NRA Trains INGOs on Tax Compliance and PAYE Calculations

The National Revenue Authority (NRA), in collaboration with the Ministry of Planning and Economic Development (MoPED), has conducted a training session for International Non-Governmental Organizations (INGOs) on tax compliance, specifically focusing on the calculation of Pay-As-You-Earn (PAYE) tax and other tax obligations.

The training session stemmed from a recent meeting between the NRA and INGOs regarding the retrospective payment of PAYE for international staff. One of the key action points from that meeting was the need for capacity-building to ensure proper understanding and compliance with Sierra Leone’s tax regulations.

Speaking on behalf of the Commissioner General, the Commissioner of the Domestic Tax Department (DTD), James Borbor Tengbe, expressed deep appreciation for the invaluable contributions of INGOs in areas such as health, education, livelihoods, humanitarian response, and governance reforms. He emphasized that tax compliance should not be seen as a burden but rather as a crucial contribution to strengthening Sierra Leone’s tax ecosystem, which in turn supports public services and institutions. Tengbe reaffirmed the government’s commitment to working collaboratively with INGOs towards a fairer and more accountable tax system.

Acting Minister of Finance, Bockarie Kalokoh, echoed similar sentiments, acknowledging the pivotal role INGOs play in national development. He highlighted the significance of the Tax and Duty Exemption Act, 2023, which underscores the government’s commitment to fostering a conducive environment for INGOs to operate efficiently. Kalokoh reiterated that the government remains committed to partnering with INGOs to achieve Sierra Leone’s broader development goals.

The session provided an opportunity for open dialogue, emphasizing the importance of tax compliance and fostering a collaborative approach to navigating the country’s tax framework. Participants were reminded that while some organizations operate under specific agreements or exemptions, these do not exempt them from all tax obligations, such as Personal Income Tax (PIT) on employment income and Withholding Tax (WHT) for vendors.

During his presentation, tax expert Samuel Fullah stressed the need for proper registration, accurate tax filings, and maintaining transparent financial records to ensure fairness in the tax system. He also introduced the Integrated Tax Administration System (ITAS), a digital platform designed to streamline tax compliance processes and enhance efficiency.

Additionally, the training addressed common tax compliance challenges faced by INGOs and introduced dedicated focal points within the NRA’s Domestic Tax Department to assist INGOs in resolving tax-related issues.

The NRA remains committed to strengthening tax compliance through continuous engagement and training, ensuring that INGOs operate within the legal tax framework while continuing their valuable contributions to Sierra Leone’s development.