Income Tax in Sudan

Tax Return:

The tax year ends on 31^st December and the return shall be filed upto 30^th June of the following year. In case of late filling of return penalty shall be levied as per the provisions of Sudan’s tax regulations. 

Individual Tax Rate:

Both resident and nonresident are taxed at marginal tax rate of 15%. However resident individuals are taxed on their world wide income and nonresidents are taxed on income that is earned in Sudan.

Withholding Tax:

There is no withholding tax on income earned by way of dividend for both residents and non residents. However a stamp duty of 1% is applicable on dividends paid by resident companies.

There is no withholding tax on income earned by way of interest for residents and when the payment of interest is made to nonresident withholding tax at the rate of 15% is required to be deducted.

Payment for royalties and management   service fees is subject to withholding tax at the rate of 15% in both the case of resident and nonresident.

Corporate Income Tax:

The tax rate of companies is same irrespective of the residential status of the company but the tax rate differs as per the type of business conducted by the company. The tax rate for different type of business is as follows:

·  15% for service companies

· 10% for manufacturing

· 35% for oil exploration (including subcontracts)

· 0% for agriculture

· 30% for tobacco

· 2.5% of revenue for telecommunication companies

Tax on Capital Gains:

The tax rate on capital gain is same irrespective of the residential status but the tax rate differs as per the type of capital gain. The tax rate for different type of capital gain is as follows:

·  2% land and real estate

· 2% motor vechiles

· 2% bonds and shares (on gains derived by a non-resident from the disposal of shares in a Sudanese company)

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Note: Information placed here in above is only for general perception. This may not reflect the latest status on law and may have changed in recent time. Please seek our professional opinion before applying the provision. Thanks.