From the 1st January 2004, corporate tax rates have varied from 15% to 40% according to the following brackets: - up to 200 000 LYD: 15% - up to 500 000 LYD: 20% - up to 1 000 000 LYD: 25% - up to 1 500 000 LYD: 30% - up to 2 000 000 LYD: 35% - Beyond 2 000 000 LYD: 40%
Tax rate on long-term capital gains
Concerning foreign companies, Libya has put in place an opaque system of taxation. Indeed, the rate of taxation is not fixed, but negotiated. The taxable profits are rebuilt by the authorities.
System governing groups of companies and dividends paid by subsidiaries to their parent companies
not communicated
Tax rate on branches
not communicated
Income tax
Fiscal year
1st January to 31st December.
Income tax rate
General income tax has been abolished. However, the income tax of physical persons remains. It varies henceforth from 8% to 15% according to 3 brackets: - up to 4 800 LYD of taxable income: 8% - from 4 801 LYD to 9 600 LYD of taxable income: 10% - beyond 9 601 LYD of taxable income: 15%
Tax deductions or other allowances
no
VAT rates
Standard rates
There is no VAT.
Other important taxes
Name of tax
Rate
"Jihad” tax (tax for national defence) on companies: it applies to the annual taxable profits of companies.
4% of taxable profits.
Jihad tax on individuals
It varies from 1% to 3% according to income.
Registration tax in the context of a contract
The tax reaches 2% for the main contract and 1% for a sub-contract.
