Employer Tax Contributions

Tax Type	Rate	Base
Business Profit Tax	30%	Taxable profit
Sales Tax	20%	Manufactured goods, imported goods, certain services
Social Security (NSSF)	17%	Employee's gross monthly salary
Personal Income Tax (PAYE)	0% - 20% (progressive)	Employee's gross monthly income

Filing & Compliance

• Employers must withhold PAYE income tax from employee salaries.
• Social Security (NSSF) contributions are mandatory for both employer and employee.
• Taxes and contributions generally must be remitted monthly, typically by the 15th of the following month.

Employee Tax Deductions in South Sudan for 2025

As of February 5, 2025, employers in South Sudan are responsible for deducting several taxes from employee salaries, including Personal Income Tax (PIT), social security contributions, and potentially withholding tax depending on the nature of the income. This overview details these deductions and other relevant tax obligations.

Personal Income Tax (PIT)

• Tax Rates: Progressive rates ranging from 0% to 20%, applying to both residents and non-residents. Non-residents are taxed only on South Sudan-sourced income. Residency is determined by being present in the country for 183 days or more within the tax year.
• Tax Year: The calendar year (January 1 to December 31).
• Filing Deadline: Individual tax returns are due by April 1st of the following year.
• Personal Relief: SSP 3,600 per year.
• Deductible Pension Contributions: Up to 8% of gross salary contributed to a government-approved pension fund.

Social Security Contributions

• Employee Contribution: 8% of gross salary. Contributed to the National Social Insurance Fund (NSIF).
• Employer Contribution: 17% of the employee's gross salary to the NSIF.

Withholding Tax (WHT)

Several categories of income may be subject to withholding tax, meaning the payer deducts the tax and remits it to the government. Some relevant rates in 2025 include:

• Government Contracts: 15% for resident contractors, 20% for non-resident contractors.
• Rental Income (for real estate businesses only): 30% of rental income. Note that this is a separate tax and does not apply to individuals renting out personal properties.
• Mobile Money Commissions: 10% of commissions paid to dealers.

Other Tax Considerations

• Advance Business Profit Tax (BPT): A 4% advance BPT is levied on imported goods and can be claimed as a credit against final BPT liability. The rate differs for sole proprietors based on annual turnover.
• Sales Tax: While not an employee deduction, the standard sales tax rate is generally 18%, with some exceptions. As of the 2023/24 financial year, it increased to 20% for imported goods and hotel, restaurant, and bar services.
• Excise Duties: Vary by product. The 2024/25 Financial Act introduced significant changes to these rates.
• Customs Duties: Exemptions exist for imports of raw materials and intermediate goods, provided the finished goods are subject to customs duties upon leaving the company premises.

It's important to stay up-to-date with potential changes to these rates and regulations, as South Sudan's tax laws may be subject to modifications. This information is based on available data as of February 5, 2025. Consulting with a tax advisor is recommended for specific situations.