The Investment Law:

Investment Law No. 9 for the year 2010 governs investment in Libya.

The Law reaffirms that:

• Investment is allowed in all sectors (production and services) except for exploration and extraction of oil and gas.
• The minimum capital requirement is 5 million Libyan dinars for foreign investors and 2 million Libyan dinars for domestic investors.
• It provides for incentives in the form of reduced customs duties and taxes. Finally,
• It provides that any disputes between foreign investor and the state should be settled in national courts, unless there is a bilateral investment treaty between Libya and the home country of the foreign investors, in which case the dispute should be settled under such a treaty.
• Nationalization of the project may not be carried out, in any way, except by law or judgment and must be in return for prompt and fair compensation.

Corporate Income Rate (CIT)

For any Libyan registered entity, income arising both in Libya and abroad (i.e. worldwide) is assessable for corporate income tax (CIT) purposes in Libya.

CIT is imposed annually on the same basis for Libyan controlled corporate entities, foreign controlled corporate entities, and branches of foreign companies.

CIT is levied on taxable profits at a flat rate of 20%.

The Labor Relations Law No. 12 for the year 2010 regulates the labor market in Libya.

• Probation Period : Probation period is 30 days actual work from date of resuming work. Probation period is considered appointment if no decision is issued terminating the contract.. 
• Hours of work: Working hours should not exceed 48 hours per week and should not exceed 10 hours per day. Working hours may be reduced for some categories
• Maternity Leave: The woman has a right of maternity leave with pay for 14 weeks when submitting a medical certificate stating the expected date for maternity and this leave includes at least a period 6 weeks after birth and the leave is extended up to 16 weeks if more than one child is born. Woman’s work may not be terminated during pregnancy or absence during maternity leave except when there are justifiable reasons which are not related to pregnancy or maternity and berth complications or breast feeding The working woman has a right during the following 18 months of birth date to entertain with period or periods for suspending work during working hours for minimum one hour with pay for breast feeding her infant.
• Annual Leave: The annual leave is 30 days; and 45 days for persons whose age is 50 years or his service exceeded 20 years. In all cases, the laborer or employee should enjoy at least 15 continued leave days in a year.
• Sick leave: Laborer or employee is entitled paid sick leave or salary for a period not exceeding 45 continuous days or 60 days if not continuous during one year.
• Special Leave: Laborer or employee is entitled special leave with full salary in the following cases: a. Performance of Hajj for 20 days and it is granted one time during period of service b. Marriage for two weeks and it is granted one time during period of service c. The woman whose husband dies, the leave will be 4 months and 10 days d. Performance of examination for the period of the examination
• The retirement age is 65 for men and 60 for women.