Sierra Leone Annual Tax Changes 2026 Explained

Legislative summary of changes 

Redundancy or termination payments

• Any redundancy payment, payment for termination, loss of office or employment, or similar payment is fully exempt from employment income.
• Previously, amounts were exempt up to NLe 50,000, with any excess taxed at 5%.
• Reference: Section 23(3)(h) of the Income Tax Act, 2000.

Withholding tax rates on payments to non-residents

• Withholding tax on payments to non-resident contractors increases from 10% to 20%.
• Withholding tax on management or professional fees paid to non-residents increases from 15% to 20%.
• Payments covered under this provision are not treated as employment income.
• The payer is required to withhold tax at source on the gross amount payable before making payment to the non-resident.

Reference: Second Schedule to the Income Tax Act 2000.

Additional information and resources 

• Click here to access the official publication.
• Please refer to release note PSPDEV-27206 titled Calculation changes / Annual tax changes 2026 for more information.

Should you have any questions regarding the Sierra Leone Annual tax changes 2026, please feel free to visit our Support page for more ways to get in touch, or email us at support@payspace.com

The Deel Local Payroll Team