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Paying Taxes

The Domestic Tax Department is the arm of the Liberia Revenue responsible for the assessing collecting, enforcing and auditing all domestic revenues including property tax. Major kind of taxes collected include taxes on personal and business income, taxes on goods and services, excise tax, real property tax as well as other obligatory payments such as professional fees.

The Domestic Tax Department consists of three Divisions and three direct report Sections:

  • Large Tax Division (LTD) – is the arm of the Domestic Tax Department responsible for managing the compliance of taxpayers with gross annual turnover of above thirty million Liberian dollars (Above L$30,000,000) and who are not doing business in the natural resource sector. There are also industrial sectors that are uniquely placed in the Large Tax Division due to their functions: Banking and Insurance, and GSM Telecommunications. The LTD is headed by an Assistant Commissioner who is assisted by three Managers.

  • Medium, Small & Micro Tax Division (MSMTD) – is the arm of the Domestic Tax Department responsible for managing the compliance of taxpayers with gross annual turnover of below thirty million Liberian dollars (Below L$30,000,000). There are sectors that are uniquely placed in the MSMTD such as the Non for profit or NGO sector. The MSMTD is headed by an Assistant Commissioner who is assisted by three Managers.

  • Real Estate Tax Division (RETD) – is the arm of the Domestic Tax Department responsible for managing the compliance of owners of real property (land, building and fixed improvements) within the boundaries of Liberia. The RETD is headed by an Assistant Commissioner who is assisted by three Managers.

  • Natural Resource Tax Section (NRTS) – is the sub-section of the Domestic Tax Department responsible for managing the compliance of taxpayers doing business in the natural resource (extractive industries and renewable resources) sectors which includes mining, agriculture, petroleum and forestry. The Section is headed by a Manager.

  • Sector Ministry Section (SMS) – is a sub-section of the Domestic Tax Department responsible for monitoring the compliance of various line ministries and agencies that are involved in generating revenue for the Government of Liberia through the imposition of fees, for example, passport fees (Ministry of Foreign Affairs), business registration fees (Ministry of Commerce), resident permit fees (Ministry of Labor), etc.

  • Domestic Tax Business Office (DBTO) – is a sub-section of the Domestic Tax Department responsible for managing the compliance of taxpayers in rural areas whose annual gross turnover is below three million Liberia dollars (Under L$3,000,000).

Registration (TIN)

Every resident having a tax obligation is required to obtain a Tax Identification Number (“TIN”), but in no case may a resident obtain more than one TIN. The Minister shall by regulation provide procedures for acquiring a TIN and shall widely publish information about those procedures. No taxpayer is to be charged a fee for obtaining a TIN. A resident subject to tax withholding is required to supply the TIN to the withholding agent.

Click below to the available forms:

The following Tax Calendar and Due Dates apply:

Monthly Tax Payments

  • Personal Income Tax (5-25 %) – Withholdings on wages and salaries Due Dates: Due no later than the 10th day of the following month. Target: Employers

  • Withholding on Rent (Non-Resident 15%, Resident 10  %) Due no later than the 10th day of the following month

  • Contract Services Withholding on Services Rendered – Due no later than the 10th day of the following month.Targets: Contractors

  • Goods and Services Tax (7%-15%) – Due on or no later than the 21st day of the following month. Targets: Restaurants, Hotels, Car Renters, Telecommunications companies and Manufacturers

  • Excise Tax (2-35 %) – Due on or no later than the 21st day of the following month. Targets: Producers and sellers of alcoholic and non-alcoholic beverages

    Quarterly Tax Payments

  • Presumptive Tax (4%) – Due no later than 15 days after each quarter ( i.e., 1st quarter payment is due April 15th) Targets: Small business whose gross annual sales are $LD 200,000.00 – LD3,000,000.00

  • Advance Payment on Corporate Income Tax (2%) – Targets: All medium and large taxpayers whose gross sales are above $LD 3,000,000,00

    Annual Tax Payments

  • Real Estate Tax (0.00083%-4%) – Due between January 1st and June 30th. Targets: All land and property owners

  • Income Tax Return (Filing and Payment) – Due no later than March 31st of each calendar year (Corporate Income Tax 25 %, Personal Income Tax 5-25 %), Targets: All businesses and persons earning income from Liberia

Filing and Payment

Designated Place for Filing and Payment – A taxpayer’s tax return and tax payment are to be received on or before the due date in the Ministry office in Monrovia. Taxpayers resident or domiciled outside Liberia and required to file a tax return or make a tax payment may file the return or make the payment at the place designated by the Ministry for receiving returns in their country of domicile or in the Ministry office in Monrovia; if no location is designated, the place of filing is in the Ministry office in Monrovia.

Proof of timely filing is made by presentation of any of the following:

(1) A dated and time-stamped receipt issued by the designated place of filing and signed by a person who can be identified as a Ministry employee at the designated place of filing on the date signed.

(2) A certified copy of an approved delivery service label that includes the following: the correct name and address of the designated place for filing; the signature of a recipient who can be identified as a Ministry employee at the designated place of filing on the date signed; and the date of receipt (or other information sufficient to establish the date of delivery). Approved delivery services are: DHL, EMS and any other services designated by the Ministry.

Proof of timely payment is made by presentation of a dated and time-stamped receipt issued by the designated place of payment, indicating the amount of payment received, and signed by a person who can be identified as a Ministry employee at the designated place of payment on the date signed.

Tax Clearance – Once taxes are paid correctly, a tax clearance certificate can be requested from the LRA. It certifies that a taxpayer has complied with all known tax requirements at the time of issuance.

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