In Sudan, employers have several tax responsibilities. They must contribute 17% of their employees' gross salaries towards social security. This contribution covers old-age pensions, disability, and survivor benefits for both Sudanese nationals and expatriate employees.

Personal Income Tax (PAYE)

Employers are also responsible for withholding personal income tax (PAYE) from their employees' salaries based on a progressive tax rate schedule. They must file and remit withheld income tax to the tax authorities on a monthly basis for resident employees. For Sudanese nationals working abroad, taxes are due by the end of the fiscal year.

Other Employer Taxes

There are other taxes that employers may be subject to. A development tax of 3% of employees' gross salaries may be applicable in some cases. Additionally, employers may be subject to a vocational training levy of 1% of gross salaries.

Important Considerations

Employers must register with the tax authorities in Sudan. Tax rules for expatriate employees can be complex, so it's advisable to seek professional tax advice for specific scenarios.

In Sudan, all employees, including Sudanese nationals and expatriates, are subject to mandatory social security contributions. The deduction rate for employees is 8% of their gross salary. Social security provides benefits for old age, disability, and survivor pensions.

Personal Income Tax (PAYE)

Sudan operates a progressive personal income tax system. Tax rates are applied to an employee's taxable income after deducting allowable exemptions and deductions. The tax rates range from 5% to 15%. It is the employer's responsibility to calculate and withhold income tax under the PAYE system.

Other Employee Tax Deductions

There may be instances where other deductions apply. For example, Zakat is a religious obligation for Muslims; its calculation and deduction requirements may vary.

Important Notes

Taxable income is calculated after applicable deductions and exemptions. Taxation rules for expatriates may have specific considerations. Tax rates and rules are subject to change, so it's important to stay updated.

For general inquiries on deductions and regulations, you can consult the Tax Administration in Sudan. For specific advice on your tax liabilities and to ensure compliance with Sudanese tax law, you can consult reputable tax and legal firms.

In Sudan, the standard Value Added Tax (VAT) rate is 17%. This rate is generally applicable to most services provided within the country. However, a special rate of 35% is levied on telecommunication services.

VAT Exemptions

There are specific services in Sudan that are exempt from VAT. These exemptions may include certain financial transactions and services. Basic healthcare and education services are typically exempt as well. Additional exemptions may apply, and it's recommended to refer to the Sudanese tax authorities for a comprehensive list.

VAT Registration and Filing

Businesses providing taxable services in Sudan with an annual turnover exceeding a specific threshold must register for VAT. The exact threshold is subject to change, so it's important to verify the current figure with the tax authorities. Registered businesses generally file VAT returns and remit payments on a monthly basis. Specific deadlines may apply.

Important Considerations

Businesses can generally reclaim VAT paid on inputs (purchases) used for providing taxable services. Accurate record-keeping of VAT transactions is essential for compliance.

For further information, it's recommended to consult with the Tax Administration of Sudan or reputable tax and legal firms in Sudan. They can provide specific guidance on VAT compliance for your business.

The Sudanese government offers various tax incentives to attract investment and boost economic activity. Here's a breakdown of some key incentives, their eligibility requirements, and application processes:

Types of Tax Incentives

• Corporate Income Tax Reduction: Businesses operating under the Investment Encouragement Act can benefit from a significant reduction in corporate income tax. This incentive offers a:

  • Five-year corporate income tax holiday: This allows complete exemption from corporate income tax for the first five years of operation.
  • Reduced tax rate after the holiday period: Following the tax holiday, a reduced tax rate may apply, depending on the specific industry and project details.

• Other Potential Incentives: Depending on the specific project and sector, additional incentives may be available, such as:

  • Reduced registration fees
  • Simplified licensing procedures
  • Profit repatriation guarantees

Qualification Criteria

Eligibility for these tax incentives typically hinges on several factors, including:

• Industry Sector: Incentives often target specific sectors the government prioritizes for development, such as manufacturing, agriculture, or tourism.
• Minimum Investment Threshold: A minimum investment amount may be required to qualify for certain incentive programs.
• Job Creation: Projects demonstrating high job creation potential are generally more favorable.
• Location: Setting up operations in designated economic zones or less developed areas may offer additional benefits.

Application Process

The application process usually involves submitting a detailed proposal to the relevant authorities, outlining the business project. This proposal should detail:

• Investment amount
• Nature of business activity
• Projected job creation
• Export potential (if applicable)

Following a thorough review, the government may grant an approval certificate outlining the specific tax benefits awarded to the project.

Important Considerations

• Tax incentives are subject to change. Always consult with a qualified tax advisor to access the latest information and ensure your project aligns with current incentive programs.
• Maintaining comprehensive records and documentation is crucial for claiming tax benefits and demonstrating compliance with regulations.