Available Incentives in Sierra Leone

Agriculture Income Tax Exemptions

Income tax exemptions for 10 years from agricultural activities - rice farming and tree crop farming such as cocoa, coffee, oil palm.

Donor Support

Some renewable energy projects may qualify for investment incentives, as part of donor-funding projects. The discussion will be undertaken with Ministry of Energy officials.

Duty-Free Import

Duty-free import of agricultural inputs for a period of 5 years, and on plants and machinery, shall be entitled to duty-free import for three years.

Employment Tax Relief

Tax relief for the employment of expatriate staff for the purpose of tourism development may be obtained under the Payroll Tax Act.

Income Exemption

Exemption from income derived from investment in poultry, livestock, and ruminants business for a period of three (3) years, if the investment is at least USD 500,000 and fifty percent of any dividend paid for ten (10) years.

Income Tax Deduction

Income tax deductions: capital allowances on any asset utilized in the development of tourism shall be deducted from the profits or other income before tax in accordance with the law.

Import Tax Incentives for Quality Products

The importation of photo voltaic system equipment and low energy or energy-efficient appliances for resale or use by third parties shall be duty-free for a period of three (3) years starting from the date of registration. To benefit, an investor must

(a) invest a minimum of USD 500,000, 

(b) employ a minimum of 50 persons for that purpose, and 

(c) products must meet the relevant International Electrotechnical Commission (ICE) global standards

Any business assembling stoves and cookers and importing or producing liquid petroleum gas shall be entitled to import duty free for a period of three (3) years.

For solar and other renewable energy related products, there is an import duty exemption for persons and Institutions importing these items.

Income Tax Exemption

Any business registered in Sierra Leone and having, at least, 20% Sierra Leonean ownership shall be entitled to corporate tax exemption

(a) For a period of 5 years if its full-time workforce is at least 100 employees and the minimum investment is $5,000,000

(b) For a period of 10 years if its workforce is at least 150 employees and the minimum investment is $7,500,000.

Tourism Income Tax Exemption

The income from any undertaking under tourism is exempt from income tax for a period not exceeding five (5) years from the commencement of operations, and, in value, not exceeding one hundred and fifty percent of the original capital invested.

Duty-Free Importation

New and existing businesses importing plants and machinery, excluding spare parts and general purpose vehicles, exclusively for their business operations (and not for resale), shall be entitled to duty-free import for three years from the date of their first registration.

This shall apply:

(a) in the case of a new business if the investment is at least $10,000,000

(b) in the case of an existing business if the investment is at least $5,000,000 in expanding the business Income tax exemption*

Any business registered in Sierra Leone and having, at least, 20% Sierra Leonean ownership shall be entitled to corporate tax exemption

(a) For a period of 5 years if its full-time Workforce is at least 100 employees and minimum investment is $5,000,000.

(b) For a period of 10 years if its workforce is at least 150 employees and minimum investment is $7,500,000.

Fish farms comprising at least ten fish ponds and measuring at least 200 square metres shall be exempted from income tax on:

(a) income derived from any fish farming activity; and 

(b) 50% of any dividend paid as a result of these activities, for a period of five years.

*This provision on income tax exempt persons does not cover ratified Parliamentary agreements with the Government of Sierra Leone.

Private Sector Agricultural Incentives

As a priority for the Government to promote large-scale private sector investments, there are incentives granted. These include but not limited to:

• a foreign investor irrigating at least 500 hectares or cultivating least 2,500 hectares of land or investing at least US$1 million in livestock and livestock products; or
• a domestic investor irrigating at least 100 hectares or cultivating least 500 hectares of land or investing at least US$0.5 million in livestock and livestock products.
• exemption from corporate income tax plus, 50% exemption from withholding taxes on dividends paid by agribusiness companies
• Complete exemption from import duty on farm machinery, agro-processing equipment, agro-chemicals and other key inputs specifically for the project; 3-year exemption from import duty on any other plant and equipment; reduced rate of 3% import duty on any other raw materials
• 100% loss carry forward can be used in any year
• 125% tax deduction for expenses on Research & Development, training and export promotion
• 3-year income tax exemption for skilled expatriate staff, where bilateral treaties permit