1.10.2005
Libyaninvestment.com

- In execution of the decisions of the basic people's congresses, in their holding sessions for the year 2002;
* And after having reviewed the Declaration of the People Power Raising;
* And the Green Document for Human Rights in the era of masses;
* And the law No. (20) for year 1991, related to freedom enhancement;
* And the law No. (1) for year 2001, related to people's congresses and people's committees;
* And the law No. (21) for year 1954, regarding immunity and privilege;
* And the stamp tax law No. (65) for year 1973, and its amendments has formulated the following law:

Section One

Article One
The stamp tax is fixed or rated, and it is imposed on papers, documents, printings, advertising, registers and other writings. It is imposed also on actions, transactions and facts according to rules decided in this law, in such a manner and with such prices shown in the enclosed table.

Article Two

With observance of cases when otherwise is stipulated, the tax is due when the writing is established, or the action or transaction is completed, or when an event, subject of tax, occurred. If the writing or action arises or done abroad, then a tax will be due thereon when using or executing it in the Great Socialist People's Libyan Arab Jamahiriya. The tax is due in case of oral contract, when clinging thereon before judicial bodies, and its existence was proved. The tax is borne on who clings to the contract.

Article Three

In application of the rules of this law, the writing, or other, herein means which is subject to the tax, to be submitted to the judicial bodies or the competent bodies, or to be delivered to whom it is made in his favour, or to be submitted to collect or to obtain its acceptance, guarantee, transfer or dealing therewith in any manner, or taking any procedures or actions that may, or intended to, produce any legal effect.

Article Four

If the one sheet paper contains more than one writing, action or transaction, then the tax will be due on each thereof. However, if the writings, actions and transactions are linked each other in an indivisible manner, then they shall be just one writing, action or transaction, and the tax will be due thereon according to the higher value thereof. In cases, when the writing tax is imposed on the sheet paper, the such sheet is considered having two pages.

Article Five

The contract promise, in application of the rules of this law, is considered as an original contract, the tax due on the said contract shall be collected. If the contract is concluded thereafter, then no tax will be due thereon, except that of the writings.

Article Six

If the writing, action or other is subject to the tax in more than one description, then the tax is due thereon per description which is subject to the price of higher value. Provided that with respect to actions which are not stated expressly in the table enclosed with this law, the tax decided on actions similar in nature and effects shall apply.

Article Seven

If the writing is made of several signed copies or photocopies, then the same tax imposed on the original shall be due on each copy or photocopy thereof. The tax is due also on copies photocopied if used. However, the tax is not due on photocopies of trading papers or their copies, if they are submitted accompanied with the original, for which the tax is paid. It is not due also on the writing or copy photocopies which are submitted to the competent bodies if they are accompanied with the original, for which the tax is paid. It is exempted from the tax the writing photocopies kept at the Department when submitted thereto for tax payment on action or other, which is contained in the writing.

Section Two Tax Collection.

Article Eight

The tax is collected by one of the following methods:

1- By writing on the stamped papers prepared by the Department.

2- By sticking stamps on writings, putting the a special seal thereon or stamped them in the knowledge of the Department or through its approval.

3- By providing the tax in cash to the Department.

4- Any other method to be adopted in the executive regulation. The settlement of tax is considered invalid if it is performed by breaching the rules of the previous paragraph, or if the rules of this law or those decided in the executive regulation were not observed therein. All that without prejudice to other penalties.

Article Nine

The executive regulation shows the forms and categories of stamp papers and stamps, as well as the method of their use or cancellation, the terms of licensing the sale of such papers and stamps, and the commission amount licensed therefor.

Article Ten

It is observed to round which is less then five hundred Dirhams to increase it to value of five hundred Dirhams, and which more than five hundred Dirhams and less than one thousand Dirhams to it to value of one thousand Dirhams.

Article Eleven
The taxable writings, actions or other shall be submitted to the Department in cash or through a confirmed cheque, before using them and within a period not exceeding sixty days as of the tax due date.

