Africa · Tax guide
Libya
Libya taxes company profits at 20%, plus a small jihad tax, and has no VAT. Payments to non-residents carry 20% withholding, and taxes are administered by the Tax Authority under the Ministry of Finance.
At a glance
- Corporate income tax
- 20%
- VAT
- None
- Withholding on payments abroad
- 20%
Plus jihad tax
Stamp duty applies to contracts
Before treaty relief
Corporate income tax
Companies pay 20% on profits, plus the jihad tax. Foreign companies working in Libya, especially on contracts, are taxed on deemed profits. The annual return is due after the year-end, and tax clearance certificates are needed for many dealings with the state.
Stamp duty
Libya has no VAT, but stamp duty applies to contracts, invoices and many other documents, and can be a significant cost on government contracts.
Payments abroad
Payments to non-residents carry 20% withholding unless a treaty lowers it. Political and administrative conditions can change quickly, so confirm the current rules locally.
Key dates
- After the year-endAnnual income tax return
Figures and sources
2 figures- Corporate income tax rate20%Under professional review
- Withholding on payments to non-residents20%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Libya based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Libya (a Libyan tax adviser) before making compliance decisions.