Employers are required to contribute 17% of an employee's monthly gross salary to the National Social Security Fund (NSSF). This contribution covers all social security programs, including pension, disability, and survivor benefits.

Social Security Contributions

• Contribution Rate: Employers are required to contribute 17% of an employee's monthly gross salary to the National Social Security Fund (NSSF). This contribution covers all social security programs, including pension, disability, and survivor benefits.

Pay As You Earn (PAYE) Withholding

• Responsibility: Employers are responsible for withholding income tax (PAYE) from their employees' salaries.
• Calculation: The PAYE tax is calculated based on a progressive tax rate schedule. The tax brackets and rates can be obtained from the South Sudan National Revenue Authority (SSNRA).

Payment Deadlines

• Social Security: Employers must remit their social security contributions to the NSSF by the 15th of the following month.
• PAYE: PAYE withholding tax must be submitted to the SSNRA by the 15th of the following month.

Employees in South Sudan are subject to two main types of tax deductions: Pay As You Earn (PAYE) Income Tax and Social Security Contributions.

PAYE Income Tax

This is a form of income tax that is withheld directly from the wages of employees. All individuals earning income in South Sudan are liable for this tax, with different tax treatments for residents and non-residents.

The calculation of this tax is based on a progressive tax scale, where the tax rate increases as income rises. For the most up-to-date tax brackets and rates, it's advisable to refer to the South Sudan National Revenue Authority (SSNRA) website.

Social Security Contributions

Employees are required to contribute 8% of their gross salary to the National Social Security Fund (NSSF). This contribution covers pension, disability, and survivor benefits. It is generally mandatory for all employees working in South Sudan, with some exceptions based on specific circumstances or social security agreements.

The contribution is calculated as 8% of the employee's gross salary.

In South Sudan, a standard VAT rate of 18% is imposed on most goods and services provided within the country.

Exemptions

Certain categories of services are exempt from VAT in South Sudan. These typically include:

• Financial Services: Such as banking, insurance, and some financial transactions.
• Educational Services
• Medical Services
• Public Transportation
• Basic Food Items: A specific list of exempt food items applies.

Filing Procedures

Businesses exceeding a specific revenue threshold must register for VAT with the South Sudan National Revenue Authority (SSNRA). VAT returns are generally filed monthly. The due date for filing is typically the 15th of the following month. E-filing of VAT returns and payments appears to be mandatory in South Sudan.

South Sudan's tax environment is still developing, with the government offering some incentives to attract investment and stimulate economic activity. These incentives include reduced Corporate Income Tax (CIT) rates, import duty exemptions, and investment tax allowances.

Reduced Corporate Income Tax (CIT) Rate

Businesses operating in specific sectors may qualify for a reduced CIT rate. These sectors often prioritize government development goals, such as:

• Agriculture and Manufacturing: Encouraging domestic production and food security.
• Infrastructure Development: Promoting investments in roads, bridges, and other essential infrastructure projects.
• Information and Communication Technology (ICT): Supporting the growth of the technology sector.
• Renewable Energy: Incentivizing investments in solar, wind, and other clean energy solutions.

Import Duty Exemptions

Businesses importing specific equipment and machinery crucial for their operations might be eligible for exemptions or reduced import duties. This can significantly lower the cost of establishing or expanding operations.

Investment Tax Allowances

Businesses investing in designated special economic zones or priority sectors may benefit from accelerated depreciation allowances. This allows for faster deduction of capital expenditure from taxable income.

Qualification Criteria

Eligibility for these tax breaks often hinges on several factors, including:

• Industry: Businesses operating in sectors the government prioritizes are more likely to qualify.
• Location: Incentives may be targeted towards businesses operating in specific regions or special economic zones.
• Investment Size: Minimum investment thresholds might be required for availing certain tax breaks.
• Job Creation: Incentives might favor businesses creating job opportunities for South Sudanese citizens.

Application Process

The application process for tax incentives can vary depending on the specific program. However, it generally involves:

1. Gathering Required Documents: Business registration documents, project proposals, and financial projections are often necessary.
2. Submitting an Application: Applications are typically submitted to the South Sudan Investment Authority (SSIA) or relevant government ministries overseeing the specific incentive program.
3. Awaiting Approval: The government agency will review the application and determine eligibility based on the established criteria.