As Amended 2011 - IFRC.org

1 Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act). Subject to review and approval by the Minister of Finance. revenue code OF liberia As Amended 2011 Amended by the Consolidated Tax Amendments Act October 15, 2011 Published by Authority of the MINISTRY OF FINANCE Monrovia, liberia July 2012 i Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act). Subject to review and approval by the Minister of Finance. Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act).

2 Subject to review and approval by the Ministry of Finance. Table of Contents [Insert Table of Contents Here] liberia revenue code as Amended 2011 1 Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act). Subject to review and approval by the Minister of PART I. GENERAL PROVISIONS Chapter 1. General Provisions Subchapter A. General Provisions Section 1. Matters Regulated by the revenue code of liberia Section 2. Legal Basis for Taxation Section 3. Tax Legislation of the Republic of liberia Section 4.

3 Taxes in Effect in the Republic of liberia Section 5. Persons Regulated by Tax Legislation Section 6. Amounts Stated in Dollars Section 7. Tax and Revenues Section 8. Inflation Adjustment for the Payment of Taxes Section 9. Exempt Persons Section 10. General Definitions Section 11. Interest Rate Section 12. Tax as a Debt Due to Government of liberia Section 13. Bad Tax Debts Section 14. Interest on Overpayments and Underpayments Section 15. Anti-Avoidance Rule Section 16. Special Investment Incentives Section 17. Stability of Fiscal Regime for Mining, Petroleum, and Renewable Resources Section 18.

4 Advance Pricing Agreement Sections 19-49. Reserved Section 1. Matters Regulated by the revenue code of liberia (a) This code , which shall be referred to as The revenue code of liberia , governs taxation in the Republic of liberia . (b) The definitions and rules established by this code are employed only to govern matters connected with taxation. Section 2. Legal Basis for Taxation (a) Every person is obliged to pay the taxes for which the person is liable. (b) No one may be required to pay taxes that are not provided for by this code .

5 Section 3. Tax Legislation of the Republic of liberia (a) The tax legislation of the Republic of liberia consists of this code and regulations promulgated thereunder. (b) In the case of a conflict between this code and other legislation, the provisions of this code are applied for purposes of taxation. Concepts and terms of civil, family, and other branches of legislation of the Republic of liberia used in this code , are applied in the same meaning as they are used in these branches of legislation, unless otherwise provided by this code .

6 (c) All changes relating to taxation are instituted by amendments to this code , notwithstanding contrary provisions of other laws. revenue code of liberia as Amended 2011 2 Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act). Subject to review and approval by the Ministry of Finance. (d) Matters connected with taxation may not be included in non-tax legislation, except for provisions on the priority of tax obligations as included in the bankruptcy law. (e) Where an international agreement ratified by the Legislature has entered into force and establishes rules inconsistent with those provided by this code , the international agreement takes priority over and supersedes this code to the extent of the inconsistency.

7 (f) Privileges contemplated by international treaties on the avoidance of double taxation do not apply to a resident of a state that is party to the treaty if such resident has been used or established by another person who is not a resident of such state for the purpose of obtaining the privileges. Section 4. Taxes in Effect in the Republic of liberia The taxes in effect in the Republic of liberia are: (a) The Personal and Business Income Tax, Chapters 2-9 of this code , and royalties stated in this code ; (b) The Goods and Services Tax, Chapter 10 of this code ; (c) Excise Taxes, Chapter 11 of this code ; (d) Customs Duties, Chapters 12-18 of this code ; and (e) The Real Property Tax, Chapter 20 of this code .

8 (f) Obligatory payments required of a person under a mining or petroleum agreement with the Government of liberia in accordance the Mining Law or Petroleum Law (for example, concession fees, social development fund charges, signature bonus payments), are not taxes under this code , but may be collected according to the procedures of this code as if they were tax liabilities under this code , and the person having the obligatory payment obligation may be treated as a taxpayer. Section 5. Persons Regulated by Tax Legislation The following persons are subject to the liberia revenue code : (a) Natural and legal persons considered taxpayers in accordance with this code ; (b) All persons considered tax agents in accordance with this code ; (c) Tax offices, agencies and their employees, including the Minister and Deputy Minister and their delegates, and the offices, agencies, and employees of the revenue Department.

9 (d) Customs offices, agencies, and their employees (in cases where responsibility for the collection of tax or tariff under this code devolves upon the Commissioner of Customs); (e) The Ministry of Finance, finance agencies (in cases where tax receipt, collection, or withholding responsibility is assigned by this code to finance agencies); (f) Other agencies and officials responsible for tax collection, receipt, or enforcement; (g) Members of the Board of Tax Appeals; and (h) Any other persons whose rights, authority, or duties are determined by this code .

10 Section 6. Amounts Stated in Dollars revenue code of liberia as Amended 2011 3 Department of revenue Ministry of Finance July 13, 2012 LRC Codification (JB) (includes 2011 CTA Act). Subject to review and approval by the Ministry of Finance. (a) Accounts. Dollar amounts stated in this code are in Liberian dollars, and taxation books of account may be kept in Liberian dollars or US dollars ( but if kept in US dollars the Liberian dollar equivalent of taxable income and tax must be shown in the financial statement). Tax may be assessed either in Liberian dollars or US dollars and may be paid in Liberian dollars or US dollars.