Who is a Taxpayer?
A taxpayer is a person or organization (such as a company) subject to pay a tax. Modern taxpayers may have an identification number (TIN), a reference number issued by the LRA to citizens or firms.
A taxpayer is an individual or entity that is obligated to make payments to municipal or government taxation-agencies, in this case, Liberia Revenue Authority. Taxes can exist in the form of income taxes and/or property taxes imposed on owners of real property, along with many other forms. People may pay taxes when they pay for goods and services which are taxed.
The term “taxpayer” often refers to the workforce of a country which pays for government systems and projects through taxation. The taxpayers’ money becomes part of the public funds, which comprise all money spent or invested by government to satisfy individual or collective needs or to generate future benefits. For tax purposes, business entities are also taxpayers, making their revenues and expenditures subject to taxation.
What is a Tax Identification Number (TIN)?
A Taxpayer Identification Number is your primary source of Identification as a taxpayer. It is used to identify you with the Liberia Revenue Authority, and the Republic of Liberia as a whole.
It is a 9-digit number beginning with 5
Ex. 5********
According to Section 53 of the Liberia Revenue Code, every legal resident having a tax obligation within Liberia should have a TIN. It is given to every Taxpayer free of charge, and no taxpayer should have more than one TIN.
Tax Clearance Information
What is a Tax Clearance Certificate?
A tax clearance certificate is an instrument issued by the Liberia Revenue Authority (LRA) that certifies that a taxpayer has complied with all known tax requirements at the time of issuance.
How long does it take to get a Tax Clearance Certificate?
Normal processing time for a complete and accurate tax clearance certificate application is 1 to 4 working days. For incomplete applications (missing information, missing supporting documentation and/or outstanding tax liabilities) processing may take up to 5 working days. If all documentation and tax obligation issues are not settled within these 5 business days, a new application is required.
How much does it cost to get a Tax Clearance Certificate?
Tax Clearance Certificate is absolutely free.
Why do I need a Tax Clearance Certificate?
A Tax Clearance Certificate is required and useful when you want to:
- bid on or receive payment for a government contract
- clear goods in commercial quantities from a port of entry (as per Risk Profile)
- apply for a bank loan
- contest a public election
- obtain payment from government for the sale of goods and services
- traveling purposes
- apply for Duty Free (As per Risk Profile)
- confirm closure of a business entity
- effect export of goods from Liberia (As per Risk Profile)
- transfer Profit, Dividends, Interest and Royalties in excess of US$100,000.00 from Liberia to place or country outside of Liberia
- other activities that may necessitate the request for tax clearance
For how long is a Tax Clearance Certificate Valid?
There are six (6) kinds of Tax Clearances didvided into three (3) categories as follows:
- Conditional (Provisional) Tax Clearance: Provisional tax clearance certificates are issued to new business or businesses that are not fully tax compliant.
- 45 Days
- 60 Days
- 90 Days
- Regular Tax Clearance: Regular tax clearance certificates are issued to businesses that are fully tax compliant.
- 120 Days
- 180 Days
- Annual Tax Clearance: Annual tax clearances certificates are issued to businesses and individuals that have been audited and are fully complying with all the applicable tax laws and other relevant regulations.
