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Paying Taxes in

Liberia

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Liberia to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 5 57 25% of taxable income or 2% of turnover Taxable income or turnover 35.35
Social security 12 53 4.75% gross salaries 5.36
Municipal tax 1 fee scale type of business 2.62
Property tax 1 1.5% Assessed Value of building 2.22
Tax on interest 0 15% Money market account interest 0.38
Social security contributions on employee 0 jointly 3% gross salaries 0.00 not included
Goods and Service Tax 12 31 7% value added 0.00 not included
Fuel tax 1 value of fuel consumption 0.00 small amount
Stamp duty 1 LD 100 revenue stamps required on legal documents 0.00 small amount
Totals: 33 139.5 45.9
  • Answer
    Profit tax (% of profit) 35.4
    Labor tax and contributions (% of profit) 5.4
    Other taxes (% of profit) 7.0
    Answer Score
    Postfiling index (0-100) 96.8
    VAT refunds N/A
    Does VAT/GST exist? No
    Frequency of VAT/GST refund submission N/A
    Does a VAT/GST refund process exist per the case study? N/A
    Restrictions on VAT refund process N/A
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A No VAT
    Time to obtain a VAT refund (weeks) N/A No VAT
    Corporate income tax audits 93.6
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 5.0 93.6
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Liberia Board of Tax Appeals
    Is the appeal authority independent? Independent Department outside tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 60 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.