prevails over conflicting domestic rules, but the reviewed sources did not verify a current South Sudan double-tax agreement. A taxpayer should therefore confirm the current Financial Act, SSRA notice and any agreement before relying on a reduced rate or exemption. FY 2025/26 measures should not be used until the relevant Financial Act has received presidential assent and its operative status is confirmed.