Provided that if the tax is due on an action done abroad, related to a right in rem in connection with a real-estate located in the Great Socialist People's Libyan Arab Jamahiriya, then it shall be submitted to the Taxation Department within one year as of date of its conclusion.

Article Twelve

With observance of the rules of the previous article, the tax is due on writings, actions and other which are extended or renewed automatically, by occasion of its extension and renewal, and to be submitted to the Department within sixty days as of date of extension or renewal.

In calculation of the tax, the extension or renewal is considered having done for a period one entire year if it has no determined period, or this latter is less than one year.

Article Thirteen

The writings, actions and other, which are subject to the relative tax, shall contain all elements necessary for tax calculation, in particular, the value of transactions included therein. It they are not satisfying such elements, then an additional declaration is required.

The tax shall be paid in all cases when submitting the writing, however, the Department may, for reasons as per its discretion, defer the payment for a period not exceeding fifteen days.

Article Fourteen

The Writings, actions and other, subject to the relative tax, for which the value is indeterminable when the tax is due, then the tax will be paid on basis of an estimative value approved by the Department in a temporary manner until the check up of its actual value.

The concerned shall pay the tax difference, if any, within thirty days as of date of check up of the actual value.

Article Fifteen

The Department may evaluate the writing, action or other value, if the concerned omitted it or did not submit an additional declaration related thereto.

The Department may, also, evaluate the value if what is contained in the writing, action or other, or what is declared by the concerned, is less than the prevailing rates in the time of writing establishment or action conclusion.

Article Sixteen

In case of delay in paying the tax in the determined date, a fine amounting to (2%) two percent of the due tax value is imposed for each delay which period reaches one months or a fraction of a month exceeding fifteen days, provided that the fine shall not exceed (50%) fifty percent of the tax value. Such a fine is collected in the same time when the tax is collected.

Article Seventeen
In application of the rules of this law, the person is considered duly notified by any sheet paper if he, or who is legally representing him in its reception, signed thereon, or if it has been sent to him by a registered letter with acknowledging a receipt, or handed to his agent or one of his employees.

If the employee performing the such notification did not find anybody in the person activity location, or if whom was found abstained to receipt the sheet paper or it seems that his incapable, then this shall be proved by a certificate, giving a copy thereof to the Police Station, and addressing a letter to the notified informing him thereby.

If the notified has no known location, then the sheet paper shall be published in the notice board at the People's Committee for the Basic People's Congress in which the notified is resided, for a period of eight days. The publishing shall be recorded in a certificate to be issued by the People's Committee for the Basic People's Congress related thereto.

Article Eighteen

The concerned may complain from the decisions of the Department within forty five days as of date of notification of such decisions.

No complaint is accepted unless a fees amounting to (10%) ten percent of the disputed tax, where it shall not be less than ten Libyan Dinars.

The rules indicated in the income taxes law, regarding complaint, reconciliation and appeal shall apply in the settlement thereof.

Article Nineteen

The tax burden shall be in the manner indicated in the table enclosed with this law. Any agreement breaching that shall be considered invalid.

All parties in the writing, action or other, subject to the tax, are responsible jointly towards the payment of the tax and any other amounts due according to the rules of this law.

Article Twenty

The tax is due on the writing, action or other according to its nature, regardless its validity or feasibility. No tax is refunded for any reasons, whatsoever, making it with no effect or utility.

Section Three : Exemption from Tax

Article Twenty One

Without prejudice of the taxation exemptions stipulated in the special laws, the following writings and actions are exempted from tax:

1) Writings or actions between public bodies, as well as those to be established, concluded or used by those bodies in its dealing with others, rating to the value to be borne thereby.

In the application of the rules of this article, he public bodies means the bodies financed totally from the public treasury.

