South Sudan Personal Income Tax

Individuals who are resident for tax purposes are subject to personal income tax (PIT) on their worldwide income while nonresident individuals are taxed on income that is sourced in South Sudan.

A resident individual is an individual who is domiciled in South Sudan or is physically present in South Sudan for 183 days or more in a tax year.

Income subject to tax. Individuals are subject to tax on various types of income, including, but not limited to, the following:

  • Wages
  • Income from entrepreneurial activities
  • Income from the use of movable or immovable property
  • Income from the use of intangible property

Tax is withheld from dividends, interest, royalties and rent paid to residents and nonresidents at a rate of 10%.

The following types of income are exempt from income tax:

  • Wages received by foreign diplomatic and consular representa­tives and foreign personnel of liaison offices in South Sudan
  • Wages received by foreign representatives, foreign officials and foreign employees of international governmental organizations
  • If agreed on with the government of South Sudan, wages received by foreign representatives, foreign officials and for­eign employees of donor agencies or their contractors or grant­ees carrying out humanitarian aid, reconstruction work, civil administration or technical assistance
  • Compensation for damages and proceeds of life insurance policies
  • Dividends and interest income if tax was withheld at source

Capital gains. Capital gains are recognized as business income. For individuals, capital gains are considered to be gross income subject to personal income tax.

Deductions

Pension deduction. An 8% pension contribution to a government-recognized funded retirement scheme is deductible in determin­ing taxable income.

Business deductions. In general, expenses are deductible only if they are incurred wholly and exclusively to produce taxable income.

Accounting depreciation is not deductible, but capital allowances are available for deduction. A capital allowance is granted on either a straight-line or reducing-balance basis over the useful life of the asset. The assets are classified into the following four classes.

Class Annual depreciation rate (%)
Buildings and other structures 10
Vehicles, office equipment and computers 33
Other property 25
Intangible assets 10

Tax rates. The following tax rates apply to employment and self-employment income.

Monthly taxable income Tax rate Tax due Cumulative tax due
SSP % SSP SSP
First 300 0 0 0
Next 4,700 10 470 470
Above 5,000 15

Tax is withheld from dividends, interest, royalties and rent paid to residents and nonresidents at a rate of 10%.

Relief for business losses. Losses may be carried forward to offset future profits from the same specified source. The loss may be carried forward to the following five tax periods or years. Losses may not be carried back.

Other taxes

South Sudan does not levy property tax, net worth tax, inheri­tance tax or gift tax.

Social security

The only social security tax levied in South Sudan is a pension contribution based on employment income. The rates of the con­tribution are 17% for employers and 8% for employees.

Tax filing and payment procedures

Employee tax withholding. For employees, tax is withheld at source under the PIT system.

Returns. Resident individuals are not required to file an annual PIT return. However, an individual can elect to file a return.

Assessment. A taxpayer may be assessed by the Directorate of Taxation even after return is filed.

Double tax relief and tax treaties

Double tax relief. Resident individuals may offset tax paid over­seas against tax payable in South Sudan on foreign income, up to the amount of tax payable in South Sudan.

Double tax treaties. South Sudan has not entered into any double tax treaties.

Temporary visas and passes

All visitors must have visas to enter South Sudan. Citizens of Kenya, Uganda and a few other countries can obtain temporary visas at any entry point.

Work permits and self-employment

Work permits are issued for a period of one year. They are renew­able on an annual basis.

Residence permits

A residence permit allows an alien to reside in South Sudan. A resident permit can either be special, ordinary or temporary.

Special residence permits. Special residence permits may be granted to the following:

  • Aliens who have been continuously residing in South Sudan for a period of not less than three years
  • Aliens who have lawfully stayed in South Sudan for more than five years and are carrying out scientific, technical and com­mercial activities deemed by the Minister of Interior to be of value to South Sudan

A special residence permit is valid for five years and is renewable.

Ordinary residence permits. Ordinary residence permits may be granted to the following:

  • Aliens who have been continuously residing in South Sudan for not less than five years
  • Aliens who have lawfully resided in South Sudan for more than two years and are carrying out scientific, technical or commer­cial activities deemed by the Minister to be of value to South Sudan

An ordinary residence permit is valid for two years and is renewable.

Temporary residence permits. Aliens not eligible for special or ordinary residence permits may be granted temporary residence permits.

A temporary residence permit is valid for 12 months and is renewable for periods of up to 12 months.

Other information. A residence permit is required for all foreign residents in South Sudan even for individuals who have a work permit. Work permit holders and their dependents must obtain resident permits when they enter South Sudan.

Visitors to South Sudan can be accompanied by their family members. Residence permits extend to the dependents of aliens.

The average processing period for visas is one to three weeks.

Family and personal considerations

Vaccinations. Individuals entering South Sudan must have the immunization certificate for yellow fever.

Driver’s permits. A driver’s license can be obtained from the police traffic headquarters under the Ministry of Interior. Copies of the driver’s license from the home country and passport are required for the application.