For the sake of correcting the defectives of the old tax law, to reach tax justice, and to encourage local as well as foreign investors to do business in Libya, a new income tax law has been issued on 28th of January, 2010 listed under number (7) of the year 2010. The new laws has come into force as from 28/04/2010, the date of its publishing in Moudawant Al-Tashri’at ( The Official Gazette ) no. 4 of 2010.
This new tax law has a number of advantages which include the following:
First: Introducing many incentives to encourage investment and production and to achieve positive results in the field of tax outcome by:
A) Decreasing the tax rates of the different specific taxes imposed on the income of individuals as follows: on gross salary brackets of LYD12000 or LYD1000 per month the tax rate is 5 percent; on gross salary brackets of over LYD12000 or over LYD1000 per month, the tax rate is 10 percent.
B) Decreasing the tax rates applied on the profits of local as well as foreign companies to a flat rate of 20% of the net profit…read more