The Finance Act 2025 introduces new investment incentives
08 Jan 2025
On 8 January 2025, Sierra Leone adopted the Finance Act 2025, which introduces several measures to incentivize investment. In particular:
Businesses registered in Sierra Leone with at least 20 per cent local ownership are eligible for exemptions, including:
- A five-year exemption if they employ at least 100 full-time workers and invest a minimum of $5 million.
- A ten-year exemption if they employ at least 150 full-time workers and invest $7.5 million or more.
Duty-free importation of plants and machinery:
- New businesses investing at least $10 million can import plants and machinery duty-free for three years.
- Existing businesses expanding with a minimum investment of $5 million also qualify.
Duty-free importation for renewable energy products:
- Specific exemptions apply to photovoltaic systems, energy-efficient appliances and other renewable energy products, provided investors meet certain conditions, such as a minimum investment of $500,000 and the employment of at least 50 workers.
Tax incentives for research and development (R&D):
- A 125 per cent tax deduction is available for expenses related to R&D, training and export promotion, encouraging innovation and capacity building.
Agribusiness tax exemptions:
- Agribusinesses meeting specific criteria—such as cultivating large areas or investing in livestock—are fully exempt from corporate income tax.
- Farm machinery, agro-processing equipment, agro-chemicals and other key inputs qualify for import duty exemptions
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Not industry specific
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Primary (Agriculture, forestry and fishing)
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Manufacturing (Manufacture of food products, beverages and tobacco products)
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Services (Electricity, gas, steam and air conditioning supply, Scientific research and development)
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Sources:
