CONSOLIDATED TAX AMENDMENT ACT

As Liberia strives to encourage taxpayers to declare the actual amount of taxes and pay these taxes on a regular basis, they have adopted and Economic Stimulus Taxation Act called "Consolidated Tax Amendment Act (CTA)". This act has considerably reduce some of the Taxes rate, reduce and increase certain taxes or penalties rates and disregard certain penalties. Currently the following rules apply:


Personal Income Tax ......Graduated rate (0% to 25%) instead of 2% to 35%
Presumptive Tax .............25% of profit instead of 2% of gross income
Withholding on Payments to Resident and Nonresident rates are as follows:


Tax kind
Nonresident
Resident
SOURCE
INTEREST
15%
10%
Consolidated Tax Amendments – Section 806 & 905
DIVIDEND
15%
10%
Consolidated Tax Amendments – Section 806
ROYALTIES
15%
10%
Consolidated Tax Amendments – Section 806
LICENSE FEES
15%
10%
Consolidated Tax Amendments – Section 806
RENT
15%
10%
Consolidated Tax Amendments – Section 806
BOARD FEES
15%
10%
Consolidated Tax Amendments – Section 806
MANAGEMENT FEES
15%
10%
Consolidated Tax Amendments – Section 806
COMMISSIONS
15%
10%
Consolidated Tax Amendments – Section 806
PERSONAL INCOME TAX
15%
(0%-25%)
SECTION 200
SPECIAL RULE FOR PAYMENTS BY MINING PROJECTS, PETROLEUM PROJECTS, AND RENEWABLE RESOURCE PROJECTS
INTEREST
5%
5%

DIVIDEND
5%
5%

PAYMENTS FOR SERVICES
6%
6%

PAYMENTS FOR ACQUISITION PRICE
15%
10%

Comments

Post a Comment

Popular posts from this blog

LRA New Tax Administration System (ELITAS)

Image
The Liberia Revenue Authority under the leadership of the Commissioner General (Thomas Doe Nah) has completed the development of a local tax administration system termed ELITAS. This system is going to replace the global tax administration system called SIGTAS (System Integrated Tax Administration System). The Newly developed sytem will be used for all revenue collection at the Liberia Revenue Authority excluding (Custom Duties) which will be collected through ASYCUDA. The System has already been implemented in the Medium Tax Section (applicable to all Medium Tax payers) and has been working pretty fine. The LRA in partnership with the Liberia Institute of Tax Practioner (LITP) has begun certificating institute member through their licencing scheme to enable only license tax practitioner to file in the new system. Our Chairman/CEO, Mr. G. Darlington Dahn, I is a licensed tax practitioner with over 14 years of experience in Tax Adminsitration (LRA) and Tax Advisor (Private Auditing F
Read more

LIBERIA REVENUE CODE OF 2000 AS AMENDED

The Tax Administration of Liberia reviewed the Revenue Code of Liberia Act of 2000 and came up with amendments to have been enacted in 2010. These amendments were compiled and called the Consolidated Tax Amendments of 2010. These amendments were sent to the House of Representative and Senate for enactment into law in 2011. By November 2011, The House was able to fully enact and published the "Revenue Code of Liberia Act of 2000 as amended" Several areas of the tax laws were affected, Some of the key areas affected are as follows: 1. Advance Payment of income tax - which was 2% of Gross Turnover was repeal. The amended code read that : If you filed tax return in previous year, your advance payments plus any withholding should be not less than 100% of the tax liability in previous period. If you were not required to file in the previous year, your advance payment plus any advance tax should be equal to atleast 90% of your income tax liability for the period. 2. Income t
Read more

Paying Taxes in Liberia

The Ministry of Finance is the regulatory body for all Tax matters in Liberia. The Ministry controls taxes from internal revenue and custom duties. The internal revenue are revenue generated internally excluding import duties, export duties, and Goods and Services Tax levied on imports. In this issue: Internal Revenue: LICENSE AND REGISTRATION The law requires institutions that want to do business in Liberia to file Article of Incorporation with the Ministry of Foreign Affairs which is the first step to establishing a business in Liberia.. The cost to process the Article of Incorporation of a Foreign Company is approximately US$850.00 excluding other miscellaneous processing fees. All business operating in Liberia are to obtain a business registration certificate from the Ministry of Commerce and Industry. The cost of the main branch is US$900.00 and subsequent branches opened are to pay 50% of the amount mentioned above. Amount is payable 90 days after establishment and on or before t
Read more