Find Accountancy, Audit and Tax expertise in Sierra Leone
- Overview
- Profession
- Tax
Overview
Accountancy firms in Sierra Leone are primarily located in Freetown. The market for auditing services in the country is relatively small, due to low demand, and is dominated by the large international accounting firms. Most financial sector companies, as well as large corporations, are audited by audit firms affiliated with international networks. Not so many small and medium enterprises have their financial statements audited. The Bank of Sierra Leone is empowered to regulate financial reporting by non-bank financial institutions under the Other Financial Services Act of 2001 and regulates banks under the Banking Act of 2000. Adoption of International Financial Reporting Standards (IFRS) is advanced in Sierra Leone. All companies are required to conform and banks are starting to adopt IFRS for all their financial reporting. The World Bank Ease of Doing Business Index (2011) ranks Sierra Leone at 155 out of 183 countries with regards to resolving insolvency, with neighbouring Liberia in 158th position. In terms of strength of auditing and reporting standards, Sierra Leone scores 3.7 out of 7, below the world mean of 4.6, according to the World Economic Forum’s Global Competitiveness Report (2012-2013).
Profession
Institute of Chartered Accountants of Sierra Leone is the leading professional body and a member of the International Federation of Accountants. Fourah Bay College’s Institute of Public Administration & Management (I.P.A.M.) offers nationally accredited qualifications for the sector through the department of Accountancy & Finance. Members of the Association of Chartered Certified Accountants of the United Kingdom represent a significant number of accounting professionals in Sierra Leone. Accountancy students in Sierra Leone are eligible to enter the Association of Chartered Certified Accountants (ACCA) and the national accountancy body, the Institute of Chartered Accountants of Sierra Leone, by means of ACCA’s Joint Examination Schemes.
Tax
Income tax is progressive from 20% to 30% and corporate tax is charged at a 30% flat rate. Capital gains tax is levied on gains from the disposal of a business or investment asset but not on other gains. Incentives are in place for new businesses, in particular tree crop farmers who enjoy exemption from income tax on a ten year period. The National Revenue Authority (NRA) became operational in 2003 to advance equity and fairness in Sierra Leone’s tax system. The World Economic Forum’s Global Competitiveness Report (2012-2013) ranks Sierra Leone 43rd out of 141 countries in terms of total tax rates. With regards to paying taxes, Sierra Leone comes 76th out of 183 countries according to the World Bank Ease of Doing Business Index.
| Accountancy, Audit and Tax organisations in Sierra Leone | |
|---|---|
| Association of Chartered Certified Accountants of the United Kingdom |
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| Bank of Sierra Leone |
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| Guru Group |
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| Institute of Chartered Accountants of Sierra Leone, The |
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| Institute of Public Administration & Management (I.P.A.M.) |
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| National Revenue Authority (NRA) |
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