Sierra Leone Digital Services Tax

1.5% DST on digital and electronic transactions Jan 2021

Sierra Leone introduced its Digital Services Tax (DST) from 1 January 2021. This was implemented via the 2021 Finance Act. The tax is levied on advertising, search and subscription services irrespective of the country of residence of the provider. The 1.5% shall be imposed on the turnover of all digital and electronic services.

There is currently global discussions via the OECD Pillar 1 DST initiative to rewrite the rules on countries taxing digital services provided by non-residents. The aim will be to reach a consensus and have unilateral DST’s, such as Sierra Leone’s, withdrawn.

Sierra Leone’s DST targets three categories of supplies:

• Digital market supply or digital services through a digital marketplace, refers to e-platforms, whether e- medium, e-commerce, peer-to-peer (P2P), advertising- based, agency or subscription-based that include
• downloadable digital contents, subscription-based media; software programs; electronic data management; supply of music, film, and games electronically; online sale of goods; and any online betting activity;
• search engines and automated help desk services, online tickets, e-learning platforms, audio, vision or digital media, transport hailing platforms, among others.

Africa & Middle East Digital Services Taxes (DST)