2) Writings, actions and other, which are established, concluded or used by unions and special authorities having general welfare, as well as associations approved by the State standing for professional, social, cultural, charitable or sportive purposes, in the cases where the tax is imposed on its liability, rating to the value to be borne thereby.

3) Writings, actions and other, which are established, concluded or used in their competence limits, the foreign diplomatic and consular corps in their work offices in the Great Socialist People's Libyan Arab Jamahiriya, provided that the treatment shall be the like. It may exempt the said corps from tax which burden is borne thereon in other cases if so required by the international etiquettes, provided that the treatment shall be the like.

4) Writings, actions and other, which are established, concluded or used by international authorities mentioned in the law of immunities and privileges No. (21) for year 1954.

5) Writings related to the Pilgrimage (Hajj).

6) Writings related to study in the different educational corporations.

7) Writings established, concluded or used by who receiving basic salaries.

8) Writings submitted by who seeking for jobs.

Article Twenty Two

The rules of this law shall not apply to writings, actions and facts subject to the judicial fees law.

Section Four : Penalties

Article Twenty Three

Every person is responsible to provide the tax to the Department after having collected it from the concerned, and who delayed in providing it in the right date, for any reasons, will punished by a fine not less than five hundred Libyan Dinars, or not exceeding the three times of unpaid tax, whichever is bigger. Who will proceed to pay the tax before having judged him will be exempted from the penalty.

Article Twenty Four

Everyone who abstains to enable the Department employees reviewing the records and documents mentioned in the article thirty six of this law, will be punished by a fine not exceeding fifty Libyan Dinars, as well as a threatening fine will be judged against him, which value is to be determined in the verdict, for each day of delay, provided that it shall not less than five Libyan Dinars. Such threatening fine shall come into force as from the date when the non-execution of the verdict is proved after having notified him legally. Its validity shall not end unless on the day when the Department prove that it has been enabled to review the records, papers and documents.

It may exempt the payment of the threatening fine if the concerned has executed what has been judged against him.

Article Twenty Five

Anyone who damaged records, papers or documents, which he is undertaking their keeping, will be punished according to the rule of the article thirty eight of this law, by a fine not less than one hundred Libyan Dinars and not exceeding five hundred Libyan Dinars.

Article Twenty Six

Anyone who sold or offered for sale stamp papers or stamps with a price exceeding the decided one therefor, will punished by a fine not less one hundred Libyan Dinars.

The same penalty will be applied to who practice the sale of stamp papers or stamps without license, as well as who sold or offered for sale stamps previously used with his knowledge.

Article Twenty Seven

Without prejudice to any more severe penalty stipulated in the punishments law, or in any other law, it is punished by a fine not less than five hundred Libyan Dinars, and not exceeding one thousand Libyan Dinars, anyone who made, distributed or offered for sale printings or forms, whatsoever the method of making, which are similar in their aspects, marks and stamps in a manner making them accepted instead of the valid papers, marks and forms.

Article Twenty Eight

Without prejudice to any more severe penalty, it is punished who committed any other breach of rules of this law, by a fine not less than one hundred Libyan Dinars, and not exceeding five hundred Libyan Dinars.

Article Twenty Nine

It is exempted from penalty anyone who informed the Department about the breach of rules of this law within thirty days as of date of happening.

Article Thirty

The criminal lawsuit is raised upon the request of the Secretary of the Department, and he may make a reconciliation with the breach committer in cases other than stipulated in the articles twenty five, twenty six and twenty seven of this law, if the breach committer paid the due tax and an indemnity not less than the half tax, and not exceeding the two times thereof. If such a reconciliation has been effected before raising the criminal lawsuit, then the indemnity will be decreased to the half of the minimum level.

Article Thirty One

The judgment of penalties stipulated in this law does not exempt the payment of the whole due tax.

