Liberia, known for its robust maritime registry and business-friendly environment, has increasingly aligned its tax regulations with international standards. Although Liberia is not a member of the Organisation for Economic Co-operation and Development (OECD), it is aware of the global push towards greater tax transparency and the fight against Base Erosion and Profit Shifting (BEPS). This guide provides Chief Financial Officers (CFOs) and financial executives in Liberia with a detailed overview of the Country-by-Country Reporting (CbCR) requirements. It explains the applicability of these regulations, the reporting process, deadlines, penalties for non-compliance, and resources available for ensuring compliance.

Applicability of CbCR in Liberia

Criteria for Reporting:

• As of the latest available information, Liberia has not formally implemented CbCR requirements under the OECD’s BEPS Action 13 framework.
• However, multinational enterprise (MNE) groups operating in Liberia that are subject to CbCR in other jurisdictions should consider the implications for their operations in Liberia, especially concerning data-sharing and compliance with international tax obligations.
• MNEs with significant operations or revenue in Liberia should stay informed about any future developments, as the government may adopt similar regulations to enhance tax transparency.

Relevant Legislation:

• Currently, Liberia does not have specific legislation mandating CbCR for MNEs. Businesses are advised to monitor updates from the Liberian Revenue Authority (LRA) and other government bodies for any changes in the tax landscape.

Reporting Requirements

Information to be Reported:

• In the absence of specific CbCR requirements, there is no mandated reporting format or data submission process for CbCR in Liberia.
• MNEs should, however, ensure that their global reporting practices align with international standards, particularly if they are subject to CbCR in other jurisdictions.

Form and Submission:

• There is no current requirement for the electronic or physical submission of CbC reports to the Liberian Revenue Authority (LRA).
• MNEs should maintain internal records that comply with the OECD’s CbCR template in case Liberia adopts similar regulations in the future.

Filing Deadlines

• Since there are no CbCR obligations in Liberia at this time, there are no specific filing deadlines for MNEs operating within the country.
• However, MNEs should ensure they meet the CbCR filing deadlines in other jurisdictions where they operate and are required to submit CbC reports.

Penalties for Non-Compliance

Penalties:

• As Liberia has not implemented CbCR regulations, there are no penalties associated with non-compliance specific to CbCR.
• MNEs should nonetheless comply with all other applicable tax obligations in Liberia and ensure that their global CbCR obligations are met in other jurisdictions to avoid penalties there.

Defences:

• While Liberia does not impose penalties for CbCR non-compliance, businesses should be prepared to demonstrate compliance with any international CbCR obligations if questioned by the Liberian authorities or tax authorities in other jurisdictions.

Confidentiality and Use of Information

Data Protection:

• Liberia has not established specific data protection guidelines related to CbCR. However, MNEs should ensure that any data shared under international CbCR obligations is protected according to global data protection standards.
• MNEs should also monitor any developments in Liberian data protection laws that could impact how financial data is handled and shared.

Additional Resources

• For more information on general tax obligations in Liberia, businesses can visit the Liberian Revenue Authority (LRA) website.
• To understand CbCR obligations globally and to prepare for any future developments in Liberia, refer to the OECD’s CbCR page.

Conclusion

While Liberia has not yet implemented Country-by-Country Reporting requirements, multinational enterprises operating in the country should remain vigilant about global CbCR obligations and be prepared for potential future changes in Liberian tax regulations. Maintaining compliance with international standards and monitoring updates from the Liberian Revenue Authority will help ensure that MNEs are well-positioned to meet any new reporting requirements that may arise.