Repeal of the "Jihad Tax Act" by the Libyan Supreme Court Decision dated February 3, 2025

Pursuant to the Libyan Supreme Court decision dated February 3, 2025, the “Jihad Tax” has been repealed.

Summary: The 4% Jihad tax levied on the 20% corporate tax imposed on foreign construction companies operating in Libya, as well as the 3% Jihad tax applied to employees’ salary and wage (personal income) taxes, has been ABOLISHED.

NOTE: The Tax Authority suspended the collection of the Jihad Tax in February 2025. Furthermore, in accordance with a Supreme Court ruling, jihad taxes collected in previous years will not be refunded to taxpayers.

Below is the link to the full text of the news article:

https://lawsociety.ly/ruling/%D8%A7%D9%84%D8%B7%D8%B9%D9%86-%D8%A7%D9%84%D8%AF%D8%B3%D8%AA%D9%88%D8%B1%D9%8A-5-64-%D9%82/