°µÍø½ûÇø

Wow, that's a subject you're opening here !!

I know about income tax for companies, but this is surely not applicable to individuals.

All is know is a VAT of 2.05%, applicable only if you ask for a receipt. So sometimes, goods are cheaper if you don't !

Do you think that your local income as an °µÍø½ûÇø shall be subject to taxes ?

Individual income tax.  Does Libya charge income tax of Libyans? of °µÍø½ûÇøs?

Well on any local contract registered in Libya, there is around 25% cutoff. This includes social security, pension benefits...and income tax.

I'll check that with our accountant tomorrow to have more details.

Income tax for Libyan nationals starts at 18% and progressively increases up to a maximum of 25%. Sorry, don't know the particular tax bands. There are no national insurance contributions.

Tax for °µÍø½ûÇø employees is handled by the company's tax/HR department and works on a Hypothetical basis - the company pays an arranged tax contribution to the Libyan tax authorities and the company charges the employee a nominal rate of tax.

The only exception are home country nationals who work at their diplomatic missions in Libya, eg. British consular staff working at the British embassy will be subject to UK, not Libyan tax. This is probably why they are a bunch of miserable ba$tards

I am also interested in this subject. I am working in Libya and also being taxed. Is there any one who know how you can claim social security tax after termination of your employement and you want to go back home. I undestand social security tax totals 15%, 3.5 from your contribution and 11.5 from employer.

lincoln wrote:

Is there any one who know how you can claim social security tax after termination of your employement and you want to go back home.

Are you asking if you can reclaim tax paid during your time spent in Libyan employment?

If you are on a local contract, then NO

If you are on an °µÍø½ûÇø contract where the Company operates a tax equalization policy, it may be possible. Check with your HR department.

I am an °µÍø½ûÇøriate but my contract always quote Libyan Law and does not mention any thing on tax equalization policy which i am not aware of. May be I ask how can you then benefit from the Social security tax if any benefit for foreigners?

lincoln wrote:

May be I ask how can you then benefit from the Social security tax if any benefit for foreigners?

You don't benefit, that's why it's called a tax....

Thanks Sandman6 for enlightining me on these issues