Sudan taxes resident individuals generally on worldwide income and companies with control and management exercised in Sudan as residents, under Sudan's Income Tax framework administered by the Sudan Tax Authority; non-residents are taxed only on Sudan-source income. The standard corporate rate is 35%, with reduced rates or holidays available for agricultural and industrial companies and free zone exemptions.
Sudan's tax filing framework includes annual tax return deadlines, monthly VAT returns, and withholding tax returns, with employer withholding obligations applying throughout the year; see the Residency section below for the specific day-count tests governing individual tax residency.
35% standard rate (agricultural/industrial companies may access reduced rates or holidays; free zone exemptions available).
Progressive, 5% to 15%.
17% standard VAT.
Under Sudan's Income Tax framework, an individual is "resident in Sudan" for a given period if: present in Sudan 183 days or more in the period, or present in Sudan in that period and both preceding periods for a total of 12 months or more (excluding temporary absences deemed reasonable by the Secretary-General). For a non-individual (company), residency is established where control and management are exercised directly in Sudan during the period. Resident individuals are generally taxed on worldwide income; non-residents only on Sudan-source income.
Foreign companies operating in Sudan may trigger a permanent establishment, which carries significant corporate tax implications, taxed under the same 35% standard rate framework that applies to resident companies on the profits attributable to that establishment; even without a PE, employing staff locally in Sudan creates payroll and income tax withholding obligations for the foreign employer.
No CFC-style attribution provision was found in Sudan's tax legislation despite genuine search effort. Sudan's tax system centers on income tax (business profits, individual income, capital gains), zakat, and property/transaction taxes. This should be treated as "no CFC provision found in the sources reviewed" rather than an absolute guarantee, and confirmed directly with a Sudan-qualified adviser before being relied upon for a specific structure.
No thin capitalization or interest-deduction-limitation rules were located in available secondary sources on Sudan. As with CFC rules, this reflects a gap in available English-language secondary sources rather than a confirmed absence - verify directly with the Sudan Tax Chamber (Sudan Chamber of Taxation) or local counsel.
Sudan classifies entities under its own domestic tax legislation rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified, consistent with no CFC-style attribution provision being found in Sudan's tax legislation despite genuine search effort; Sudan's tax system centers instead on income tax, zakat, and property/transaction taxes without a dedicated cross-border anti-deferral mechanism.
No domestic FBAR-equivalent regime requires Sudanese residents to separately disclose foreign financial accounts, and Sudan is not currently a CRS participating jurisdiction, so it does not automatically exchange financial account information with foreign tax authorities under the OECD's Common Reporting Standard. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Sudan's own rules.
A dedicated participation exemption regime for dividends or capital gains from a qualifying subsidiary is not confirmed in available primary sources; dividends are instead subject to a 10% withholding tax at source, per current guidance, rather than being addressed through a distinct exemption mechanism.
As of January 2, 2024, Sudan had concluded and brought into force double tax treaties with 17 countries and regions, per the BRITACOM Secretariat, which provide the primary mechanism for relief from double taxation on income connecting Sudan to those specific treaty partners; a historical treaty with the United Kingdom (still relevant for legacy purposes) specifically provides that where income remains taxable in both countries, relief is given by the country of the taxpayer's residence, with credit given in the UK for Sudanese tax including tax spared under certain Sudanese law provisions. A broader general unilateral foreign tax credit mechanism outside Sudan's treaty network is not confirmed in available primary sources.
As of January 2, 2024, Sudan had concluded and brought into force double tax treaties with 17 countries and regions, per the BRITACOM Secretariat.