Liberia

Type of profile
Country
Overview

Recent reform steps

Some of Liberia’s major reforms include:

  • The introduction of direct bank transfer, i.e. from corporate accounts of individual tax payers to the government general revenue account;

  • The gazetting of Liberia’s Transfer Pricing Regulation;
  • The signing of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters as well as the Multilateral Competent Authority Agreement for the Automatic Exchange of Financial Information (AEoI).

In 2019, Liberia finalised a DRM strategy that aims at expanding the revenue base, increasing voluntary compliance and minimising revenue loss, among others. In 2018, a Tax Expenditure Framework Report identified major challenges in Liberia’s incentive regimes. In the same year, a new excise law was legislated, which provides greater revenue protection through the introduction of excise stamp (process underway).

Progress achieved

Liberia introduced the use of e-filing and mobile money platforms to ease payment. Technical support received thanks to networking at the ATI annual events eventually translated into a long-term technical assistant for training through the Dutch Ministry of Foreign Affairs. The Dutch International Bureau for Fiscal Documentation (IBFD) supported the Liberia Revenue Authority (LRA) in developing a training curriculum and already conducted trainings in transfer pricing, taxation of natural resources and audit. Several trained staff are now very effective auditors.

Through the engagements of the Addis Tax Initiative and many references to domestic revenue mobilisation, the LRA has completed the drafting of a strategy and is currently rolling out implementations, particularly in the areas of e-filling.

Outlook: DRM priorities in 2019

Priority Activities
  • Transfer pricing audit in telecommunication, finance and insurance sectors
  • Training of staff in understanding compliance risk, its likelihood and consequence on the tax base
  • Training of staff in understanding fiscal regimes and fiscal instruments in double taxation avoidance agreements
  • Training of staff in understanding the impact of tax incentives on the base of the revenue
  • Training of staff in tax laws, tax policies and other emerging issues and policy reforms
Expected outcomes
  • Increase knowledge and expertise in transfer pricing audit techniques, including methodology, functional analysis and adjustments using arm’s length principle
  • Development of a compliance management programme for risk mitigation
  • Further development of transfer pricing risk assessment tool kit
  • Enhancement of the tax expenditure framework
  • Understanding the impact of favourable tax regimes on the local tax base
  • Developing strategies to minimise the impact of tax incentives
  • Staff trained in tax laws and policies

Ensuring policy coherence for development

Liberia ensures policy coherence by collaborating with local and international partners in fighting tax crimes and other vices with the OECD, the UN International Tax Committee etc., as well as by establishing Memorandums of Understanding between agencies. Collaborative stakeholder meetings, joint tax enforcement exercises and a joint task force underline Liberia’s commitment to work towards policy coherence.

Resources

There are no resources available.