- 360 Days
Taxpayer Bill of Rights
- Right to Pay Only The Correct Amount of Tax
All taxpayers are to receive the benefits, credits, and refunds to which they are entitled to under the law and to pay no more and no less than the correct amount required under the law. - Right to Privacy and Confidentiality
Taxpayers have the right to confidentiality of their information provided to the Liberia Revenue Authority (LRA). A taxpayer’s information will be used only for purposes allowed by law. Only those persons who are authorized by law, and who require the information to administer programs and legislation, have the right to access the personal and financial information of taxpayers. - Right to Professional, Courteous, Efficient, Transparent and Fair Service
Taxpayers are to be treated courteously and with consideration at all times, including when the LRA requests information or arranges interviews and audits. Integrity, professionalism, respect and cooperation are core values that reflect our commitment to giving taxpayers the best possible service. - Right to Complete, Clear and Timely Information
Taxpayers have the right to complete, accurate and timely information that will explain in plain language the laws, policies and procedures regarding obligations and entitlements. - Right to Consistent Application of the Law
The Revenue Code of Liberia Act of 2000 and all amendments including regulations pertaining thereto shall be applied consistently so that every taxpayer gets his/her/its entitlements and pays the legitimate amount. - Right to Appeal and Judicial Review
Taxpayers are entitled to a formal review if they believe that the Commissioner General or any officer has not applied the law correctly or that they have not received their full entitlements under the law. An Appeals Officer shall conduct a formal and impartial review. Filing an objection (an appeal in the case of assessments) will begin with an Appeals Officer. If the matter is not resolved to the taxpayer’s satisfaction, the taxpayer is entitled to appeal to the Board of Tax Appeals or Tax Court. - Right of Refusal to Pay the Full Income Tax Amounts in Disputes before you have had an Impartial Review
A taxpayer is required to make a partial payment of thirty percent (30%) of the tax amount in dispute excluding payment of interest and penalty pending the decision of the Board of Tax Appeals. After the review, if the Board of Tax Appeals finds the taxpayer’s protest to be contrary to the law or procedure, the taxpayer will be requested to make payment of the remaining seventy percent (70%) plus penalty and interest. If the Board of Tax Appeals finds the taxpayer objection or protest to be correct, the partial payment of thirty percent (30%) will be refunded and accrued interest will also be paid by the LRA. - Right to a Service Complaint and Redress
A taxpayer can expect that if he/she/it lodges a complaint about the service provided from the LRA, he/she/it will be listened to and given the opportunity to explain the situation.
The LRA will deal with all complaints promptly, impartially and in confidence, and it will provide a formal explanation of its findings. - Right to Notice on Audit
Any notice or document sent by tax authorities must be written, signed by an authorized tax official, noting the taxpayers’ last name, and must carry the official stamp of the Republic of Liberia. LRA will take into account the costs of compliance. when administering tax legislation. We recognize the need to minimize your cost including time. - Right to Expect the LRA to be Accountable
A taxpayer has the right to expect the LRA to be accountable for what it does. When a decision is made about a tax obligation, the LRA will explain that decision and inform the taxpayer about his/her/its rights and obligations in respect to that decision. - Right to Refunds and Claims
Taxpayers are entitled to receive the benefits, credits and refunds in accordance with the law. They may file a claim for refund if it is established that taxes have been overpaid. The claim must be filed within 3 years from the date you file your original return or 2 years from the date the tax is paid, whichever is later. The law generally provides for interest on the refund if it is not paid with in 45 days of the date the taxpayer’s return is filed or claim for refund is made. - Right to be Represented by the Person of your Choice
A taxpayer has the right to be represented by a person of his/her/its choice in the appeal process. However, decisions from such representation shall be legally binding.
Customs Education
What are the procedures for importation?
- Fill out an electronic declaration, and attach scanned copies of required documents.
- Submit your declaration.
- Customs does a Compliance review and validation of your declaration.
- You receive an electronic payment notice if your declaration approved
- Make your Payment
- Terminal operator receives a Release Order after payment is made.
- Terminal operator releases shipment
- Customs does a final Electronic Clearance
What are the Required Documents for importation?
Required Documents for Imports
- Commercial invoice
- Packing list
- Bill of laden or airway bill
- Clean Report of Findings
What is Temporary Importation?
What are the procedures for Temporary Importation?
Step 1. Registration of electronic declaration (Including attachment of scanned required
documents) by declarant
- Automatic selectivity triggered by the system
Step 2. Compliance review and validation of declaration by Customs
- Automatic electronic payment notice to declarant
Step 3. Payment by declarant
- Automatic release order to terminal operator
Step 4. Release by terminal operator
Step 5. Final electronic clearance by Customs
What are the required documents for temporary importation?
Required Documents for Imports
- Commercial invoice
- Packing list
- Bill of laden or airway bill
- Guarantee (150% of estimated duties & taxes)
What are the procedures for warehousing?
Step 1. Registration of electronic declaration (Including attachment of scanned required documents) by declarant
- Automatic selectivity triggered by the system
Step 2. Compliance review and validation of declaration by Customs
- Automatic release order to terminal operator
Step 3. Release by terminal operator
Step 4. Electronic clearance for warehousing by Customs
What are the required documents for warehousing?
