A Guide to Understanding Taxation in South Sudan

Taxation plays a pivotal role in shaping South Sudan’s economic framework, impacting both individuals and businesses operating within the country. A clear understanding of the tax landscape is essential for compliance and financial planning. This guide provides an overview of key taxes in South Sudan, including Personal Income Tax, Business Profit Tax, Sales Tax on Produced Goods, and Excise Duties, with insights into each category.

1. Personal Income Tax

Personal Income Tax in South Sudan applies to both resident and non-resident individuals, though the criteria differ based on residency status.

• Resident Individuals: Taxable on all global income, including income from sources both within and outside of South Sudan.
• Non-Resident Individuals: Only taxable on income sourced from within South Sudan.

Income Brackets and Rates for FY 2023/24:

• 0% on income below SSP 20,000 per month
• 5% on income between SSP 20,001 and SSP 40,000 per month
• 10% on income between SSP 40,001 and SSP 57,000 per month
• 15% on income between SSP 57,001 and SSP 90,000 per month
• 20% on income above SSP 90,000 per month

Certain exemptions apply, including income for diplomatic representatives and employees of international organizations.

2. Business Profit Tax (BPT)

The Business Profit Tax (BPT) is applicable to the taxable profit of businesses and is governed by the Taxation Act, with amendments in 2012 and 2016.

• Tax Rate: A flat rate of 30% applies to businesses of all sizes.
• Allowable Deductions: Businesses can deduct expenses like operational costs, depreciation, and bad debts to calculate taxable profit.

Exemptions include income for NGOs used for public purposes and dividends where tax has already been withheld.

3. Sales Tax on Produced Goods

Sales Tax is levied on the production, importation, and certain services within South Sudan. It applies to goods such as manufactured items and specific service industries.

• Tax Rate: Ranges from 1% to 20%, depending on the category of goods or services.
• Exemptions: Goods and services linked to diplomatic missions or international donors may be exempt under specific agreements.

4. Excise Duties

Excise duties are imposed on both domestic production and importation of excisable goods, including alcohol, tobacco products, air transport services, and telecommunications.

• Assessment: Calculated based on the manufacturer’s selling price or fair market value.
• Exemptions: Certain goods, like aviation fuel, may be exempt under specified conditions.

Filing and Compliance

Each tax has specific filing dates and requirements. Personal Income Tax is typically paid monthly, while Business Profit Tax and excise duties may have quarterly or annual filing dates. Compliance is essential to avoid penalties and to maintain good standing with South Sudan’s National Revenue Authority (NRA).

Conclusion

Navigating South Sudan’s taxation system is crucial for maintaining compliance and optimizing financial planning. Whether you are a business owner or an individual taxpayer, understanding these tax obligations ensures you can plan effectively while adhering to South Sudan’s regulations. For expert guidance, consult with tax professionals or legal advisors to align your tax strategy with local requirements.