Taxes - Accounting
Libya
Tax Rates
Consumption taxes
- Nature of the tax
- There is no VAT.
- Other consumption taxes
- Excise duties exist on certain products.
Corporate taxes
Tax rate
| Corporate 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 credit
- 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.
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% |
- Allowable deductions and tax credit
- Various personal allowances and deductions are granted. For more information, consult SAT Website (Sultan for Accounting, Auditing and Tax Consulting).
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.
- Bilateral agreement
- Libya and Tunisia are bound by a double taxation treaty: yes
| Signed | Ratified | Enforced |
| 15/05/1978 | Law 78-52 of 26/10/78 | 01/01/1980 |
| 23/07/1990 | Law 90-85 of 29/10/90 | 22/06/1992 |
Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes localesconnaître les taxes locales qui s'appliquent à votre produit.
Sources of fiscal information
- Tax Authorities
- Libyan Customs
- Other domestic resources
-
Taxes on the website of the Libyan Central Bank
Accounting Rules
- Tax year
- 1 January to 31 December.
- 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, PricewaterhouseCoopers. - Accounting news
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Einnews
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Last updates: May 2012
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Copyright © 2007, all rights reserved
Copyright © 2007, all rights reserved