a. Equipment and machinery, raw material, capital spare parts and other goods to be used in any investment project are tax exempted. 1.5% custom fee and 0.5% ECOWAS trade levy is applicable.
The cost of equipment and machinery used in the year the asset is placed into service is eligible for a tax deduction of up to 30 %
The construction cost of a new hotel or tourist resort is eligible for a tax deduction of up to 30 %
The buildings and fixtures used to manufacture finished products with at least 60% of local raw material are
eligible for a tax deduction of up to 10 %
The above are eligible for further tax deductions of between 5 to 12.5 percent if the invested is placed in an economically depressed region. Additional deductions are available if the investment creates more than 100 jobs.
Special Opportunities for Liberian-Owned Businesses
The small business empowerment act requires that 25% of Public procurement for Micro Small and Medium Enterprises be given to Liberian-owned businesses.
In 2004, the small businesses empowerment act requires signed into law and created the Bureau of small business administration (SBA) of the ministry of Commerce and Industry. The SBA’s purpose tis to assist, promote and foster the interest of Micro, Small and medium-sized Enterprises (MSMEs) by ensuring that they receive their fair share of procurement contracts for the provision of goods and services to the government. The small business empowerment act requires that, in each fiscal year, at least 25% of public procurement contracts are allocated and provided to Liberian- Owned MSMEs. The Liberian Government wants to encourage local procurement and to help local businesses expand their capacity.