Sierra Leone’s Income Tax Act 2000 and the multiple Finance Acts enacted since 2010 contain various incentives to encourage private sector investment and promote the inflow of foreign capital and technology into Sierra Leone.

These include income tax exemptions, deductions for income tax purposes, import duty exemptions and goods and services tax exemptions. Such incentives are contingent on the satisfaction of relevant criteria including the need to improve local content, which is explored in further detail below.

General incentives include:

• Income tax relief on plant, machinery and equipment
• Three-year grace period on import duties for new and existing businesses importing plants, machinery or equipment
• Lower import duty rates for raw materials
• 100% tax deductions for expenditure on research and development, training, and the development of social services (e.g., schools and hospitals)

Sector-specific incentives have also been implemented for investments in agriculture, energy, infrastructure, tourism, and pharmaceuticals. These are outlined in the Key Sectors.

Additional incentives are provided to Special Economic Zones (SEZs), including:

• Import and export duty exemptions
• Three-year corporate tax holidays
• Expedited government services including customs, immigration, and registration

The non-profit international development agency World Hope International has established an SEZ near Sierra Leone’s principal seaport in Freetown. The GoSL is considering the establishment of further SEZs in other parts of the country under its Post-Ebola Recovery Strategy.