Law No. 7 of 2010 A.D. Concerning Income Tax
Publication Date: January 1, 1970
Law Number: 7
Identifier: 7-2010-LAW-GPC
Issuing Authority: General People's Congress
Type of Legislation: Laws
Status: Original, Amended
Sector: Finance
Law No. 7 of 2010 A.D. Concerning Income Tax, Tax Law in Libya

The General People's Congress,

In implementation of the resolutions of the Basic People's Congresses at their annual general session of 1377 A.R. (Libyan Calendar)
And having reviewed the Declaration on the Establishment of People's Power
And the Great Green Manifesto of Human Rights in the Era of the Masses
And Law No. 20 of 1991 A.D. concerning the Promotion of Freedom
And Law No. 1 of 1375 A.R. concerning the System of Work of the People's Congresses and People's Committees
And the Civil and Commercial Procedure Law
And Law No. 2 of 1986 A.D. concerning the Property Tax
And Law No. 28 of 1369 A.R. concerning the Tax on Livestock and Poultry
And Law No. 11 of 1372 A.R. concerning the Income Tax Law The following law was enacted:

Table of Contents

Chapter One: General Provisions
Tax Exemptions
Chapter Two: Taxes on Individuals and Partnerships
Section One: General Provisions
Section Two: Tax on Income from Trade, Industry, and Crafts
Section Three: Tax on the Income of Partners in Entities Applying the "Partners, Not Employees" Principle
Section Four: Tax on Income from Freelance Professions
Section Five: Tax on Income from Employment and Similar Activities
Section Six: Tax on Interest from Bank Deposits
Chapter Three: Tax on Companies
Chapter Four: Penalties
Chapter Five: Final Provisions
Chapter One: General Provisions
Article 1

All income generated within the territory of the Great Socialist People's Libyan Arab Jamahiriya from any assets, whether tangible or intangible, or from any activity or work carried out therein, is subject to tax.

Income generated abroad is subject to tax under the conditions stipulated in this law.

Article 2

The tax is assessed based on a declaration submitted by the taxpayer regarding their income. The tax must be paid based on this declaration after the deadline for its submission has passed, and according to the dates specified in Article 19 of this law.

Article 3

The tax is definitively assessed on each taxpayer based on the declaration referred to in the previous article, provided that the tax authority accepts it. In this case, the assessment is final and cannot be appealed.

Article 4

Without prejudice to the penalties stipulated in this law, if a taxpayer fails to submit the declaration referred to in Article 2 of this law, the tax authority may estimate the income as it deems appropriate and assess the tax based on this estimate, in accordance with the regulations specified in the implementing bylaws. Article 5

In all cases, the tax authority must notify the taxpayer of the tax assessment and the payment deadlines. The taxpayer has the right to appeal this assessment to the initial appeal committee within forty-five days from the date of notification.

Article 6

The initial appeal committees, which are responsible for deciding on appeals against tax assessments and penalties imposed under Chapter Four of this law, shall be established by a decision of the Minister, who will also determine their locations, jurisdictions, and the remuneration of their members.

Each committee shall be chaired by a judge of the Court of First Instance within whose jurisdiction the committee's location falls, selected by the court's general assembly. The committee shall also consist of two members from the Ministry of Planning and Finance, each holding a position no lower than grade nine, provided that they are not employees of the Tax Authority.

The composition of the committee may include a number of alternate members.

The committee must issue its decision on the appeal within two months from the date of its submission.

Article 7

The initial appeal committee has jurisdiction to decide on all disputes between the taxpayer and the tax authority.

Article 8

The appeal must be submitted in writing to the secretariat of the initial appeal committee, and a receipt must be obtained. The appeal must be accompanied by proof of payment of a fee equal to 0.5% of the disputed tax amount, with a minimum fee of ten dinars.

The committee secretary shall send a copy of the appeal to the tax authority for its opinion within thirty days of its receipt. The chairperson of the committee shall set a date for the hearing of the appeal and notify both the taxpayer and the tax authority at least one week in advance.

The taxpayer shall be refunded the appeal fee if the committee's decision is in their favor. In the case of a partial victory, the committee shall determine the portion of the fee to be refunded. The committee may request that the relevant department and the taxpayer provide any documents and information it deems necessary, and that the department's employees and the taxpayer appear before the committee. The taxpayer may authorize another person to represent them before the committee.

Article 9

The committee shall not be considered duly constituted unless all its members are present. Its meetings shall be held in private, and its decisions shall be made by a majority vote. Decisions must be reasoned and signed by the chairperson and members of the committee within thirty days of their issuance.

The committee secretary shall notify both the taxpayer and the relevant department of the committee's decisions.

Article 10

The tax shall be payable upon notification to the taxpayer of the initial committee's decision, even if an appeal is filed.

Article 11

Both the relevant department and the taxpayer have the right to appeal the initial committee's decision to the appellate committee, as referred to in the following article, within fifteen days of being notified of the decision.

Article 12

Appeals against the decisions of the initial committees shall be heard by one or more appellate committees, whose establishment, location, jurisdiction, and members' remuneration shall be determined by a decision of the Secretary.

Each appellate committee shall consist of a chairperson, who shall be the president of the primary court within whose jurisdiction the committee is located, a member of the Financial Audit Authority, with a rank of at least the tenth level, nominated by the Secretary of the General People's Committee for the Authority, and an expert in commercial or accounting matters.

The establishment decision may include a number of alternate members.

The committee must issue its decision on the appeal within a period not exceeding three months from the date of its filing.

Article 13

The appeal shall be submitted in writing to the secretariat of the appellate committee, which shall issue a receipt. The committee secretary shall then notify the other party of the appeal.