Taxes in Sudan

The Sudan Taxation Chamber, also known as ديوان الضرائب, administers taxation together with its state and locality offices. The Ministry of Finance and Economic Planning, Customs and competent administrative courts also have defined roles. The formal system is based mainly on the Income Tax Act 1986 and later amendments, the VAT Law 2001 and its regulations, the Income Tax Regulations 2021 and 2022, and rules on capital gains and stamp duty. Zakat is a separate Islamic levy; it belongs in a tax review only where its treatment affects the specific obligation being assessed. The assessment year covers 12 months beginning on 1 January after the relevant 12-month basis period. An individual is generally resident when present in Sudan for at least 183 days in the basis period, or when presence in that period together with the two preceding basis periods exceeds 12 months. A company is resident when its control or management is in Sudan. Residents are generally assessed on Sudanese and foreign-source income, while non-residents are assessed on Sudan-source income. Income tax can apply to salaries, wages, cash and in-kind employment benefits, rent, business profits, royalties and other taxable income. Personal income tax is progressive, with reported rates ranging from 0% to 15%. Rental income has reported progressive rates ranging from 0% to 10%. The exact brackets and amounts require the current official schedule because later amendments can change a legacy schedule. Employers withhold tax from local and foreign employees and remit it by the 15th day of the following month. They also make an annual payroll adjustment and withhold on board remuneration. Payroll records should generally be kept for at least five years. Business profits tax applies to net profits from commercial, industrial and service activities and can also cover mining, petroleum, natural resources, agriculture, brokerage, royalties and rent. A 2024 jurisdiction profile reports rates of 15% for industrial, trading, real-estate rental, insurance, fund-management and service activities; 7% for telecommunications; 30% for banks; 40% for tobacco; and 35% for oil, gas and subcontractors. Tax-exempt projects may face a 5% social-development levy. These reported rates remain subject to later amendments and current Taxation Chamber notices. A business can generally deduct necessary activity costs supported by records, actual expenses, rent, depreciation, legal and professional costs, and salaries subject to personal income tax. Zakat may be deductible when proof is available. Business profits tax, interest on the owner's capital, an owner's or partner's salary except approved management remuneration, and costs connected with exempt activities are generally not deductible. VAT is charged at a reported standard rate of 17% on local and imported goods, services and works. Imports are subject to VAT at Customs clearance, and the importer is liable regardless of turnover. A producer, trader or service provider generally registers after reaching the applicable threshold; a 2024 profile reports a threshold above SDG 1,200,000, which should be checked against the current notice. Importers and exporters register regardless of that threshold. Voluntary registration is possible, but cancellation is generally unavailable for less than two years. VAT-registered businesses file a monthly Form 3 return within 15 days after the accounting month, including a nil return, and pay the amount due by the required method. Eligible local and imported business inputs can generate input credit, with excess generally carried forward. Tax invoices or manifests should be sequential and show the date, TIN, parties, goods or services, rate and total. Purchases, sales, returns, exports, stock and FIFO records support the return. Exempt supplies include unprocessed agricultural products, livestock and meat, poultry and eggs, unprocessed fish, domestic milk, fertilizers, medicines, seeds and agricultural inputs, local flour and bread, certain diplomatic or agreement-related imports, traveller effects, financial and insurance services, education and medical services. Exports can receive zero-rating and input-tax refunds under the applicable rules. The e-invoice system resumed on 4 May 2026, so current official files and technical requirements should be checked before electronic filing. Capital gains tax can apply to net gains from land, buildings, agricultural land, shares or securities, and motor vehicles. The gain is calculated after the acquisition or construction cost, improvements and sale costs. Schedule II of the Capital Gains Act reports a rate of 2% of the gain. A clearance certificate is needed before registration or transfer of a capital asset. Limited exemptions can cover disposals by government or public bodies and qualifying replacement housing. A person carrying on taxable activity generally submits a registration request within 30 days. An employer registers employees within one month. Changes, cessation and temporary cessation are generally notified within one month. One TIN is used across taxes, including customs. A taxpayer can request an itemized account statement, normally available within seven days. Income books may be manual or electronic and should be kept in Arabic or English for at least six years. The Chamber's tax records are generally retained for ten years, while records connected with cancelled VAT registration and invoices have a shorter reported retention period of two years. Where self-assessment applies, the taxpayer submits the return in writing, by email or through an approved electronic channel and pays the tax due with the return. A periodic extension can reach 15 days and an annual extension one month. The request should normally arrive at least ten days before the deadline, and silence is treated as rejection. If the taxpayer does not self-assess or keep the required records, the authority can issue an administrative assessment. An audit notice normally allows up to 15 days, and a field audit can last up to four months with a justified extension of up to another four months. Preliminary comments are generally due within 15 days, or seven days in refund cases, and the final review generally follows within one month after comments. A taxpayer has rights to notice, a reasoned assessment, account access, representation, refunds and eligible input credits. The taxpayer carries the burden of proving that a return is accurate. VAT appeals generally go to the Secretary-General within 30 days and require payment of 25% of the assessed tax, or a lower amount set by the Secretary-General. Income tax appeals generally go to the Income Tax Committee within 15 days with payment of 35%. The competent administrative court can hear the relevant further appeal, commonly within 30 days. Capital-gains appeals begin with the Secretary-General within 30 days and can proceed to the Committee and court within the applicable 30-day periods. Late filing, late payment, non-registration, false records or invoices, unlawful deductions and unlawful refunds can trigger interest, financial penalties and other sanctions. VAT evasion can lead to imprisonment of up to three years, a fine or both. Authorities can attach goods, assets or bank balances, and imported goods are released only after the required VAT and customs payments. A public auction can follow within the applicable period, reported as up to 30 days. Cross-border payments require separate review. Reported withholding rates include 1% on resident government payments, 2% on imports, 5% advance withholding on resident subcontractors, 15% on royalties, 10% on consultancy, 7% on non-resident interest, 15% on non-resident royalties, 15% on management or professional fees and 0% on dividends. Sudan has published double-tax agreements with the United Arab Emirates, Kuwait, Indonesia, Iraq, Bahrain, Tunisia, Oman, India, Qatar, Türkiye, Syria, China, Jordan, Malaysia, Iran and the United Kingdom. Treaties can allocate taxing rights, limit withholding, define a permanent establishment, permit foreign-tax credits, provide a mutual agreement procedure and support information exchange. The agreement's applicability and effective date must be checked for the specific payment. The Taxation Chamber has reported data recovery, operations through safer states, migrated files and coordination with state offices. The legal tax rules are national, but access and processing can vary by state and locality. For 2025 income returns, the reported official deadline was 14 April 2026; displaced taxpayers could file through a current safe-area tax office. Import VAT and customs are generally paid immediately at clearance, while VAT and payroll obligations recur monthly. No reliable general registration fee was identified; the financial burden normally consists of the tax base multiplied by the applicable rate, plus any applicable penalties, interest or required prepayments.