Income tax in Libya
Residents are taxed on their Libyan-sourced income. Married couples are taxed separately.
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.
|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
Tax jihad is levied on the taxable income of individuals at 4%.
Residents are taxed at a flat rate of 20% on their rental income.
Capital gains are treated as ordinary income and are taxed at a flat rate of 20%.
There are no property taxes in Libya.
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%.
Tax jihad is levied on the taxable income of companies at 4%.