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Corporate tax

Tax rate for resident companies

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
"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.  


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Last modified in December 2006
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