Accounting and Legal

Accounting and tax

    Tax regulations in Libya
  1. Corporate income tax in Libya is imposed at a standard flat rate of 20% for all resident and non-resident companies registered in Libya. All legal entities in Libya must register for taxes with Office of Tax Department at the Ministry of Economy and file annual tax returns within 4 months following the end of the fiscal year;
  2. Capital gains accrued in Libya are treated as normal corporate income and are subject to a capital gains tax at the normal corporate tax rate of 20%;
  3. In addition to corporate income tax, a 4% surtax (jehad tax) or defense contribution is applicable on a company’s taxable income;
  4. The only withholding tax applicable in Libya is a 5% withholding tax applicable on interests paid on bank deposits both for resident and non-resident companies;
  5. Employers in Libya are obliged to submit a monthly social security contribution of 11.25% of their employees monthly remuneration to the Libyan Social Security Fund (SSFI);
  6. Companies doing business in Libya may carry forward their business tax losses for a maximum period of 5 years; a carryback of losses is however not allowed;
  7. State of Libya has so far entered into double taxation treaties with at least 12 countries including i) Singapore ii) United Kingdom iii) Malta iv) Italy v) India vi) Morocco vii) Belarus among others;
  8. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis;
  9. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Libya, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
Libya investment authority Libya government Libya chamber of commerce Central bank of Libya Libyan airlines Libya ministry of finance