OpenAccountants/Libya/Libya Tax Overview

Libya Tax Overview

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: tax overview for Libya (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Libya, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Overview of Libyan tax system

Libya operates a source-based tax system administered by the Tax Department under the Ministry of Finance. Personal income tax applies only to employment income arising in Libya, while corporate income tax is levied on worldwide profits of resident entities. There is no VAT.

Standard tax year

Calendar year (1 January to 31 December); a company may use its own year-end with prior Tax Department approvalIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration)

Currency

Libyan dinar (LYD)Income Tax Law No. 7 of 2010

Tax authority

Tax Department (Libyan Tax Authority), Ministry of FinanceIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya)

Personal income tax basis

Source-based — Libyan and foreign nationals are taxed only on income derived from employment exercised in LibyaIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income)

Corporate income tax basis

Worldwide income (income arising both in Libya and abroad) is assessable for resident companiesIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income)

Headline personal income tax rate

5% to 10% (progressive on employment income)Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income)

Headline corporate income tax rate

20% flatIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income)

Does Libya have VAT/GST?

No — there is no VAT or general sales tax in Libya. A 5% service fee applies to most importsIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/other-taxes)

Stamp duty

Main service/supply contracts 1%; subcontracts 0.1%; payments to the Tax Department / net salaries 0.5%Stamp Duty Law (https://taxsummaries.pwc.com/libya/corporate/other-taxes)

Jihad tax

Abolished (was 4% on CIT and 3% on PIT prior to 2011)Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/significant-developments)

Corporate return filing deadline

Within four months of year-end, or within one month of the audit report, whichever is earlierIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration)

Social Unity (Solidarity) Fund contribution

1% of monthly gross salary, collected by the Tax DepartmentIncome Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income)

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

The Libyan tax system at a glance

Overview of Libyan tax system — Libya operates a source-based tax system administered by the Tax Department under the Ministry of Finance. Personal income tax applies only to employment income arising in Libya, while corporate income tax is levied on worldwide profits of resident entities. There is no VAT.
Standard tax year — Calendar year (1 January to 31 December); a company may use its own year-end with prior Tax Department approval (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration))
Currency — Libyan dinar (LYD) (Income Tax Law No. 7 of 2010)
Tax authority — Tax Department (Libyan Tax Authority), Ministry of Finance (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya))
Personal income tax basis — Source-based — Libyan and foreign nationals are taxed only on income derived from employment exercised in Libya (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))
Corporate income tax basis — Worldwide income (income arising both in Libya and abroad) is assessable for resident companies (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income))
Headline personal income tax rate — 5% to 10% (progressive on employment income) percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))
Headline corporate income tax rate — 20% flat percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income))
Does Libya have VAT/GST? — No — there is no VAT or general sales tax in Libya. A 5% service fee applies to most imports (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/other-taxes))
Stamp duty — Main service/supply contracts 1%; subcontracts 0.1%; payments to the Tax Department / net salaries 0.5% percent (Stamp Duty Law (https://taxsummaries.pwc.com/libya/corporate/other-taxes))
Jihad tax — Abolished (was 4% on CIT and 3% on PIT prior to 2011) (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/significant-developments))
Corporate return filing deadline — Within four months of year-end, or within one month of the audit report, whichever is earlier (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration))
Social Unity (Solidarity) Fund contribution — 1% of monthly gross salary, collected by the Tax Department percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))

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The Libyan tax system at a glance

Overview of Libyan tax system — Libya operates a source-based tax system administered by the Tax Department under the Ministry of Finance. Personal income tax applies only to employment income arising in Libya, while corporate income tax is levied on worldwide profits of resident entities. There is no VAT.

Standard tax year — Calendar year (1 January to 31 December); a company may use its own year-end with prior Tax Department approval (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration))

Currency — Libyan dinar (LYD) (Income Tax Law No. 7 of 2010)

Tax authority — Tax Department (Libyan Tax Authority), Ministry of Finance (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya))

Personal income tax basis — Source-based — Libyan and foreign nationals are taxed only on income derived from employment exercised in Libya (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))

Corporate income tax basis — Worldwide income (income arising both in Libya and abroad) is assessable for resident companies (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income))

Headline personal income tax rate — 5% to 10% (progressive on employment income) percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))

Headline corporate income tax rate — 20% flat percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/taxes-on-corporate-income))

Does Libya have VAT/GST? — No — there is no VAT or general sales tax in Libya. A 5% service fee applies to most imports (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/other-taxes))

Stamp duty — Main service/supply contracts 1%; subcontracts 0.1%; payments to the Tax Department / net salaries 0.5% percent (Stamp Duty Law (https://taxsummaries.pwc.com/libya/corporate/other-taxes))

Jihad tax — Abolished (was 4% on CIT and 3% on PIT prior to 2011) (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/significant-developments))

Corporate return filing deadline — Within four months of year-end, or within one month of the audit report, whichever is earlier (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/corporate/tax-administration))

Social Unity (Solidarity) Fund contribution — 1% of monthly gross salary, collected by the Tax Department percent (Income Tax Law No. 7 of 2010 (https://taxsummaries.pwc.com/libya/individual/taxes-on-personal-income))