- Brackets updated
migrated from the production database; research reasoning not recorded.
Top income tax
10.0%
Territorial system
Corporate tax
20.0%
VAT/GST
None
standard rate
Tax residency
183 days
9 tax treaties
Libya tax profile
Data year: 2026
- Tax system
- Territorial Libya has no VAT. Personal income tax applies to employment income earned in Libya (not worldwide investment or freelance income in practice per PwC). Employers withhold PIT on salaries after social insurance, the 1% Social Unity Fund levy and personal exemptions. A separate 0.5% stamp duty applies on net salaries. Libyan-registered entities pay 20% corporate income tax on taxable profits from Libyan and foreign sources. The Jihad Tax was cancelled effective 14 July 2025; payroll still includes a 1% Social Unity Fund contribution on gross salary.
- Top PIT rate
- 10.0%
- Corporate tax rate
- 20.0%
- VAT/GST
- No VAT/GST
- Capital gains tax
- 10.0% There is no standalone capital gains tax. Gains are taxed as ordinary income at PIT rates (up to 10%) for individuals and at the 20% CIT rate for companies.
- Social security (employee)
- 5.1%
- Social security (employer)
- 14.4%
- Dividend withholding
- --
- Interest withholding
- --
- Royalty withholding
- --
- Treaty count
- 9
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| LYD 0 | and above | 20.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| LYD 0 | LYD 12,000 | 5.0% |
| LYD 12,000 | and above | 10.0% |
Social security
| Bracket min | Bracket max | Rate |
|---|---|---|
| LYD 0 | and above | 5.1% |
Tax flags
Territorial Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- Under the Income Tax Law, an individual is resident if present in Libya for more than six months in the tax year (even if not continuous), or if Libya is the place of main residence or main economic interests. PwC describes taxation of Libyan and foreign nationals on Libyan employment income regardless of residence label. The six-month test is treated as 183 days for display.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
Sources
- PwC Worldwide Tax Summaries — Libya (accessed Oct 9, 2026) PIT/CIT rates and brackets, social security, VAT, capital gains, withholding, filing, corporate worldwide base
- Libyan Tax Authority (accessed Oct 9, 2026) National tax authority identity; DTT negotiation role
- Law No. 64 of 1973 (Income Tax Law) (accessed Oct 9, 2026) Resident definition (six months or centre of interests)
- U.S. Department of State — 2025 Investment Climate Statements: Libya (accessed Oct 9, 2026) List of nine double taxation treaties in force
- EY — Libya cancels Jihad Tax (July 2025) (accessed Oct 9, 2026) Jihad Tax abolished from 14 July 2025
Change history
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.