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flag Libya Libya: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting Standards
Most entities apply International Financial Reporting Standards (IFRS).
Accounting Regulation Bodies
The Dewan of Audit
Accounting Reports
Financial statements should include:
- Directors’ report
- Profit and loss account
- Balance Sheet
- Cash flow statement
- Control committee report
- Notes to the above.
Publication Requirements
All business entities in Libya are required by Libyan law to maintain, in Arabic, a ledger and journal. These must bear revenue stamps on each page before use and must be registered at the commercial court.
Professional Accountancy Bodies
List of accounting organizations on the Yellow Pages
Certification and Auditing
Financial statements of foreign companies are required to be audited by qualified auditors annually.
You can contact an external auditor: Deloitte, Ernst & Young and PricewaterhouseCoopers.
Accounting News
Einnews (en anglais)

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Tax Rates

Consumption Taxes

Nature of the Tax
There is no VAT.
Other Consumption Taxes
Libya has no excise taxes and customs duties were abolished in 2005, except for tobacco and tobacco products.

Learn more about Service Providers in Libya on, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
Flat rate of 20%
Capital Gains Taxation
Capital gains are treated as income and taxed at the standard rate.
Main Allowable Deductions and Tax Credits
Deductions for depreciation, losses, expenses for starting performance of the activity.
Other Corporate Taxes
Jihad tax (national defense tax), registration tax, payroll tax, social security contributions, stamp duty.

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Individual Taxes

Tax Rate

Personal Income Tax (wages and salaries) from 5 to 10%
Up to LYD 12,000 5%
Over LYD 12,000 10%
Overseas income 20%
Allowable Deductions and Tax Credits
Various personal allowances and deductions are granted. For more information, consult SAT Website (Sultan for Accounting, Auditing and Tax Consulting).

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of countries having signed a fiscal agreement with Libya
Withholding Taxes
Dividends: 0, Interest: 5%, Royalties: are taxed as ordinary income.

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Sources of Fiscal Information

Tax Authorities
Libyan Customs (in Arab)

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Learn more about Taxes and Accounting in Libya on, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
The Industrial Research Center (IRC).
Libya is a member of the WIPO Convention (convention instituting the World Intellectual Property Organisation). It is also a signatory to the Paris Convention on industrial property, as well as the Berne Convention on the protection of literary and artistic works.
Regional Organizations
The Secretariat of the People's Public Committee - National Board for Scientific Research
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
law n° 8 of 1959 on patents and on industrial designs and models. 1959
Protection is for a period of 15 years from the date of registration. It can be renewed once for a period of 5 years. Payment is made by annual increments. Patent Cooperation Treaty (PCT)
Paris Convention on industrial property 1967
10 years from registration. There is a 3 months' wait after the date of registration during which anybody can oppose the request for protection. This can be renewed every 10 years.
Law number 7 of 1984 based on law number 9 of 1968 on copyright protection.
Protection is valid for the lifetime of the author plus a period of 50 years. Berne convention For the Protection of Literary and Artistic Works

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Legal Framework

Independence of Justice
As the country is currently experiencing a political transition, justice should undergo major transformations.
Equal Treatment of Nationals and Foreigners
As the country is currently experiencing a political transition, justice should undergo major transformations.
The Language of Justice
Arabic is the judicial language in the country.
Recourse to an Interpreter
Having an interpreter is possible.
Sources of the Law and Legal Similarities
 The main source of the law is the constitution of 1969 (amended in March 1977). The country's legal system is based on the Italian civil law system and Islamic law. Libya has not accepted compulsory ICJ jurisdiction. 

Learn more about Lawyers and Legal in Libya on, the Directory for International Trade Service Providers.

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National Standards Organizations
LNCSM (in Arabic), Libyan National Centre for Standardization and Metrology
Integration in the International Standards Network
Libya is part of the Arab industrial development and mining organization, the African Electrotechnical Standardization Commission (AFSEC), the International Electrotechnical Commission (IEC), and the International Organization for Standardization (ISO).
Classification of Standards
The Libyan standards are the LNCSM.
Online Consultation of Standards
The standards certified by Libya can be found on the website of the Libyan National Centre for Standardization and Metrology (LNCSM).
Certification Organizations
LNCSM (in Arabic) Libyan National Centre for Standardization and Metrology

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Business Practices

General Information
Libyaonline, Various documents required for commercial or practical transactions
Opening Hours and Days
The banks are open from Sunday to Wednesday from 8 am to 1 pm, then from 4 pm to 6.30 pm. On Thursday, banks are open from 7 am to 2 pm.

Public Holidays

Jamahiriya Day 2 March
British Evacuation Day 28 March
Army Day 9 August
National Day   1 September
Italian Evacuation Day 7 October
1911 Deportation Memorial Day 26 October
Independence Day 24 December

Periods When Companies Usually Close

Aïd al-Mawlid commemorates the birth of the Prophet Mohammed Variable but lasts one day
Aïd al-Fitr corresponds to the end of the Ramadan fast period Variable but lasts one day
The Anniversary of the Revolution is the most important civil festival in the country 1 September

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Last Updates: October 2014