Tax Structure in Libya

Tax Structure in Libya

• The Libyan tax structure is a compilation of tax laws and regulations.
• This structure varies based on economic factors, natural resources, and the economic system.
• Social and political goals influence the tax structure in modern countries.
• Amendments to tax laws occur via enactment of new laws, abolishing, modifying, or exempting specific taxes.
• Taxes are a tool to achieve societal goals.
• Tax legislation originates from the highest legislative authority in the state.
• Modern nations' constitutions specify that tax imposition, modification, abolition, or exemptions must adhere to laws.
• Libya uses a two-part tax structure including direct and indirect taxes.

Direct Taxes

• Direct taxes are categorized into a single section addressing income taxes.
• Sub-categories involve income of natural persons.
• A specific tax on the net income exists (original), applied to various income types like business, industry, and trades.