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LRA New Tax Administration System (ELITAS)

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The Liberia Revenue Authority under the leadership of the Commissioner General (Thomas Doe Nah) has completed the development of a local tax administration system termed ELITAS. This system is going to replace the global tax administration system called SIGTAS (System Integrated Tax Administration System). The Newly developed sytem will be used for all revenue collection at the Liberia Revenue Authority excluding (Custom Duties) which will be collected through ASYCUDA. The System has already been implemented in the Medium Tax Section (applicable to all Medium Tax payers) and has been working pretty fine. The LRA in partnership with the Liberia Institute of Tax Practioner (LITP) has begun certificating institute member through their licencing scheme to enable only license tax practitioner to file in the new system. Our Chairman/CEO, Mr. G. Darlington Dahn, I is a licensed tax practitioner with over 14 years of experience in Tax Adminsitration (LRA) and Tax Advisor (Private Auditing F
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LIBERIA TAX AMENDMENTS ACT OF 2016

The fifth session of the Fifty Third Legislature of the Republic of Liberia has enrolled Bill No 61 Entitled "An Act to Amend the Liberia Revenue Code of 2011 and to Repeal the Economic Stimulus Tax Amendment Act of 2016 to Provide For the Economic Empowerment Tax Amendment Act of 2016" This Amendment to the Revenue Code of Liberia was submitted to and signed by the President of the Republic of Liberia, Her Excellency Ellen Johnson Sirleaf, on December 20th 2016 at the hour of 5:30 PM. The Amendment to the Revenue Code was published into law on December 22, 2016 and became effective on the same date. Short name of the Act is " LIBERIA TAX AMENDMENTS ACT OF 2016" Issues covered by the amendment of the Revenue code are as follows: Tax Type Old Rate New Rate       Goods and Service Tax (Section 1000,1021 & 1022). 7% 10%       Excise Tax on Tobacco (Section 1121) 35% 80%  
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LIBERIA REVENUE CODE OF 2000 AS AMENDED

The Tax Administration of Liberia reviewed the Revenue Code of Liberia Act of 2000 and came up with amendments to have been enacted in 2010. These amendments were compiled and called the Consolidated Tax Amendments of 2010. These amendments were sent to the House of Representative and Senate for enactment into law in 2011. By November 2011, The House was able to fully enact and published the "Revenue Code of Liberia Act of 2000 as amended" Several areas of the tax laws were affected, Some of the key areas affected are as follows: 1. Advance Payment of income tax - which was 2% of Gross Turnover was repeal. The amended code read that : If you filed tax return in previous year, your advance payments plus any withholding should be not less than 100% of the tax liability in previous period. If you were not required to file in the previous year, your advance payment plus any advance tax should be equal to atleast 90% of your income tax liability for the period. 2. Income t
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CONSOLIDATED TAX AMENDMENT ACT

As Liberia strives to encourage taxpayers to declare the actual amount of taxes and pay these taxes on a regular basis, they have adopted and Economic Stimulus Taxation Act called "Consolidated Tax Amendment Act (CTA)". This act has considerably reduce some of the Taxes rate, reduce and increase certain taxes or penalties rates and disregard certain penalties. Currently the following rules apply: Personal Income Tax ......Graduated rate (0% to 25%) instead of 2% to 35% Presumptive Tax .............25% of profit instead of 2% of gross income Withholding on Payments to Resident and Nonresident rates are as follows: Tax kind Nonresident Resident SOURCE INTEREST 15% 10% Consolidated Tax Amendments – Section 806 & 905 DIVIDEND 15% 10% Consolidated Tax Amendments – Section 806 ROYALTIES 15% 10% Consolidated Tax Amendments – Section
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Impairment of Tangible Assets IAS 36

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Until the announcement IAS 36, there had been a wide range of practices dealing with impairment recognition and measurement. Many jurisdictions—European at most—had statutory obligations to compare the carrying value of assets with their market value, but these requirements were not necessarily applied rigorously. Some other jurisdictions had no requirement to reflect impairment unless it was permanent and long-term. The much more rigorous approach of IAS 36 reflects awareness by regulators that this has been a neglected area in financial reporting . Principal Requirements Of IAS 36 In general, the standard requires that the entity tests for impairment when there is an indication that an asset might be impaired (but annually for intangible assets having an indefinite useful life). When carried out, the test is applied to the smallest group of assets for which the entity has identifiable cash flows, called a “cash generating unit.” The carrying amount of the asset or asse
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The amended Revenue code of Liberia 2010

Liberia has amended her revenue code act of 2000, this was done in 2010 with effective date 1 January 2011. The amended code adjusted the personal income tax from to reflect low tax burden on individuals. The code also reduced the highest tax bracket from 35% to 25%. The code further addresses issue of Investment incentives encouraging people to invest excess cash into the hinterland with percentage ranging from 30% of the investment. The penalties for late filing and late payment was also adjusted by the code to 0.5% instead of 1%. The period for retention of tax documents have been increased to 7 years from 5. The amendment addressed issues not also covered by the initial code such as tax payment for mining and exploration companies. It also discuss some accounting policies that should be applied, like depreciation, etc. To obtain a copy of the amended code you may contact me on my email address. dahndarlington@gmail.com
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Our Taxes at Work

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