Corporate - Other taxes

Last reviewed - 03 December 2023

Value-added tax (VAT)

There is no VAT in Libya.

Customs duties

Customs duties were abolished in 2005, except for tobacco and tobacco products.

A service fee of 5% on the value on most imports also exists. There are various exemptions to this service fee, specifically under Investment Law and within the oil sector.

Other dues and taxes on importation are estimated at 0.5%. Initially, a temporary import licence is issued for six months that can be extended to a maximum of three years. A guarantee or a deposit can be provided by the importer to the Customs Department.

Excise taxes

Libya has no excise taxes.

Property taxes

Libya has no specific property taxes.

Transfer taxes

Libya has no transfer taxes.

Stamp duty

Stamp Duty Law levies a schedule of duties and rates on various documents and transactions. The most relevant to corporate entities is Schedule 28, which prescribes the rate of duties on contracts for the provision of services or supply. The duty on main contracts is 1% and on subcontracts is 0.1%. Note that there is a duty of 0.5% on all payments to the Tax Department as well.

Payroll taxes

An employer is responsible for collecting taxes and contributions for the state. When an entity is audited by the tax authorities, the assessment is effectively on the employer for failing in its statutory obligation to collect those taxes and contributions. Note that individuals are not required to file annual statements of income.

Social security contributions (INAS)

Social security contributions are payable by all persons working in Libya, including expatriates.

Social security contributions are computed on gross income, and current rates are as follows:

Gross income Foreign branch (%) Libyan entity (%)
Employee’s contribution 3.75 3.75
Employer’s contribution 11.25 10.50
Contribution from public treasury - 0.75
Total 15.00 15.00

Social security is withheld by the employer and payable monthly, within ten days after the month end. For social security purposes, a late payment fine of 5% per annum is assessed on the amount due.