Free invoice generator and tax tools for Liberia

A small business in Liberia deals mainly with the Liberia Revenue Authority (LRA). Companies pay income tax of 25% of taxable income, or a 2% minimum tax on gross income if that is higher (Revenue Code s.200). Small taxpayers with turnover under $3,000,000 pay a 4% presumptive tax instead. Quarterly advance payments are made during the year, and income tax is withheld from wages and from contract payments, with remittance due by the 10th of the following month. Goods and services tax (GST) is charged only by registered manufacturers on goods made in Liberia, and by providers of listed services such as hotels, restaurants, telecommunications, electricity and professional services; excise tax applies to alcohol, tobacco, sugar-sweetened drinks and some luxury goods. Real property tax is a separate annual bill paid between 1 January and early July.

On payroll, employers also pay social security contributions to NASSCORP, the National Social Security and Welfare Corporation, which is separate from the LRA.

The most recent reform is the Liberia Tax Amendment Act of December 2025, approved on 24 March 2026 and printed on 1 April 2026. It raised GST from 1 May 2026, toughened penalties for tax evasion, made a non-resident service provider a permanent establishment after 30 days in Liberia, and from 1 January 2027 indexes specific excise rates every year. A full value added tax is due to replace GST on 1 January 2027.

Under section 200(c) of the Revenue Code, any person or company with annual turnover below $3,000,000 is a small taxpayer and pays presumptive tax of 4% of turnover instead of income tax. It is a final tax, collected through withholding and quarterly advance payments of 4% of gross income during the year (s.904(b)), and a small taxpayer may elect to be taxed under the regular rules instead, which means filing a full income tax return. A natural person with turnover below $200,000 is a petty trader and pays a fixed annual amount: $2,400 when trading from a fixed structure with roof and walls, $1,200 from an open structure with a roof, and $480 otherwise ($240 outside Montserrado County). The Code writes these amounts with a dollar sign, while the LRA's business-tax page lists the bands in Liberian dollars, so confirm the currency with the LRA when you register.