Liberia legal and accounting and tax considerations in 2024

1. The standard corporate tax rate levied on all net profits derived from Liberia is at a rate of 25% of taxable income or 2% of turnover for general companies while mining and petroleum companies pay corporate tax at the rate of 30%. Tax returns are filed yearly and the fiscal year runs January 1st to December 31st so taxes must be filed by the 31st of March of the subsequent fiscal year;
2. Branches pay a corporate tax rate of 25% and there is no branch remittance tax in Liberia;
3. There is no VAT in Liberia but goods and services tax is levied at the rate of 7%;
4. Capital gains is not taxed separately and is subject to the applicable standard corporate tax rate;
5. Withholding tax levied on i) interest paid to non-residents at the rate of 15% ii) royalties paid to non-residents at the rate of 15% and royalties paid to mining companies at the rate of 5% iii) dividends paid to non-residents at the rate of 15% iv) rental income paid to non-residents at the rate of 15% and v) management and technical services fees paid to non-residents at the rate of 15%;
6. Losses may be carried forward for a period of five years and may be offset against capital gains on the disposition of the investment within a fiscal year;
7. Stamp duties are levied at variable rates between 1% to 12.5% on bills, agreements, promissory notes, bonds, leases and power of attorney letters;
8. Employers must submit social security contributions to the relevant authorities on behalf of their employees at the rate of 4.75%;
9. Liberia does not have exchange controls and entities may repatriate funds and profits from the country. Investors may open and operate foreign exchange accounts in Liberia and use such foreign exchange for the operation of their investments;
10. Liberia has concluded double tax avoidance treaties with Germany and Sweden;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations;
13. All corporations that have either issued bearer shares or elected to retain the ability to issue bearer shares in its Articles of Incorporation must annually submit affidavits to the Registrar on or before the anniversary date of incorporation.