The Minister of Humanitarian Affairs has canceled remittance of income tax for employees of the United Nations, International and National NGOs until states governments are formed.
Personal income tax is charged for the income from wages and entrepreneurial activities after standard allowable expenses of twenty per cent and other expenses such as town rate and ground rate.
According to the ministerial order date the 17 April 2020, no UN, NGO and other humanitarian agency should remit personal income tax until state governments are formed.
“We have canceled personal income tax until the formation of the state governments because the national NGOs cannot pay for the default states government,” Peter Mayen confirmed to Eye Radio.
There are reportedly more than 600 NGOs, which have employed over 10,000 workers in South Sudan.
He said NGOs will later submit the taxes to NRA as arrears, after the formation of the state governments.
The establishment of state governments is being delayed by a disagreement among the peace parties.
The transitional unity government is not yet finalized as state governors are still to be appointed.
The revitalized peace agreement stated that 55 % of the state’s governors will be for the government and 27% for IO, OPP with 8% and the remaining 10 % for SSOA.
However, meetings in Juba among SPLM/A-IO, ITGoNU, SSOA, OPP ended without a compromise.
The government has been insisting on taking six states while offering two states to Dr. Machar’s SPLM-IO, one state to SSOA, and another one to OPP.
Some regional governments have introduced tax relief as a way of cushioning their citizens against the economic effects of the coronavirus pandemic.
In March, Kenya’s President Uhuru Kenyatta directed the National Treasury to offer a 100 per cent tax relief for individuals with a gross income of up to Sh24,000, about $240.
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