The Finance Act 2026, recently signed into law, introduces several important changes to Sierra Leone’s tax framework. For small business owners, understanding these changes is essential for compliance and tax planning.
Key Changes Affecting Small Businesses:
1. Small Business Tax Threshold Increased
| Item | Previous | New |
|---|---|---|
| Threshold for Small Business Rate | Le 200M annual turnover | Le 250M annual turnover |
| Tax Rate (below threshold) | 5% of turnover | 5% of turnover (unchanged) |
| Tax Rate (above threshold) | 25% of profits | 25% of profits (unchanged) |
Impact: An estimated 3,500 additional businesses will qualify for the simplified 5% turnover tax regime.
2. Mandatory Digital Filing
Effective July 2026:
- All registered businesses must file tax returns electronically via the NRA online portal
- Manual/paper filings will no longer be accepted
- Penalties for late filing increased to Le 500,000 per month
3. Withholding Tax Changes
| Payment Type | Previous Rate | New Rate |
|---|---|---|
| Professional Services | 10% | 5% |
| Rent | 10% | 5% |
| Dividends | 10% | 10% (unchanged) |
| Interest | 15% | 15% (unchanged) |
Impact: Reduced withholding on services and rent improves cash flow for service providers and landlords.
4. GST Registration Threshold
The threshold for mandatory GST registration has been adjusted:
- Previous: Le 350,000 annual turnover
- New: Le 500,000 annual turnover
Micro-enterprises below the threshold may voluntarily register to claim input tax credits.
5. Tax Clearance Certificate Validity
Tax Clearance Certificates now valid for:
- Previous: 6 months
- New: 12 months
Compliance Calendar 2026:
| Deadline | Obligation |
|---|---|
| 15th of each month | PAYE (employee tax) remittance |
| 21st of each month | GST return and payment |
| 31st March | Annual income tax return (companies) |
| 30th June | Annual income tax return (individuals) |
NRA Support for Small Businesses:
The NRA has announced:
- Free training sessions on digital filing at NRA offices nationwide
- Helpdesk support via phone and WhatsApp
- Simplified tax guides for small businesses in Krio and English
Expert Tip:
“Don’t wait until the deadline to set up your digital filing account,” advises tax consultant Ishmael Bangura. “The NRA portal requires registration and verification. Start the process now to avoid last-minute complications.”
For assistance with tax compliance, contact the NRA helpdesk at 899 or visit your nearest NRA office.