Liberia, Republic of

Employment income

Employment income includes all earnings from employment, including benefits received in the form of non-cash property or benefits-in-kind.

Benefits-in-kind/non-cash benefits are valued at 100% market value and are excludible from the income of the employee except where the value is more than LRD 100,000 per tax year.

Payments received under a pension, retirement, or annuity arrangement are all items included in gross income of an individual.

Business income

Receipts from the operation of a business, profession, vocation, trade, or proprietorship are included in the gross income of the individual and taxed accordingly at their respective resident or non-resident tax rates.

Capital gains

Gains on the disposition of properties are included in the gross income of an individual. However, gains on the sale of personal-use property are excluded from the income unless the amount derived from the sale is equal to or more than LRD 1.6 million.

Dividend income

Non-exempt dividend income is included in the gross income of the individual and is taxed at a rate of 15%.

Interest income

Non-exempt interest income is included in the gross income of the individual and taxed at a rate of 15%.  

Rental income

Rental income is included in the taxable income of the resident person and is taxed at applicable rates. Taxes are withheld at the rate of 10%, and the withholding tax (WHT) credit can be claimed by the taxable person.

For non-residents, the rate is 15%.

Exempt income

Under the Liberia Revenue Code (LRC), the below are exempt incomes:

• Sickness, disability, or death benefits: Payments received on account of illness, injury, or death of a natural person are excluded from income of the recipient.
• Gifts and transfers by death: Property received in a donative transfer or transfer by death is excluded from the income of the recipient.
• Non-cash benefits provided by an employer up to LRD 100,000.
• Tax-exempt government obligations: Interest on an obligation issued by the Republic of Liberia and declared by the government to be a tax-exempt obligation is excluded from the income of the holder of the obligation.
• Personal-use property.
• Interest for small savers: Interest of less than LRD 200 per year is excluded from income and is not subject to tax withholding.