Libya Personal Income Tax

Personal income tax rates and bands

• Personal income tax scope and rate basis — Personal income tax in Libya is charged only on employment income exercised in Libya, at progressive rates of 5% and 10%. Thresholds below are on gross salary after personal exemptions. (Income Tax Law No. 7 of 2010)
• First band — 5% on gross salary up to LYD 12,000 per year (LYD 1,000 per month) percent (Income Tax Law No. 7 of 2010)
• Second band — 10% on gross salary over LYD 12,000 per year (over LYD 1,000 per month) percent (Income Tax Law No. 7 of 2010)
• Scope of personal income tax — Only income derived from employment exercised in Libya is taxable; applies to Libyan and foreign nationals alike (Income Tax Law No. 7 of 2010)
• Personal exemption — single — LYD 1,800 per year (LYD 150 per month) LYD (Income Tax Law No. 7 of 2010)
• Personal exemption — married, no children — LYD 2,400 per year (LYD 200 per month) LYD (Income Tax Law No. 7 of 2010)
• Personal exemption — married/widowed/divorced with children — LYD 2,400 per year plus LYD 300 per child (LYD 200 plus LYD 25 per child per month) LYD (Income Tax Law No. 7 of 2010)
• Deductible — social security contribution — The taxpayer's own social security contribution (or equivalent approved scheme) is deductible (Income Tax Law No. 7 of 2010)
• Deductible — direct work expenses — Direct expenses incurred by the taxpayer in the performance of work are deductible (Income Tax Law No. 7 of 2010)
• Deductible — disciplinary fines — Any amount deducted from the taxpayer as a disciplinary fine is deductible (Income Tax Law No. 7 of 2010)
• Stamp duty on salaries — 0.5% assessed on net salaries percent (Stamp Duty Law)
• Social Unity (Solidarity) Fund — 1% of monthly gross salary, withheld and collected by the Tax Department percent (Income Tax Law No. 7 of 2010)
• Collection mechanism — Personal income tax on salaries is withheld at source by the employer and remitted monthly (Income Tax Law No. 7 of 2010)
• PAYE remittance deadline — Withheld payroll tax is generally payable monthly, within ten days after month-end ((approx — confirm)) (Income Tax Law No. 7 of 2010)