Employer Tax Contributions

Tax Type	Rate	Base
PAYE (Income Tax)	Progressive (0%-30%)	Employee's taxable income
NASSIT (Social Security)	10% (Employer), 5% (Employee)	Employee's basic salary
Payroll Tax (Expatriate)	SLL 500,000 (ECOWAS Citizens), SLL 3,000,000 (Non-ECOWAS Citizens)	Per expatriate employee annually

Filing & Compliance

• Monthly PAYE and NASSIT contributions must be remitted by the 15th day of the following month.
• Employers must file monthly returns detailing gross pay, deductions, allowances, and tax/NASSIT contributions for each employee.
• Annual PAYE returns, summarizing total emoluments and tax withheld, are typically due by March 31st of the following year.

In Sierra Leone, employers deduct Pay As You Earn (PAYE) tax, also known as Personal Income Tax (PIT), from employee salaries and remit it to the National Revenue Authority (NRA).

PAYE (Personal Income Tax)

The PAYE system follows a progressive tax structure, meaning higher earners pay a larger percentage of their income in tax. The first SLL 600 of an employee's monthly salary is tax-exempt. Any income above this threshold is taxed according to the corresponding tax bands. For example, if an employee earns SLL 800, the first SLL 600 is exempt, and the remaining SLL 200 is taxed at the lowest tax band rate. Allowances above SLL 500 are also considered part of taxable income.

Payroll Tax

Employers of foreign nationals in Sierra Leone pay an annual payroll tax. The amount is SLL 1,500,000 for ECOWAS citizens and SLL 5,000,000 for non-ECOWAS citizens.

National Social Security and Insurance Trust (NASSIT) Contributions

Both employers and employees contribute to NASSIT. Employees contribute 5% of their basic salary, while employers contribute 10%.

Tax Administration

Employers must deduct PAYE and NASSIT contributions from employee salaries each payday and remit them to the NRA by the 15th of the following month.

Tax Year and Filing

Sierra Leone's tax year aligns with the calendar year, running from January 1st to December 31st. Employers are responsible for year-end tax reporting, including filing necessary documentation with the NRA. Penalties apply for non-compliance, late filing, and late payment.

Tax Incentives and Exemptions

Various tax incentives and exemptions exist for specific sectors and investments. These can include exemptions on income tax, customs duties, and other taxes, and are generally aimed at promoting economic development. It is advisable to consult with the NRA or relevant government bodies for details about specific incentives or exemptions that may apply to your situation.

Fringe Benefits

Fringe benefits provided by employers, such as housing, vehicles, meals, and domestic staff are considered taxable income. These are typically taxed based on their market value or a scaled value as outlined in the Income Tax Act 2000.

It is important to note that this information pertains to the 2025 tax year in Sierra Leone. While no new taxes are expected for the current year, tax laws and regulations can change, so keeping up-to-date with the latest information from official sources is crucial.