Policies and legislation
The policies that matter to a business in Sierra Leone are set out in the tax laws, the Companies Act, the NIB Act and the Finance Acts, which together decide what a business must do and what relief it can claim.
Incentives in law
The Income Tax Act 2000 and the Finance Acts passed since 2010 contain incentives to encourage private investment and bring in foreign capital and technology. They include income tax exemptions, deductions for income tax purposes, import duty exemptions and goods and services tax exemptions.
These incentives depend on meeting the relevant criteria, including improving local content. Sector incentives have also been set for agriculture, energy, infrastructure, tourism and pharmaceuticals.
General incentives
- Income tax relief on plant, machinery and equipment
- A three-year grace period on import duty for new and existing businesses importing plant, machinery or equipment
- Lower import duty rates on raw materials
- 100% tax deduction for research and development, training and the development of social services such as schools and hospitals
Special economic zones
- Import and export duty exemptions
- Three-year corporate tax holidays
- Faster government services, including customs, immigration and registration
Zones
World Hope International, a non-profit development agency, has established a special economic zone near the main port in Freetown. The Government has considered more zones elsewhere in the country.