By Hassan Osman Kargbo
The Ministry of Planning and Economic Development (MoPED), 12 March 2025, took a pivotal role in organizing a comprehensive capacity-building training for Country Directors, Finance Managers, and Human Resource Managers of both local Non-Governmental Organizations (NGOs) and International Non-Governmental Organizations (INGOs) in Freetown.
The training, held at the FCC Auditorium, was designed to address key issues around tax compliance, specifically focusing on the calculation of Pay-As-You-Earn (PAYE) tax for national and international staff and enhancing understanding of the Finance Act and Duty Waiver Act.
The training, a collaborative effort between MoPED, the Ministry of Finance, and the National Revenue Authority (NRA), comes in response to long-standing concerns about tax obligations within the NGO sector, particularly surrounding expatriate staff.
In his opening remarks, Eric Massally, Director of NGOs at MoPED, stressed the importance of the training in tackling compliance challenges recounting the extensive consultations that took place between MoPED, the Ministry of Finance, and the NRA are to ensure a transparent and fair tax system, acknowledging the sector’s concerns about expatriates’ PAYE obligations.
The session addressed the introduction of a new policy that requires expatriate staff to start paying PAYE as of January 2025, a policy shift aiming at clarifying the tax responsibilities of expatriate workers, who were previously exempt, and ensure that they comply with national tax regulations.
Massally also noted that public education on such a matter is crucial for proper understanding and compliance.
Alice Neneh James, Coordinator of the Sierra Leone Association of Non-Governmental Organizations (SLANGO), commended the efforts of MoPED, the Ministry of Finance, and the NRA in facilitating the training, acknowledging that such initiatives help create a more transparent and accountable tax environment for NGOs.
She highlighted that the NRA’s directive for expatriate PAYE compliance was implemented in 2024, with enforcement for INGOs beginning in 2025.
The Ministry of Planning and Economic Development’s proactive role in fostering a robust tax system was also evident in the keynote speech by Rev. Dr. Jonathan Titus Williams, the Deputy Minister of MoPED.
He underscored the crucial role NGOs play in sectors such as health, education, and poverty alleviation, but emphasized that tax compliance is vital for the sustainability and transparency of the sector.
He encouraged all participants to adhere strictly to the new PAYE guidelines and urged them to actively engage in the process.
The Minister of Finance, Hon. Bockarie Kalokoh, reiterated the government’s commitment to balancing tax exemptions with the need for domestic revenue mobilization, explaining that the government’s efforts to streamline tax exemption processes through the Tax and Duty Exemption Act 2023 aim to minimize delays and improve transparency, fostering better cooperation between NGOs and the government.
The training concluded with a strong emphasis on continued collaboration between MoPED, the Ministry of Finance, NRA, and NGOs to ensure that tax obligations are met efficiently and effectively, contributing to sustainable development in Sierra Leone.
