The Liberia Revenue Au5thority is the newly created arm of government responsible for the assessing, collecting, enforcing, and auditing all tax revenues. The major kind of taxes collected include taxes on personal and business income, goods and

services, excise tax, and real property tax, as well as other obligatory payments such as professional fees.
The legal basis of taxation in Liberia is currently the Revenue Code of 2010. A revision to the code that simplifies taxes and lowers rates is now available at the Liberia Revenue Authority. Tax may be paid in Liberian dollars or US dollars.

 

Highlights from Then New Revenue Code

Corporate Taxes
Tax on Company Income

  • Maximum annual tax on net profits received by the companies on income derived from their opearrions with Liberia reduced to 25 percent; down from 35 percent, with a maximum for mining companies remaining at 30 percent.

  • Income derived from sources outside Liberia is exempt if the majority of the voting power of a domestic company is held by foriegners or nonresidents.

  • Earnings from the operation of maritime vessels carrying the Liberian flag are exempt, unless derived exclusively from coastwide operation by resident corporations.

Trade Taxes

  • Most Import duties are levied as ad valorem duties on the CIF value of imports and range from 2.5 percent to 25 percent. Some items are subject to specific, rather than ad valorem, duties.

  • Liberia is migrating to the ECOWAS common external tariff. Exemptions from import duties apply, among other things, to intermediate goods used in agriculture and some medical and fire-fihting supplies; imports granted by special contracts to the large concessionaries operating in Liberia; and imports granted to investors with an investment incentive contract.

  • Export duties are levied on forestry products. There is a customs user free of 2.5 percent on unprocessed exported goods.

  • Royalty fees are levied on mineral exports. The fee varies from 3 to 4.5 %.

  • An excise tax is levied on select products. The excise rate varies from 5 percent to 30 percent.

  • A goods and services tax of 7 percent also applies to select produccts.

Annual Tax Rates – Resident Individuals

• The annual personal income tax of every resident individual in Liberia is determined in accordance with a

schedule.

Tax Rate

A legal entity resident in Liberia is taxed as follows

General Company: Rate of Tax is 25%, Remarks as; General company
Life Insurance: Rate of Tax is 4%, Remarks as; Applies where at least 30% of the income of the enterprise is

Agriculture and Renewable Energy

from life insurance and only on that portion from life insurance proceeds.

Resource Projects: Rate of Tax is 15% to 25%, Remarks as; for rice production projects Mining and Petroluem

Companies:

Rate of Tax is 20% to 30%, Remarks as; Additional surtax on high-yield mining

projects.