By Hassan Osman Kargbo
In a bid to ensure better tax compliance and foster greater cooperation between the government and Non-Governmental Organizations (NGOs), the Ministry of Planning and Economic Development (MoPED), in collaboration with the Ministry of Finance and the National Revenue Authority (NRA), held an important training for key officials of NGOs and International Non-Governmental Organizations (INGOs).
This capacity-building session, hosted at the Freetown City Council Auditorium, was a response to growing concerns about PAYE tax compliance and the implementation of the Finance Act and Duty Waiver Act.
The training, which brought together Country Directors, Finance Managers, and Human Resource Managers from various NGOs and INGOs, focused on the proper calculation and payment of PAYE tax for both national and expatriate staff. The session also provided crucial insights into the Finance Act and Duty Waiver Act to ensure that all organizations operate within the framework of Sierra Leone’s tax laws.
Eric Massally, the Director of NGOs at MoPED, opened the event by underscoring the significance of the training in addressing persistent issues related to tax compliance. Massally explained that the collaboration between MoPED, the Ministry of Finance, and the NRA had been key to identifying areas of concern within the NGO sector, particularly the question of whether expatriates should be subject to PAYE tax. Following extensive consultations, the decision was made to require expatriate staff to begin paying PAYE starting in January 2025, with public education efforts to follow to ensure full compliance.
Alice Neneh James, the Coordinator of the Sierra Leone Association of Non-Governmental Organizations (SLANGO), also praised the efforts of the NRA, MoPED, and the Ministry of Finance for their work in organizing the session. She recognized that the NRA’s push for expatriate PAYE compliance was an important step toward ensuring a level playing field for all staff working in Sierra Leone.
The event also featured a keynote address by Rev. Dr. Jonathan Titus Williams, the Deputy Minister of MoPED, who highlighted the role of NGOs in promoting social development and alleviating poverty in Sierra Leone. He emphasized the importance of financial transparency and accountability within the NGO sector, urging organizations to comply with PAYE guidelines and stay informed about any amendments to the Finance Act. He noted that tax compliance is critical for maintaining public trust and ensuring that NGOs can continue their vital work.
Hon. Bockarie Kalokoh, the Acting Minister of Finance, also addressed the participants, reaffirming the government’s commitment to fostering an enabling environment for NGOs. He discussed the Tax and Duty Exemption Act 2023, which was designed to streamline the exemption process and prevent revenue leakages, allowing NGOs to better focus on their development objectives.
This training session marked a significant step toward enhancing tax compliance within the NGO sector and improving the relationship between the government and these organizations. The event concluded with a call for continued dialogue and collaboration to ensure the long-term sustainability and effectiveness of both government and NGO operations in Sierra Leone.