Section Five : Final Rules

Article Thirty Two

Judges, summons clerks, bailiffs, notaries public and other employees, or persons charged of public service, may NOT issue verdicts or resolutions, to cause their signatures or legalization of signatures nor to perform any procedures or deed entering in their competency unless the tax due to what is brought before them has been dully paid, and they shall check up and refer to the Department any writing or other, which is in their possession because of work, if the tax is not paid therefore.

The judges may, in summary procedures, or those the runway is expected, order to take instantly procedures to insure the tax collection.

Article Thirty Three

It may not cling to any official procedure or action, done in breaching the rules of the previous article, unless the tax and fines due therefor are paid according to this law, and the courts shall decide that at their own discretion.

The rule of the previous paragraph shall not apply in the criminal articles.

Article Thirty Four

It is prohibited for any person to deal with, or perform, any procedure in the writings, actions or other, unless the tax due therefore is paid.

Article Thirty Five

The notaries public, and who undertakes the authentication, shall collect from the concerned the tax due on writings, actions and other, which are done before them, and to provide the Department with the same, according to the conditions and terms to be determined by the executive regulation.

Article Thirty Six

No individual, nor any public or private body, may not abstain to make the Department employees in charge reviewing their records, papers and documents, intending to check up the execution of the rules of this law.

Article Thirty Seven

Everyone who, by virtue of his job, work or competence, have connection with tax assessment and levy, or with disputes related thereto, shall observe the job confidentiality. Such an obligation shall still standing even after leaving the service.

Article Thirty Eight

The executive regulation determines the records that shall be kept by individuals and public and private bodies, to whom the rules of this law are applicable, as well as the papers and documents that shall be submitted by them.

Article Thirty Nine

The tax, and other amounts due to the State according to the rules of this law, shall have a priority on all moneys debited or undertaken to be provided. They come in the rank after expenditure debt and judicial expenses.

Article Forty

The Right of the State in claiming for due tax according to the rules of this law does NOT prescribe.

Article Forty One
The right in recovering amounts paid illegally prescribes after the expiry of three years as of date of their payment, unless the right in claiming the refund occurred after procedures taken by the Department, then the prescription starts as of date of notifying the concerned by his right in refund. The prescription is interrupted by the request sent by the concerned to the Department with a registered letter claiming for refunding which he has paid illegally.

No claim is acceptable, for any reason whatsoever, regarding the refund of stamps or stamped papers value which have been already used or written thereon.

Article Forty Two

It may not oblige the Department to pay interests for amounts collected according to the rules of this law, which it is decided to refund them to the concerned.

Article Forty Three

The Department employees, appointed by virtue of a decision issued by the Secretary, shall have the capacity of the judicial investigation officer regarding the breaches stipulated in this law.

Article Forty Four

The Secretary may, upon a proposal made by the Secretary of the Department, exempt the financer from the delay fine, totally or a part thereof, stipulated in the article sixteen of this law, according to the restrictions to be determined by the executive regulation.

Article Forty Five
The Secretary of the Department may charge others, among the Department employees, to proceed some of this competencies decided according to the rules of this law.

Article Forty Six

In application of the rules of this law, the Secretary means the Secretary of the General People's Committee for Finance, and the Secretary of the Department means the Secretary of the People's Committee for Taxation Department, and the Department means the Taxation Department.

Article Forty Seven

The writings, actions and facts existing when applying this law, which were subject to the tax, and this latter was not paid therefor, according to the rules applicable before, shall be subject to the tax according to the rules of this law. They will exempted from penalties decided there if they will be paid within sixty days as of date of coming into force of this law.

Article Forty Eight

The executive regulation of this law will be issued by virtue of a decision taken by the General People's Committee, upon a proposal made by the Secretary of the General People's Committee for Finance. Until the issue of the same, the regulations and decisions applicable in the field of the stamp tax shall still in force in a manner not contradicting its rules.

Article Forty Nine

The stamp tax law issued under No. (65) for year 1973 shall be canceled, and so do any rule contradicting the rules of this law.

Article Fifty

This law shall come into force as of date of its issue, and shall be published in the legislations record.