As Parliament Passes Finance Act 2023…
New Tax Regime Will Cause More Hardship
In a new development, the Parliament of Sierra Leone on 4th April 2023, passed into Law a new tax regime that will attract new taxes on food, especially rice importation, Plant & Machinery for agriculture, manufacturing and mining, Solar Energy Products and Free & promotional calls/data, effectively removing exemptions exemption of charges for Port Services on such commodities, especially rice, which is the staple food. This development has been seen by many as adding more burden on the people, including game betting companies.
See Details below:
– Minimum Alternate Tax @ 3%
– Tourism Levy @ 2%
– GST on Fee-Based Financial Services
– Stamp duty from 0.5 to 2%
– Annual Circulation Levy for Vehicles & Kekehs of SLE 200
– Removal of GST exemption for solar products
1. Minimum Alternate Tax (MAT):
– Ensures companies pay 3% of their turnover/sales as Corporate Income Tax, even if they make a loss
– CIT payable is the higher of normal CIT calculated on the profit of 25% or the MAT
– MAT Credit is allowed to be offset in a year when the normal CIT exceeds the MAT for 10 years
2. Digital Services
– All forms of Satellite TV and digital content such as Netflix will attract GST at 15%.
– Digital gambling services will also attract GST at 15%
3. Major GST Exemption changes:
– Removal of exemption for Port Services for the import of rice, Plant & Machinery for agriculture, manufacturing and mining, Solar Energy Products and Free & promotional calls/data
Re-introduction of GST on fee-based financial services
Introduction of a GST on insurance, except life insurance
4. Stamp Duty Increase from 0.5 to 2% of property value for conveyances and title deeds.
5. Introduction of Tourism Levy, a new consumption tax paid by consumers @ 2% on the sale price of accommodation, food, drinks and other related services offered by tourism establishments.
6. A new Annual Circulation Permit Levy is introduced. This levy will be paid yearly by all vehicles, including cars, trucks, buses, boats, airplanes, and three-wheelers (Kekehs).
#SLFinanceAct23 #TaxAdvisory #TheBettsFirm #TBF
