South Sudan Standard Incentives for Investors
The grant of Incentives to Investors in South Sudan is governed by the South Sudan Tax System (according to Taxation Act 2009), and Benefits and Incentives for Investors (according to Investment Promotion Act 2009.
When establishing business in South Sudan, one is required to obtain a tax identification number (TIN). The TIN will be provided the time of registration/incorporation of the business name. The significant milestone in tax policy for Republic of South Sudan was passage of Taxation Act 2009 that provided for sound tax policy framework; a strong basis for tax administration, and a modern, easily administrated tax law.
Business Personal Income Tax
|Amount of Taxable Income (Monthly Average)||Tax Rate|
|SSP 300||Not subject to income tax (Zero rate)|
|SSP 301 – SSP 5000||10%|
|SSP 5001 and above||15%|
Business Profits Tax
|Type of Business
Dividends, interest and royalties subject to a 10% withholding tax. The Act is very investor-friendly including:
- A very low and simple rate structure
- And liberal business deduction and depreciation systems: depreciation over 10 years for building; 3 years for equipment including vehicles and; 4 years for all other assets.
New Tax System
The Act is designed as a package and is one of the few comprehensive tax laws in Africa which encompasses:
- Personal income tax marginal rate is 0, 10, and 15%
- Excise duties range from 5 to20%
- Business profile tax is 10% on small sized businesses and 15% on medium sized businesses
Taxation in South Sudan takes place at the Republic of South Sudan level, State level and County/Payam/Boma levels. Taxes are payable to the Directorate of Taxation.
Excise tax is levied on goods produced in South Sudan; the import excisable goods into South Sudan; and the provision of excisable services in South Sudan. The following table provides a detailed list of excisable goods and their corresponding excise tax.
|Harmonized system number
||Article description||percentage||Specific rate|
|2203||Beer made from malt||15%|
|2204||Wine of fresh grapes, including fortified wines; grape (other than unfermented grape)||15%|
|2205||Vermouth and other wines of fresh grapes flavored with plants or aromatic substances||15%|
|2206||Other fermented beverages (including cider, prune, wine, rice wine, or sake, sherry, and mead)||15%|
|2207.10.30||Indentured ethyl alcohol of an alcoholic strength by volume of 80% volume or higher for beverage purposes||20%|
|2208||Indentured ethyl alcohol of an alcoholic strength by volume of 80% volume; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of kind used in manufacture of beverages.||20%|
|2402||Cigars, cheroots, cigarillos and cigarettes of tobacco or tobacco substitutes||15%|
|2403||Other manufactured tobacco and manufactured tobacco substitutes; “homogenized” or “reconstituted” tobacco; tobacco extracts and essences||15%|
|2710.00.10, 2710.00.15, or
|8703||Motor cars and other vehicles principally designed for the transport of persons (other than buses), including wagons and racing cars||15%|
|8704||Motor vehicles for transport of goods||10%|
Tax Concessions and Incentives Regime
The Government of the Republic of South Sudan has designated the following sectors as priority for Investment, and investors in these sectors are entitled to benefits and incentives:
- Agriculture and Agribusiness
- Physical infrastructure
- Social infrastructure
- Mining, quarrying, energy and electricity, petroleum and gas industries
- Prospecting of natural resources for economic use
- Medium to heavy manufacturing industries
- Transport, telecommunications, print and electronic media, and ICT
- Commercial banking, insurance, property management, and financial institutions
- Pharmaceuticals, chemicals, and medicinal and surgical industries
- Tourism and hotel industry development
Investors in the aforementioned sectors enjoy the following incentives:
- Duty exemptions: agricultural import-tools, equipment, machinery and tractors, pharmaceutical, animal feeds, seeds – for boosting food and cash crops productions are exempt from any duties and taxes for a period that shall be determined by law.
- Tax Incentive: these include capital allowances ranging from 20% to 100%, deductible annual allowances ranging from 20% to 40% and other depreciation allowances ranging from 8% to20%.
- Special Incentive: special incentives may be granted by Board of Directors of South Sudan Investment Authority to investments in strategic or transformational sectors. These special incentives are only available on special applications by investments in areas designated as Strategic or Transformational.
Tax incentives and duties exemptions are requested through an application to the Ministry of Finance and Planning which is obtained and administered by South Sudan Investment Authority, the Government mandated agency to regulate, promote investment opportunities in South Sudan, Region and in the World.