Required Documents For Warehousing
- Commercial invoice
- Packing list
- Bill of laden or airway bill
- Clean Report of Findings
- Guarantee (150% of estimated duties & taxes)
What are the procedures for transit?
Step 1. Registration of electronic declaration (Including attachment of scanned required documents) by declarant
- Automatic selectivity triggered by the system
Step 2. Compliance review and validation of declaration by Customs
- Automatic electronic payment notice to declarant
Step 3. Payment of transit fee by declarant
- Automatic release order to terminal operator
Step 4. Release by terminal operator
Step 5. Electronic clearance for transit by Custom
What are the required documents for transit?
Required Documents for Transit
- Commercial invoice
- Packing list
- Bill of laden or airway bill
- Guarantee (150% of estimated duties & taxes)
What are the procedures for doing a manual declaration at a land border?
Step 1. Registration of manual declaration (Including attachment of scanned required documents) by declarant
Step 2. Compliance assessment and billing by Customs
Step 3. Payment by declarant
Step 4. Final clearance by Customs
What are the required documents for manual declaration at land border?
Required Documents for Transit
- Commercial invoice
- Packing list
- Bill of laden or airway bill
- Guarantee (150% of estimated duties & taxes)
What are the procedures for export?
Step 1. Registration of electronic declaration (Including attachment of scanned required documents) by declarant
- Automatic selectivity triggered by the system
Step 2. Compliance review and validation of declaration by Customs
- Automatic electronic payment notice to declarant
Step 3. Payment of export fee by declarant
- Automatic export clearance to terminal operator
Step 4. Loading by terminal operator
What are the required documents for export?
Required Documents for Export
- Commercial invoice
- Packing list
What are the procedures for re-export?
Step 1. Registration of electronic declaration (Including attachment of scanned required documents) by declarant
- Automatic selectivity triggered by the system
Step 2. Compliance review and validation of declaration by Customs
- Automatic electronic payment notice to declarant
Step 3. Payment of re-export fee by declarant
- Automatic re-export clearance to terminal operator
Step 4. Loading by terminal operator
What are the required documents for re-export?
Required Documents for Re-export
- Packing list
- Customs clearance documents at the time of importation
Harmonized Systems (HS) Code
What is the HS Code?
The Harmonized System is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.
Harmonized System (HS) Codes are commonly used throughout the export process for goods.
Why does Liberia use the HS Code System?
The HS is administrated by the World Customs Organization (WCO) and is updated every five years. It serves as the foundation for the import and export classification systems used in the Liberia and by many trading partners.
The HS assigns specific six-digit codes for varying classifications and commodities. Countries are allowed to add longer codes to the first six digits for further classification.
What is Duty Free?
Who does Duty Free apply to?
- Legislators / Members of the Supreme Court Bench
- GOL Ministries & Agencies
- Concessions & Investments
- Executive Orders
- Public Corporations
- Non-Governmental
- Diplomatic Missions
- Medical Institutions
- Educational
- Religious Institutions
What items does Duty Free apply to?
Legislators / Members of the Supreme Court Bench
GOL Ministries & Agencies
Concessions & Investments
Executive Orders
Public Corporations
Non-Governmental
Diplomatic Missions
Medical Institutions
Educational Institutions
Religious Institutions
Legislators / Members of the Supreme Court Bench
GOL Ministries & Agencies
Concessions & Investments
Executive Orders
Public Corporations
Non-Governmental
Diplomatic Missions
Medical Institutions
Educational Institutions
Religious Institutions
Who can use the ASYCUDA System?
The system can be accessed for clearing imported consignments at automated ports by importer(s) that request and obtain access to ASYCUDA World (the automated used by Customs), or use an approved licensed broker with access to ASYCUDA. Authorized LRA and Customs officers also have access to the system.
How can I verify that my customs broker/agent has given me the correct bill?
All bills pertaining customs declarations made by importers or their agents are stored electronically at automated Customs ports or manually at Customs ports not automated. The importer may request LRA Customs to retrieve the declaration and payment record.
