The Liberia National Investment Commission together with the Ministry of Finance provides incentives for businesses to reduce costs for setting up or expanding businesses to attract investment in specific sectors, including the energy sector. Businesses from other eligible sectors could also get tax deductions for solar electrification or other renewable energy assets.
Businesses who can apply for a certificate to get the incentives need to be registered in Liberia and plan a minimum capital investment of 500 000USD to be invested over 5 years (general), or 50 000USD to establish a hospital or health facility. This includes fixed assets, working capital, pre-operational costs.
Also, to be eligible, businesses have to operate in one of the eligible sectors which are tourism, manufacturing and value addition, energy, medical, housing, transportation, information technology, banking, horticulture, poultry, waste management, manufacturing or assembling of products for export, agriculture food crop cultivation and processing, exportation of sea products, rubber and oil palm cultivation and processing.
The incentives include deductions of import duty up to 100% for Equipment and machinery, Specialized vehicles, Capital spare parts, specialized capital goods (raw material), Medical and educational equipment and supplies, also exempting Goods and services tax. Moreover, there is capital allowance: Aggregate deduction of up to 30% of the purchase price of a qualifying asset for the tax period in which the asset is placed in service. On the purchase price of equipment and machinery 20% deductions are possible for manufacturing and services outside of Montserrado county, outside any government owned industrial free zone and outside industrial zones, as well as for tourist facilities or transnational corporation with headquarters in Liberia. Deductions are not allowed for automobile, small trucks, and fuel.
Interested eligible businesses can submit an application letter with business registration, article of incorporation, tax clearance and business plan or project proposal to the National Investment Commission. Up to now, 64 businesses have benefitted from this 5-years program, including 17 Liberian owned businesses.
For more information: Liberia National Investment Commission http://investliberia.gov.lr/new/