🇱🇾 Libya Tax Guide - Income Tax, Corporate Tax & Special Regimes

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: Rate not recorded
Interest withholding: Rate not recorded
Royalty withholding: Rate not recorded
Treaty count: 9

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
LYD 0	and above	20.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
LYD 0	LYD 12,000	5.0%	$0 – $1,867
LYD 12,000	and above	10.0%	$1,867 +

Social security

Social security brackets
Bracket min	Bracket max	Rate	USD equivalent
LYD 0	and above	5.1%	$0 +

Territorial Exemption

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

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

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%