Investment incentives on Liberia

Investment incentives on Liberia

Tax Incentives in Liberia[i]

Incentives are available to foreign and domestic investors for approved investment projects in priority areas, such as the following, defined by the government:

  • Tourism carried out through tourist resorts, hotels, and cultural sites
  • Manufacturing of finished products having at least 60 percent local raw material content
  • Energy
  • Hospitals and medical clinics
  • Low and medium income housing
  • Air, sea, rail, and road transport infrastructure
  • High impact information and communications technology
  • Banking in the non-bank areas in the south-eastern region

Summary of Opportunities for Incentives

Investments in excess of USD 10 million are eligible for incentive packages through the Investment Commission. Economically viable and strategically located investments up to USD 20 million are eligible for the following incentives:

Exemptions from trade taxes:

  • Equipment and machinery, raw materials, capital spare parts, and other goods to be used in the project are exempted from import duty up to 100 percent of their dutiable value.
  • A customs user fee of 1.5% plus ECOWAS trade levy of .5% is applicable.

Tax deductions:

  • The cost of equipment and machinery used in the year the asset is placed into service is eligible for a tax deduction of up to 30 %
  • The construction cost of a new hotel or tourist resort is eligible for a tax deduction of up to 30%
  • The cost of buildings and fixtures used to manufacture finished products with at least 20% local raw materials is eligible for a tax deduction of up to 10%.