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

Pursuant to the decision of the Libyan Supreme Court dated February 3, 2025, the “Jihad Tax” has been repealed.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

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Libya Yüksek Mahkemesi'nin 03.02.2025 tarihli kararı gereğince "Cihad vergisi" iptal edilmiştir.

Özet: Libya'da faaliyet gösteren yabancı inşaat firmalarına uygulanan yüzde 20'lik kurum vergisi üzerinden yüzde 4 cihad vergisi + çalışanlarının aylık maaş/ücret vergisine uygulanan yüzde 3 cihad vergisi İPTAL EDİLMİŞTİR. 

NOT: Şubat 2025'ten beri Vergi Dairesi cihad vergisi tahsilatını durdurmuş olup Yüksek Mahkeme kararı uyarınca geçmiş yıllarda tahsil edilen cihad vergisinin mükelleflere iadesi yapılmayacak.