Tax Treatment
Under the Libyan Tax Law there is no difference regarding the tax treatment for each company form; the third chapter of the law No. 11/1372 fixed the tax rates imposed upon the Libyan and foreign companies whatever its activity or style.
The company's profits realized from its operations during the tax year will be subject to corporate tax after deducting the company's expenses.
On the other hand, the partners' profits will be also subject to income tax which creates double taxation. The legislator did not handle that double taxation regarding the company forms provided the Libyan Commercial Law except for the joint stock companies. The legislator exempt the partners' profits obtained from participation in the joint stock companies.
Libya has signed a number of double taxation prevention treaties with (Malta – Italy – France – Switzerland – Germany – Austria). However, these treaties have not been ratified yet by the legislative authority.
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