Liberia, Republic of

Taxable period

The taxable period for individuals is the calendar year, unless a taxpayer is authorised to use a different fiscal year.

Tax returns

PIT returns must be filed by 31 March of the following year. However, individuals who earn at least 90% of their income from employment are subject to withholding.

Liberia operates a self-assessment system, meaning taxpayers are responsible for calculating and reporting their own tax liability.

Payment of tax

Payroll tax (employment income withholding)

Employers in Liberia are required to withhold payroll tax from employees’ salaries and remit it to the Liberia Revenue Authority (LRA). This payment must be made on or before the 10th day of the month following the month in which the salary was paid.

WHT on other payments

WHT also applies to payments such as rent, dividends, interest, and fees paid to contractors or service providers. The payer is responsible for deducting the appropriate tax and remitting it to the LRA by the 10th day of the month following the payment.

Payment methods

Taxes can be paid through several channels: the LRA’s e-filing platform (mandatory for large taxpayers), mobile money services, designated commercial banks, or in person at LRA offices.

Tax audit process

Under the LRC, the tax audit process is managed by the LRA and is designed to ensure compliance with tax laws through verification of taxpayer filings and payments.

Selection and notification

The LRA may select individuals or businesses for audit based on risk assessments, random selection, or discrepancies in tax filings. Once selected, the taxpayer is formally notified in writing, specifying the period and type of taxes under review.

Examination and documentation

During the audit, the LRA examines financial records, tax returns, receipts, and other relevant documents. Taxpayers are required by law to maintain accurate records and provide them upon request. The audit may be conducted at the taxpayer’s premises (field audit) or at the LRA office (desk audit).

Assessment and resolution

If discrepancies are found, the LRA issues a notice of assessment detailing the additional tax due, along with any penalties or interest. Taxpayers have the right to protest or appeal the assessment.

Statute of limitations

The general period beyond which the Commissioner is unable to raise assessments is seven years.