The Domestic Tax Department (DTD) is responsible to overseeing and managing all Domestic Taxes including the following: Personal Income Tax (PIT), Corporate Tax (CIT), Pay As You Earn (PAYE), and Goods and Services Tax (GST) in Sierra Leone. Its principal function is to ensure that all taxpayers are registered, file returns, assessed, collect, provides taxpayers services and education, and ensure they pay all domestic taxes due and carry out period audit to confirm completion and accuracy of all returns filed and payments made on the due dates. 

The department is divided into two main functional areas namely headquarters and operational. The headquarters consist of the Commissioner, Deputy Commissioner and Design and Monitoring (D&M) Unit.

• The Design and Monitoring unit is charged with the responsibility of developing operational policies, procedures and processes and guidance to the operational division of domestic tax department. The D&M report directly to the DTD Commissioner and monitor the operational division in service delivery of the department. Design and Monitoring division simplified, harmonized, rationalized revenue legislation procedures and processes of the department and formulate taxpayer educational policies and training of staff on technical details of the operations including tax laws and other legislations that relate to revenue mobilization.

• The operational units of the domestic tax department are segmented into Large Taxpayers Office (LTO), Extractive Revenue Industries Unit (EIRU), Small & Medium Taxpayers Office (SMTO), and Tax Field Audit. Each of these operational units and also the Design and Monitoring divisions is headed by an Assistant Commissioner.

The department administers the following taxes in details: 

• Corporation Income Tax (CIT) 
• Personal Income Tax (PIT)
• Goods and Services Tax (GST)
• Capital Gains Tax (CGT)
• Mineral Royalties Tax
• Rent Tax, 
• Pay As You Earn (PAYE)
• Tax on Gambling
• Betting & Lotteries 
• Domestic Excise Tax 
• 6.5% Withholding Tax
• 10.5% Withholding Tax 
• Payroll Tax
• Dividends 
• Foreign Travel Tax
• Withholding tax on professional services fees  and other similar levies imposed on individuals, businesses, and other entities operating within Sierra Leone as relate to an income from a source in Sierra Leone.

• Self-assessment of taxes is implemented in the Domestic Tax Department and the taxpayer is allowed to revise this provisional tax assessment (which comprised of corporate and personal income tax) anytime between the fourth 4th and tenth 10th month of the assessing year.  This is submitted by the taxpayer at the start of every tax year and payment made on quarterly basis on four equal instalments as follows (assuming the calendar year of 1st January – 31st December being the accounting year of a taxpayer as follows:

  On or before 15th March 

  On or before 15th June 

  On before 15th September

  On or before 15th December

• Failure of taxpayers to provide provisional assessment to the Domestic tax commissioner will leave him with no option but to raise an assessment based on best of judgement and enforce quarterly collection of same as indicated above.

• Taxpayers are further obliged to file audited annual financial statement 120 days after the end of the financial year to confirm actual result of trading operations for the year and pay any additional tax known as fifth instalment on filing of annual returns. These annual accounts and returns are then subject to examination and audit as the case maybe.

The domestic tax department designs, implements, and maintains procedures and processes for the collection of various domestic taxes consistent with the tax laws. This entails enforcing procedures so that taxpayers can register, file returns, self-assessment, pay their taxes, and get any appropriate refunds or credits as the case maybe.

The department helps and guides taxpayers understand their tax obligations, rights, and responsibilities. It provides the gateway for taxpayer registration and engagement. This may involve providing details on applicable tax laws, regulations, deductions, exemptions, and other tax related topics. This gateway provides links between the  taxpayers and the authority and other institutions that are vital in taxpayer registration and support services. It also helps to inform and make tax policies simple for taxpayers to facilitate voluntary compliance in order to reduce tax fraud and evasion.

Its crucial task is to ensure that taxpayers follow the tax laws. To provide uniformity and standard procedures and processes for managing returns to increase effectiveness in income tax revenue and domestic revenue collection through fostering filing compliance in line with the tax laws. For the purpose of ensuring that tax returns are accurate, and taxpayers pay the correct tax at the right time. The department carries out audits, investigations, assurance visit and assessments. It also conducts enforcement action against non-compliant taxpayers, which may lead to levying fines and penalties as well as initiating legal proceeding when necessary.

The department embarks on tax educational initiatives to enhance taxpayer awareness and understanding of tax obligations, laws, and regulations. These include workshops, seminars, informational campaigns, and educational materials in collaboration with the Public Affairs and Tax Education (PATE) unit under the Legal and Corporate Services Department to aid taxpayers meet their tax obligations more effectively and efficiently and provide customer care services and support services to taxpayers with a view to aiding compliance.

The Domestic Tax Department plays a vital role in formulating and recommending changes to tax policies and regulations based on feedback and risk identified to ensure that it enables revenue goals to be met, that is acceptable to taxpayers and contributes to economic development through the Ministry of Finance. The department also proposes amendments to existing tax laws, regulations or suggesting changes to the current ones where the need arises.

The Domestic Tax Department collaborates with other governmental agencies, such as National Social Security Insurance Trust (NASSIT), National Civil Registration Authority (NCRA), Corporate Affairs Commission (CAC), Office of Administrator and Registrar General (OARG) and other MDAs to name a few on taxpayer information and vital statistics to support and aid domestic tax administration.  It also liaise with other internal departments of the authority such as the Custom Services Department as relates to imports and exports trade statistics and collaborate both bilaterally and otherwise to ensure that taxpayer information is fully captured and used as basis of assessment, audit and investigation as applicable.