Tax
The Taxation Act 2009 over an economy where oil supplies nearly all revenue
The Taxation Act 2009, as amended, provides for personal and business profit tax, excise and a sales tax rather than a full VAT. Oil revenue has historically supplied the overwhelming majority of government income.
Key rules
- Jurisdiction — National. The National Revenue Authority was established in 2016 to consolidate collection.
Governing law
- Taxation Act 2009as amended
- Petroleum Revenue Management Act 2013
- Customs Act 2011
In practice
Non-oil taxation is thin both in law and in yield: business profit tax and personal income tax apply at modest rates, and indirect taxation is a sales tax rather than a credit-invoice VAT, which limits its reach into supply chains. The National Revenue Authority was created in 2016 to professionalise collection away from ministry control. The fiscal reality is oil: the Petroleum Revenue Management Act provides for a stabilisation account and a future generations fund, transfers to producing states, and audit requirements, and the extent to which those provisions are followed has been repeatedly questioned by audit bodies and civil society. Transit fees payable to Sudan for pipeline export, and the interruption of that route by Sudan's war, affect revenue more than any domestic tax measure. Collection performance and current rates cannot be verified reliably.