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Note : Responsibility of the
Company's Manager for its
Taxes:
Under the new law (
Article 94 ) the manager of
a company may not be granted
a Tax Certificate necessary
for the issue of an exit
visa , unless the company
pays the taxes due until the
date in which he obtains the
certificate or after
submission of a guarantee to
the Tax Department .
III.
Jehad Tax Rates:
A:
Jehad tax rates on Salaries
and Wages:
This tax remained the same (
unchanged ) .
The following Jehad Tax is
deductable from gross
salaries less Employee
Social Insurance
Contribution and Employee's
Social Solidarity Fund
Contribution as follows :
|
Details |
Tax Rate |
|
If
salary does not
exceed 50 L.D.
per month |
1
% |
|
Over 50 to 100
per month |
2
% |
|
Over 100 L.D.
per month |
3
% |
B:
Jehad tax rates on Companies
:
This tax also remained
the same ( unchanged ) ,The
Jehad Tax on companies is 4
% of Net Income .
IV.
Stamp Duty Law No. 12 of
2004:
On the 6th of march 2004 the
General People Congress
issued also a new stamp duty
law no. 12 of 2004 which
replaced the stamp duty law
no. 65 of 1973 . it has come
into force from the date of
its issue .
• Attached to the law a
schedule of 45 items showing
the details and tax rate of
each item .
The following important
items and their rates
extracted from the law may
be of general interest:
|
No. |
Details |
Rate |
Item no. |
|
1 |
Auditors
Certificate &
Reports to be
paid by the
company |
100 L.D. |
2A |
|
2 |
Accounting Books
( Registered )
on each page |
0.250 L.D. |
4A |
|
3 |
Invoices ( sales
, purchase of
cars to be
paid by the
buyer ) |
3 % |
24A |
|
4 |
Invoices ( sales
, purchase of
material ) over
100 L.D. to be
paid by the
buyer
|
2 % |
24B |
|
5 |
Rental
Contractors to
be paid by the
tenant |
1 % |
27 |
|
6 |
Contracts for
supplies ,
services
,Contracting ,
Public works
... etc. to be
paid by the
contractor
|
2 % |
28A |
|
7 |
Sub-contractor
|
0.1 % |
28B |
|
8 |
Opening of
Letters of
credit |
0.2 % |
33A |
|
9 |
Guarantee ,
Insurance … etc.
of Value |
0.5% |
35 |
|
10 |
Receipts |
0.5% |
36 |
|
11 |
Amounts paid by
any public body
to others to be
paid by the
receivers |
0.5% |
43 |
V.
Social Security
Contributions Laws No. 13 of
1981
|
Details |
Rate |
|
Employee
contribution |
3.75 % of gross
salary |
|
Employer
contribution |
11.25 % of gross
salary |
|
Total
Contribution |
15
% of gross
salary |
The total
contribution of employees
and employer should be paid
by the employer directly to
the INAS Department .
VI.
Employee Social Solidarity
Fund Contribution :
A rate of
1% of the gross salary
should be deducted from the
gross salary of each
employee and should be paid
to the Social Solidarity
Fund Department .
We hope
that the above summary is
useful to foreign as well as
local companies and
individuals operating in
Libya.
For those
who need more details they
are advised to contact us.
Prof.Dr.Abdussalam Sultan
E-mail:sultan@sat.ly
Mobile :+218 91 213 8370
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