Tax
Income tax under Law 7/2010, with collection heavily dependent on oil revenue
Law 7/2010 governs income tax with a corporate rate of 20 per cent plus a jihad tax surcharge. The state finances itself overwhelmingly from hydrocarbon revenue rather than from general taxation.
Key rules
- Jurisdiction — Tax Department of the Ministry of Finance. Administration differs between the two administrations.
- Deadline — Annual returns are nominally due within the statutory period after year end
- Deadline — Payroll withholding is monthly where administered
Governing law
- Income Tax Law 7/2010
- Law 2/1973 on stamp duty, as amended
- Petroleum Law 25/1955 and related concession terms
In practice
Libya has no VAT, which distinguishes it from every North African neighbour, and the corporate rate under Law 7/2010 is 20 per cent with an additional jihad tax levied at small percentages on income. The practical significance of general taxation is limited because hydrocarbon revenue collected through the National Oil Corporation and channelled via the Central Bank dominates public finance, and the political contest over that channel matters far more than the income tax code. Upstream petroleum operations are governed by concession and production-sharing terms rather than by the general tax law. Administration is fragmented, and obtaining a reliable tax clearance can depend on which administration issues it.