NRA to Embark on a Nationwide Survey on Rental Income

The National Revenue Authority (NRA) will conduct a nationwide survey on rental income in a bid to widen the Authority’s tax base to increase domestic revenue. The Commissioner of the Domestic Taxes Department Mr. Ibrahim Sorie Kamara said rent tax is charged at 10% on income generated from rented houses or building meant located in Sierra Leone irrespective of the country of resident of the owners as long as they are meant for commercial activity.

The rent survey is set to commence in September and remunerators have been selected from different universities and will be undergoing robust training next week. Mr Kamara said once the rent survey is completed and taxpayers register updated, the NRA will take stringent enforcement actions against non-compliance of the Income Tax Law. According to this law, rental income should be paid annually, not later than 90 days after the end of the year and 35% of total rent due is charged for non-compliance with the law.

As NRA continues to pursue such tax reforms to augment revenue collection, there is mounting evidence that the government is using the institution as a catalyst for state building and improved governance. As the rate of domestic resource mobilisation to GDP increases, the government is gradually relying on domestic revenue generation and less on foreign aid to promote economic growth.

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