INCOME TAXES ON CORPORATIONS
1. Rates
The business profits tax rate on all limited companies except
agricultural companies, banks, and insurance companies is 40%. For agricultural companies, the rate is 35%, and, for banks and insurance companies, the rate is 45%.
2. Local Income Taxes
No local taxes are levied on corporations. Corporations that own a building are subject to municipal rates that are calculated at the ratable value of the building.
3. Capital Gains Taxes
Land and Buildings. There is an allowance of 25% of the capital gains (sales price less net book value) if the land or building sold is the personal dwelling of the seller. Thereafter, the rate of tax is 5% of the capital gain.Automobiles. The rate of capital gains tax on cars is 2.5% of the capital gain.
4. Branch Profits Taxes
See Selection of Business Entity by Nonresidents
5. Foreign Tax Reliefs
Double taxation relief is provided by treaties between Sudan and Egypt, Romania, and the United Kingdom.
8. Other Matters
Tax Period. Tax is levied on income derived in the base year, which is the prior calendar year for the following types of income:
q Business profits;
q Rental income from property;
q Personal income (salaries and wages);
q Capital gains;
q Development.
However, for business profits, the base year may be any period selected by the enterprise provided it is followed consistently. If an enterprise wishes to change its year-end, it must inform the Director of Taxation. Base year income includes:
q Any income derived from Sudan, whether or not the person is resident in Sudan;
q Any income derived outside of Sudan, even if not transferred to Sudan in the case of a resident person. However, the Minister of Finance can exempt any Sudanese, or any foreigner domiciled in Sudan, if the income was taxed outside the Sudan.
INCOME TAXES ON INDIVIDUALS
9. Rates
Individuals are subject to personal income tax that is levied on employment income, including fees, commissions, bonuses, living allowances, entertainment allowances, and any other allowance received in consideration of the individual employment. However, if the Director of Taxation is satisfied that an allowance is a repayment of expenditure wholly used for the production of the income received, the allowance is not subject to assessment. In general, any benefit or advantage received by an employee is subject to personal income tax,
except the following:
q Traveling expenses between the Sudan and any other country, provided the employee is not a relative or a director of the company;
q Employer contributions for social security, pension funds, saving or post-service benefit funds, etc., on behalf of an employee, or to his dependents when the employee dies or retires;
q Medical and dental care provided to employees;
q Entertainment allowance of Ls. 1,000 per annum;
q A reasonable allowance for transportation (between Ls. 30 and Ls. 60 per month).
The Director of Taxation has issued a directive on the taxable amounts of the following benefits in kind furnished to employees:
Automobile Ls. 50 per month
Furnished house with food 35% of basic salary
Furnished house without food 30% of basic salary
Unfurnished house without food 25% of basic salary
The first Ls.240,000 of taxable income has a nil rate of personal income tax, and the rates on income above that amount are as follows:
Taxable Income
Tax on Percentage
Over Not Over Lower Amount on Excess
Ls. 0 Ls. 240,000 Ls. 0 0%
240,000 252,000 0 5
252,000 267,000 600 10
267,000 291,000 2
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