Libya: Business Environment

Accounting Rules

Tax Year: 1 January to 31 December.
Accounting Standards: Most entities apply International Financial Reporting Standards (IFRS).
Accounting Regulation Bodies: The Dewan of Audit
Accounting Reports: Financial statements should include:
- Directors’ report
- Profit and loss account
- Balance Sheet
- Cash flow statement
- Control committee report
- Notes to the above.
Publication Requirements: All business entities in Libya are required by Libyan law to maintain, in Arabic, a ledger and journal. These must bear revenue stamps on each page before use and must be registered at the commercial court.
Professional Accountancy Bodies: List of accounting organizations on the Yellow Pages
Certification and Auditing: Financial statements of foreign companies are required to be audited by qualified auditors annually.
You can contact an external auditor: Deloitte, Ernst & Young, PricewaterhouseCoopers.
Accounting News: Einnews

Learn more about Service Providers in Libya on Globaltrade.net, the Directory for International Trade Service Providers.

Company Tax: Flat rate of 20%
Capital Gains Taxation: Capital gains are treated as income and taxed at the standard rate.
Main Allowable Deductions and Tax Credit: Deductions for depreciation, losses, expenses for starting performance of the activity.
Other Corporate Taxes: Jihad tax (national defense tax), registration tax, payroll tax, social security contributions, stamp duty.

Personal Income Tax (wages and salaries)	from 5 to 10%
Up to LYD 12,000	5%
Over LYD 12,000	10%

Allowable Deductions and Tax Credit: Various personal allowances and deductions are granted. For more information, consult SAT Website (Sultan for Accounting, Auditing and Tax Consulting).

Countries With Whom a Double Taxation Treaty Have Been Signed: List of countries having signed a fiscal agreement with Libya
Withholding Taxes: Dividends: 0, Interest: 5%, Royalties: are taxed as ordinary income.

National Organizations: The Industrial Research Center (IRC).
Libya is a member of the WIPO Convention (convention instituting the World Intellectual Property Organisation). It is also a signatory to the Paris Convention on industrial property, as well as the Berne Convention on the protection of literary and artistic works.
Regional Organizations: The Secretariat of the People's Public Committee - National Board for Scientific Research
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property

Type of property and law	Validity	International Agreements Signed
Patent law n° 8 of 1959 on patents and on industrial designs and models. 1959	Protection is for a period of 15 years from the date of registration. It can be renewed once for a period of 5 years. Payment is made by annual increments.	Patent Cooperation Treaty (PCT)
Trademark Paris Convention on industrial property 1967	10 years from registration. There is a 3 months' wait after the date of registration during which anybody can oppose the request for protection. This can be renewed every 10 years.
Copyright Law number 7 of 1984 based on law number 9 of 1968 on copyright protection.	Protection is valid for the lifetime of the author plus a period of 50 years.	Berne convention For the Protection of Literary and Artistic Works

Independence of Justice: The judiciary is not independent in Libya. Security forces have the power to punish someone without a trial and political trials are held in secret.
Equal Treatment of Nationals and Foreigners: Foreign nationals cannot expect an impartial trial from the country's judicial system.
The Language of Justice: Arabic is the judicial language in the country.
Recourse to an Interpreter: Having an interpreter is possible.
Sources of the Law and Legal Similarities: The main source of the law is the constitution of 1969 (amended in March 1977). The country's legal system is based on the Italian civil law system and Islamic law. Libya has not accepted compulsory ICJ jurisdiction.

Learn more about Lawyers and Legal in Libya on Globaltrade.net, the Directory for International Trade Service Providers.

National Standards Organizations: LNCSM
, Libyan National Centre for Standardization and Metrology
Integration in the International Standards Network: Libya is part of the Arab industrial development and mining organization, the African Electrotechnical Standardization Commission (AFSEC), the International Electrotechnical Commission (IEC), and the International Organization for Standardization (ISO).
Classification of Standards: The Libyan standards are the LNCSM.
Online Consultation of Standards: The standards certified by Libya can be found on the website of the Libyan National Centre for Standardization and Metrology (LNCSM).
Certification Organizations: LNCSM Libyan National Centre for Standardization and Metrology

General Information: Libyaonline, Various documents required for commercial or practical transactions
Opening Hours and Days: The banks are open from Sunday to Wednesday from 8 am to 1 pm, then from 4 pm to 6.30 pm. On Thursday, banks are open from 7 am to 2 pm.

Aïd al-Mawlid commemorates the birth of the Prophet Mohammed	Variable but lasts one day
Aïd al-Fitr corresponds to the end of the Ramadan fast period	Variable but lasts one day
The Anniversary of the Revolution is the most important civil festival in the country	1 September

Any Comments About This Content? Report It to Us.