DRM Project Data as Recipient

all
2015
2016
2017
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
United States of America
year all
22 projects
amount 7 514 267.00 USD
disbursement 6 234 064.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 21 480.00 USD
disbursement 53 610.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 43 890.00 USD
disbursement 113 450.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 150 240.00 USD
disbursement 7 600.00 USD
Governance and Economic Management Support (GEMS) . Justice System
year 2015
1 project
amount 94 310.00 USD
disbursement 14 390.00 USD
Governance and Economic Management Support (GEMS) . Legislative Function and Processes
year 2015
1 project
amount 0.00 USD
disbursement 6 740.00 USD
Governance and Economic Management Support (GEMS) . Anti.Corruption Reforms
year 2015
1 project
amount 37 850.00 USD
disbursement 37 850.00 USD
Governance and Economic Management Support (GEMS) . Anti.Corruption Reforms
year 2015
1 project
amount 0.00 USD
disbursement 8 850.00 USD
Governance and Economic Management Support (GEMS) . Public Sector Executive Function
year 2015
1 project
amount 70 840.00 USD
disbursement 96 880.00 USD
Multi Donor Trust Fund for Public Financial Management . Public Sector Executive Function
year 2015
1 project
amount 0.00 USD
disbursement 769 600.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 79 920.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 45 790.00 USD
N/A
year 2016
1 project
amount 105 000.00 USD
disbursement 105 000.00 USD
N/A
year 2016
1 project
amount 1 400 000.00 USD
disbursement 0.00 USD
N/A
year 2016
1 project
amount 1 320 000.00 USD
disbursement 610 370.00 USD
N/A
year 2016
1 project
amount 4 175 000.00 USD
disbursement 145 850.00 USD
Technical Assistance for Revenue Administration and Policy - Liberia
year 2016
1 project
amount 0.00 USD
disbursement 1 065.00 USD
Technical Assistance for Revenue Administration and Revenue Policy - Liberia
year 2016
1 project
amount 25 940.00 USD
disbursement 35 785.00 USD
Technical Assistance for Liberia - Revenue Policy and Administration
year 2016
1 project
amount 69 717.00 USD
disbursement 73 994.00 USD
Technical Assistance for Revenue Policy and Administration - Liberia
year 2017
1 project
amount 0.00 USD
disbursement 390.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 1 917 300.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 1 400 000.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 709 630.00 USD
Italy
year all
1 project
amount 9 933.65 USD
disbursement 9 933.70 USD
Liberia Customs and Border Police Italian Training
year 2016
1 project
amount 9 933.65 USD
disbursement 9 933.70 USD
Norway
year all
3 projects
amount 198 828.19 USD
disbursement 96 787.50 USD
Liberia - Preventing the natural resource curse
year 2016
1 project
amount 0.00 USD
disbursement 12 023.50 USD
Media and petroleum revenue management
year 2016
1 project
amount 0.00 USD
disbursement 19 796.40 USD
Liberia
year 2017
1 project
amount 198 828.19 USD
disbursement 64 967.60 USD
European Commission
year all
3 projects
amount 0.00 USD
disbursement 3 547 363.88 USD
Long Term Technical Assistance to the Customs Department of the Liberia Revenue Authority (LRA)
year 2017
1 project
amount 0.00 USD
disbursement 1 796 866.19 USD
Support to the Voluntary Partnership Agreement (VPA) in Liberia
year 2017
1 project
amount 0.00 USD
disbursement 656 436.70 USD
Support to the Voluntary Partnership Agreement (VPA) in Liberia
year 2017
1 project
amount 0.00 USD
disbursement 1 094 060.99 USD
Japan
year all
1 project
amount 7 478.84 USD
disbursement 7 478.84 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7 478.84 USD
disbursement 7 478.84 USD
Totals
year all
30 projects
amount 7 730 507.68 USD
disbursement 9 895 627.92 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
United States of America
year 2015
9 projects
amount 418 610.00 USD
disbursement 1 108 970.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 21 480.00 USD
disbursement 53 610.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 43 890.00 USD
disbursement 113 450.00 USD
Technical Assistance for Liberia . Revenue Policy and Administration
year 2015
1 project
amount 150 240.00 USD
disbursement 7 600.00 USD
Governance and Economic Management Support (GEMS) . Justice System
year 2015
1 project
amount 94 310.00 USD
disbursement 14 390.00 USD
Governance and Economic Management Support (GEMS) . Legislative Function and Processes
year 2015
1 project
amount 0.00 USD
disbursement 6 740.00 USD
Governance and Economic Management Support (GEMS) . Anti.Corruption Reforms
year 2015
1 project
amount 37 850.00 USD
disbursement 37 850.00 USD
Governance and Economic Management Support (GEMS) . Anti.Corruption Reforms
year 2015
1 project
amount 0.00 USD
disbursement 8 850.00 USD
Governance and Economic Management Support (GEMS) . Public Sector Executive Function
year 2015
1 project
amount 70 840.00 USD
disbursement 96 880.00 USD
Multi Donor Trust Fund for Public Financial Management . Public Sector Executive Function
year 2015
1 project
amount 0.00 USD
disbursement 769 600.00 USD
Totals
year 2015
9 projects
amount 418 610.00 USD
disbursement 1 108 970.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
Italy
year 2016
1 project
amount 9 933.65 USD
disbursement 9 933.70 USD
Liberia Customs and Border Police Italian Training
year 2016
1 project
amount 9 933.65 USD
disbursement 9 933.70 USD
Norway
year 2016
2 projects
amount 0.00 USD
disbursement 31 819.90 USD
Liberia - Preventing the natural resource curse
year 2016
1 project
amount 0.00 USD
disbursement 12 023.50 USD
Media and petroleum revenue management
year 2016
1 project
amount 0.00 USD
disbursement 19 796.40 USD
United States of America
year 2016
9 projects
amount 7 095 657.00 USD
disbursement 1 097 774.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 79 920.00 USD
N/A
year 2016
1 project
amount 0.00 USD
disbursement 45 790.00 USD
N/A
year 2016
1 project
amount 105 000.00 USD
disbursement 105 000.00 USD
N/A
year 2016
1 project
amount 1 400 000.00 USD
disbursement 0.00 USD
N/A
year 2016
1 project
amount 1 320 000.00 USD
disbursement 610 370.00 USD
N/A
year 2016
1 project
amount 4 175 000.00 USD
disbursement 145 850.00 USD
Technical Assistance for Revenue Administration and Policy - Liberia
year 2016
1 project
amount 0.00 USD
disbursement 1 065.00 USD
Technical Assistance for Revenue Administration and Revenue Policy - Liberia
year 2016
1 project
amount 25 940.00 USD
disbursement 35 785.00 USD
Technical Assistance for Liberia - Revenue Policy and Administration
year 2016
1 project
amount 69 717.00 USD
disbursement 73 994.00 USD
Totals
year 2016
12 projects
amount 7 105 590.65 USD
disbursement 1 139 527.60 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year 2017
3 projects
amount 0.00 USD
disbursement 3 547 363.88 USD
Long Term Technical Assistance to the Customs Department of the Liberia Revenue Authority (LRA)
year 2017
1 project
amount 0.00 USD
disbursement 1 796 866.19 USD
Support to the Voluntary Partnership Agreement (VPA) in Liberia
year 2017
1 project
amount 0.00 USD
disbursement 656 436.70 USD
Support to the Voluntary Partnership Agreement (VPA) in Liberia
year 2017
1 project
amount 0.00 USD
disbursement 1 094 060.99 USD
Norway
year 2017
1 project
amount 198 828.19 USD
disbursement 64 967.60 USD
Liberia
year 2017
1 project
amount 198 828.19 USD
disbursement 64 967.60 USD
United States of America
year 2017
4 projects
amount 0.00 USD
disbursement 4 027 320.00 USD
Technical Assistance for Revenue Policy and Administration - Liberia
year 2017
1 project
amount 0.00 USD
disbursement 390.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 1 917 300.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 1 400 000.00 USD
Revenue Generation for Governance and Growth (RG3) project
year 2017
1 project
amount 0.00 USD
disbursement 709 630.00 USD
Japan
year 2017
1 project
amount 7 478.84 USD
disbursement 7 478.84 USD
TC AGGREGATED ACTIVITIES
year 2017
1 project
amount 7 478.84 USD
disbursement 7 478.84 USD
Totals
year 2017
9 projects
amount 206 307.03 USD
disbursement 7 647 130.32 USD