Access our ASYCUDA Platform
ASYCUDA (Automated SYstems for CUstoms DAta) is a computerized Customs management system which covers most foreign trade procedures. The system handles manifests and customs declarations, accounting procedures, transit and suspense procedures. It generates trade data that can be used for statistical economic analysis. The ASYCUDA software is developed in Geneva by UNCTAD.
ASYCUDA takes into account the international codes and standards developed by ISO (International Organization for Standardization), WCO (World Customs Organization), eg. Data Model, and the United Nations. It can be configured to suit the national characteristics of individual Customs regimes, National Tariff & legislation. ASYCUDA provides Electronic Data Interchange (EDI) between traders and Customs using prevailing standards such as XML.
Customs Brokers are integral to the facilitation of trade and movement of goods and services across borders. The Business of Customs Brokers encompasses all activities, dealings, engagements and representation with LRA or any of its officers or employees in respect of customs clearance and forwarding.
Who is a customs broker?
A Customs Broker is any natural and /or legal person (partnership, association, or corporation) authorized and licensed by the Liberia Revenue Authority (LRA) to render valuable services to importers and exporters.
What does a customs broker do?
The activities or business of Customs Brokers include but are not limited to:
- Filing of documents
- Declarations on importations and exportations
- Corresponding and communicating with the LRA
- Providing written advice with respect to any individual or entity, transaction, plan, or arrangement having a potential for tax avoidance or evasion
- Representing a client or any third party at conferences, hearings, and meetings
Who can become a customs broker?
Any natural person (individual) who is a Liberian citizen and is 18 years of age and above can become a Customs Broker.
What are the requirements for an individual (natural person) to become a customs broker?
- Complete a Customs Broker licensing application form and submit online or in person, along with two passport sized pictures and a valid government issued identification card (Driver License, Social Security ID, Passport or Voters Registration card)
- Must have the requisite technical knowledge and/or skills required of a customs broker acquired by training and/or practice
- Must sit and pass a Customs Brokers Competency Examination to be administered by the Liberia Revenue Authority (LRA)
- Possess a valid Tax Identification Number (TIN)
- Possess a valid Tax Clearance Certificate and remain tax compliant
- Be free of criminal conviction and provide a valid Police Clearance
- Pay a licensing fees as provided for in Regulation promulgated by the Ministry of Finance and Development Planning under Section 2111 of the LRC relating to Fee Structure for Occupational and Professional Business Licensing
How much should I pay for the application form?
The Customs Brokers License application form is available free of charge.
Will I pay for the customs broker license?
Yes. The amount to be paid for the Customs Broker License is provided for in the Regulation promulgated by the Ministry of Finance and Development Planning under Section 2111 of the LRC relating to Fee Structure for Occupational and Professional Business Licensing.
What is the duration of a customs broker license?
The validity period for a Customs Brokers License will be Initial one year. It will be renewed thereafter and could be extended for one or more years based on the Customs Brokers risk profile. However, no license validity period will exceed three years.
How do I acquire the technical competence to become a customs broker?
- Be trained by the LRA
- Take advantage of LRA online self-study
- Any other customs brokers training
What are the requirements for a business entity (legal person) to be licensed as a customs brokerage firm?
- For Sole Proprietorship, at least one person (the proprietor/owner) must be a licensed Customs Broker (natural person); For all other business entities (partnership, association and corporation) at least two (2) officers, members, agents or employees must be a licensed Customs Broker (natural person)
- Must have a valid Business registration and/or Article of Incorporation and any other legal business formation documents
- Possess a valid Tax Identification Number (TIN)
- Possess a valid Tax Clearance Certificate and remain tax compliant
- Must secure an indemnity bond as follows
- Sole proprietorship – US$5,000.00 (Five Thousand United States Dollars)
- Partnership: US$10,000.00 (Ten Thousand United States Dollars)
- Corporation or Association: US$15,000.00 (Fifteen Thousand United States Dollars)
- Pay a licensing fees as provided for in Regulation promulgated by the Ministry of Finance and Development Planning under Section 2111 of the LRC relating to Fee Structure for Occupational and Professional Business Licensing
Where can I obtain a customs broker application form from?
A Customs Brokers License application form is available and can be downloaded from the LRA website. It can also be obtained from the ground floor of the LRA Headquarters and at the Customs Business Office – Free Port of Monrovia.
