Calculation of the tax attestation and registration fee for a public works contract in Libya

In Libya, the tax attestation and registration fee for a public works or contracting contract is governed by the Stamp Duty Law (Law No. 12 of 2004). The standard stamp duty rate for main public works, services, and supply contracts is 1% of the total contract value, payable by the contractor. Additionally, a processing duty of 0.5% (called "clearance tax or clearance fee") applies to related payments and transactions processed through the Tax Department.

Key Details on Libyan Contract Stamp Duty

• Main Public Works Contracts: 1% of the total value.
• Sub-contracts: 0.1% of the sub-contract value.
• Tax Department Processing Fee: 0.5% on administrative payments (clearance fee).
• Payment Timeline: Must typically be settled to legalize and register the contract with the tax authority within 60 days of execution to avoid late penalties.
• Foreign Currency Conversion: Contracts valued in foreign currency are converted to Libyan Dinars (LYD) for the calculation.

📊 Libyan Contract Tax Calculation Example

Here is an example calculation of the tax attestation fees for a newly signed public works contract valued at LYD 1,000,000 (one million Libyan dinars):

• Stamp Tax Due (1%):
  LYD 1,000,000 × 1% = LYD 10,000
  (ten thousand Libyan dinars)
• Clearance Fee (0.5% of the Stamp Tax):
  LYD 10,000 × 0.5% = LYD 50
  (fifty Libyan dinars)
• Total Attestation Fees Payable:
  LYD 10,000 + LYD 50 = LYD 10,050
  (ten thousand and fifty Libyan dinars)

∞∞∞