Liberia - Register for Income Tax

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Procedure

Employees and other natural persons with income Subject to Withholding.A natural person is NOT REQUIRED TO FILE An Annual Income Tax Return if:

• He/she derives 90 percent or more of gross income from income subject to Liberian income tax withholding,whose gross income is less than L$5,000,000
• During the tax year owners of real estate having a fair market value of less than L$5,000,000.
• But such a natural person is required to file a declaration (made under penalties of perjury) stating that 90 percent or more of his/her gross income is subject to Liberian income tax withholding the gross income for the year being less than L$5.000,000.

Below is the procedure to file income tax.

Part

I:Get your Personal Details

1. Name,
2. Address,
3. Tax
4. Identification Number (TIN),
5. occupation

Part II

• Income Lines. Then list all the different sources of income subject to tax;

Income derived from all sources must be declared;and these include. Income from Wages & Salaries including cash and non - cash items,business,rents and royalties, dividends and interest, partnerships,estates and trusts,gain on sale of property and any other income. All of these are supported by schedules if they were earned during the tax year. Then they will give a Sum Total of the Income in order to calculate your income tax.

Part III

• The look at all the deductions that are allowed under the law are declared in this section
• They include: Personal Exemption,charitable contribution to GOL, govt agencies approved to receive donations or a registered charity, and NET Loss carry forward for businesses. Charitable contribution is the lesser amount of 15% of taxable income and the actual amount of the contribution.
• Sums up the total for deduction.

Part IV

Tax Liability

Tax liability is determined by subtracting Total Deduction and entering the Net Taxable Income and applying the tax rate using the tax table of Section 200. If it is Net Taxable Loss, enter NIL for for tax liability.

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Required Documents

• Completed and filed income tax registration form
• Tax Identification Number (TIN)
• Identification documents

Office Locations & Contacts

Ministry of Finance

Amara Konneh - Liberia's Finance Minister

Department of Revenue

Broad & Mechlin Sts

Monrovia, Liberia

Hotline: 026-202-543

TEL. 027-202-004

TEL. +231 6243490

Website: http://www.mof.gov.lr

Website: http://www.mofrevenue.gov

http://mofrevenue.gov.lr/doc/Individual%20Income%20Tax%20Return.pdf

http://www.mof.gov.lr/content.php?sub=80&related=27&res=80&third=80

Ministry of Finance

Department of Revenue:

Mr. Gweh Tarwo

Director, Revenue Forecasting Unit, MoF

Tel. +231 886 523 388

Email: [email protected]

Ministry of Finance

Mr. Del Francis Wreh

Senior Financial Analyst, MoF

TeL.+231 886 553 789

Email: [email protected]

Ministry of Finance

Macro-fiscal Analysis Unit:

Mohammed Sherif

Chief Economist, MoF

Tel. +231 886 567 684

Tel.+231 776 000 057

Email: [email protected]

Ministry of Finance

Alice Williams (Mrs)

Budget Examiner, MoF

Tel. +231 886 511 259

Email: [email protected]

Ministry of Finance

Department of Budget:

Augustine Blama

Senior Budget Policy Advisor, MoF

Tel. +231 880 657 364

Email: [email protected]

Ministry of Finance

Sidiki Trawally

Director of Communications, MoF

Tel.+231 886 109 513

Email: [email protected]

Ministry of Finance

Darlington Smith - Budget Spokesman

Tel. +231 886 534 489

Tel. +231 776 325924

Email: [email protected]

Eligibility

• Paid by all natural persons who exercise employment or work in Liberia no matter the agency or entity or the kind of work being done or citizens working with the Liberian Government in foreign service. Paid by non - residents natural and legal persons on the Liberia - source income (Chapter 8 RCL)

Fees

• Taxes on salaries are levied at a rate of 15 percent on the first 5000,000 Liberian pounds.
• Any income above that is assessed at 30 percent.
• Fees that are charged by professionals such as engineers, accountants, and lawyers are taxed at rates that range from 15 to 30 percent, depending on source and total annual income.
• Profit that is made by an individual from a commercial endeavor those are subjected to corporate tax and are taxed at a rate of 15% to 40%
• Income derived from land ownership, construction, or rentals is also taxed at a rate of 15 to 40 percent.
• Profit from dividends proceeds, executive director's fees, capital interest on investment, and other gains on investments are subject to a 32-percent withholding tax.
• There is also a progressive general tax on income that reaches 65 percent for personal income that exceeds 5000,000 Liberian pounds in one year which an individual or cooperation has to pay .

Liberian income tax can be anything from 10 to 20 percent, and you need to be sure you are placed in the correct tax brackets.

Validity

The income tax is valid for a year.

Documents to Use

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Sample Documents

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Processing Time

The processing can take 2 days or less if all the necessary documents are submitted on time.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

• The income tax is imposed on the net amount after an arbitrary deduction for expenses.
• Amounts are due at the end of the year and charged on any income derived from legal activity such as professional services, at 3 percent on commercial services and at 10 percent on commissions paid to commercial agents.

Required Information

1. Name
2. Address
3. Marital status
4. Date/Country/place of birth
5. Sources of income
6. Type of business activity
7. Tax agent
8. Referee
9. stamp duty fee

Need for the Document

Personal income tax is assessed according to a progressive scale specified in tax law of Liberia.PIT/PAYE or Personal Income Tax is defined as taxes paid by ALL gainfully employed individuals on their total gross income (aggregate of all economic benefits of whatever kind that the tax payer derives), using the PIT table in Section 201 of the RCL of 2000.

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Other uses of the Document/Certificate

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e.g. Birth Certificate can be used as proof of identity.

External Links

http://mofrevenue.gov.lr/doc/Individual%20Income%20Tax%20Return.pdf

http://www.knowyourcountry.com/liberia3.html

Others

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