Income tax in Libya

January 07, 2019

INDIVIDUAL TAXATION

Residents are taxed on their Libyan-sourced income. Married couples are taxed separately.

INCOME TAX

Different income tax rates apply depending on the source of income.

Income from commercial activities is taxed at a flat rate of 20%.

Employment income is taxed at progressive rates.

INCOME TAX

TAX BASE, LYD(US$) TAX RATE
Up to 12,000 (US$8,571) 5%
Over 12,000 (US$8,571) 10% on income over US$8,751
Source: Global Property Guide

Professional income is taxed between 15% and 30%. Residents are taxed at a flat rate of 20% on their overseas income or income from foreign sources.

Residents are entitled to tax exemptions:

  • LYD1,800 (US$1,285) for single taxpayers
  • LYD2,400 (US$1,714) for married men
  • LYD300 (US$214) for each dependent child

Jihad Tax

Tax jihad is levied on the taxable income of individuals at 4%.

RENTAL INCOME
Residents are taxed at a flat rate of 20% on their rental income.

CAPITAL GAINS
Capital gains are treated as ordinary income and are taxed at a flat rate of 20%.


PROPERTY TAXATION

There are no property taxes in Libya.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed in Libya. Income-generating expenses are deductible when calculating taxable income. Corporate income tax is levied at a flat rate of 20%.

Jihad Tax

Tax jihad is levied on the taxable income of companies at 4%.

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