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13.09.2006
Law No. (12) of 1372 P.D. (2004) Regarding stamp Tax / Duty
Available in Arabic & English
Article (1) The stamp tax/duty is fixed or relative, and shall be imposed on the papers, documents, publications, advertisement, register and other writs, as well as acts, transactions, and facts under the provisions of this law, in the manner and the rates/ prices indicated in the annexed table.
Article (2) In observance of the cases specified for otherwise, the tax shall be due on making the write of concluding the act or transactions or occurrence of the taxable facts/situation. If the write or act arises or concluded abroad, the tax shall be due thereon when used or implemented in the great socialist people’s Libyan Arab Jamahiriya. The tax shall be due in case of verbal contract on adherence thereto before the litigation/judicial bodies and proving its existence and the person adhering to the contract shall bear the tax.
Article (3) In applying the provision of this Law, the use of the write or other taxable documents means submission thereof to the litigation bodies or competent authorities or delivery thereof to the person in whose favour it was made or submitting to collection or acceptance, guarantee, authorization or dealing therewith in any way or performing any procedure or act as would mean or intended for any legal effect thereof.
Article (4) If one paper includes more than one writ, act or transaction, the tax shall be due on each of them, If however, the writs, act or transaction are connected with each other in an indivisible manner, they shall be considered as one writs, act or transaction, and the tax shall be due on thereon as the highest value rate.
In the cases where the writ tax is imposed on the paper, the paper shall be considered as two pages.
Article (5) The purpose for contract shall, in applying the provisions of this Law, be considered as the original contract, and tax due on the said contract is concluded after wards, the tax on writs shall be only due thereon.
Article (6) If the writs, acts otherwise is taxable for more than quality, description, the tax shall be due thereon in the description taxable at highest rate.
However, with respect to acts not explicitly mentioned in the annexed table to this Law, the tax specified for similar acts thereto in nature and effects shall applicable to them.
Article (7) If the writ is made in several copies or photocopies signed, the tax on writs due on the original shall be due on each copy or photocopy, as well as on the photographed copies, is used. Nevertheless, the tax shall not be due on the photocopies of the commercial papers or copies thereof, if submitted accompanying the original on which tax is paid, nor on the photocopies of the writ or the copy submitted to the competent bodies, if accompanying the original on the tax is paid, The photocopy of the writ kep with the Tax department shall be exempted from the tax on submission thereof for payment of the tax on the act or otherwise contained in the writ.
Chapter Two Payment of Tax
Article (8) The tax shall be paid in any of the following ways: 1- By writing on the stamped papers prepared by the department. 2- By fixing stamps on the writs or putting a special stamp/seal thereon or stamping them by the department or by its consent. 3- By delivery of the Tax in cash to the department. 4- In any other way indicated in the executive regulation.
Tax payment shall be void, if done in contravention to the provisions of the Law or the provisions specified in the executive regulation are not observed, all without prejudice to other penalties.
Article (9) The execution regulation shall indicate the forms and categories of duty stamps and papers, and method of use cancellation thereof, and the rules for selling these papers and stamps and the commission for the licensees for sale thereof.
Article (10) In specifying the value of the relative tax, any amount less than five hunders dirhams shall be increased to five hundred dirhams, and any amount in excess thereof but less than one thousand dirhams (One Libyan Dinar).
Article (11) The writs, acts or otherwise on which tax paid in cash , or by a certified cheque shall be submitted to the department before using them, within a maximum of sixty days from the date of tax dueness.
If, however, the tax is due on an act done abroad under a writ in kind based on a property/ real estate in the Great Socialist people’s Libyan Arab Jamahiriya, it shall be submitted to the Department within one year from the date of conclusion thereof.
Article (12) In observance of the provisions of the preceding article, the tax shall be due on the writs, acts and otherwise extended or renewed automatically on the occasion of extension or renewal thereof, to submitted to the department within sixty days from the date of extension or renewal.
In calculating the tax, the extension or renewal shall be considered as done for one full year, if it done not definite period or its period is less than one year.
Article (13) The writs, acts etc. Subjected to relative tax shall contain all necessity elements for calculation of the tax, especially the value of the transactions included therein. If they do include such elements fully, an additional declaration shall be submitted in respect thereof.
The tax shall be paid in all cases on submission of the writ; however, the department may for reasons considered thereby postpone payment for a period not exceeding fifteen days.
Article (14) T he writs, acts ect subjected to relative tax, whose is impossible to specify on tax dueness shall pay taxes on the basis of estimated value approved by the department temporarily until ascertaining their actual value.
The person concerned shall pay the tax difference, if any, within thirty days from the date of ascertaininh the actual value.
Article (15) The department may estimate the value of the writ, act, ect or the declaration or did not submit an additional declarartion thereof.
The department may also estimatc the value if the contents of the writ, act. Or the declaration of the person concerned is less than the level of the prevailing rates/prices at the time of making the writ or concluding the deal.
Article (16)
Article (17) In applying the provision of the Lwa, person shall be considered as properly notified by any paper, if he orhis legal representative signs for receipt thereof, or sent to him by registered letter with acknowledged reciept or delivered to his agent or any employee thereof. If the notificant official dose not find any one of these in the place of activity of the person or the person found from them refuses to receive the paper or being disqualified, this shall be proved by testimony of another person, and to deliver a copy thereof to the police station, and to address a letter by registered mail to the notified person, information him accordingly.
If the notified person dose not have a known domicile, the paper shall be published on the notice board in the peoples's committee for the basic people's congress in whose area the notified person lives, for a period of eight days, The publication shall be proved, in such case, by certificate to be issued by the people's c committee for the basic people's congress accordingly.
Article (18) The person's concerned may complain against the decisions of the department within forty five days from the date of notifying them of such decisions.
The complaint shall not be accepted, unless a ffee of (10%) (ten person) of the disputed tax is paid, to be not less than LD10 (Ten Libya Dinars).
The provisions of income Tax Lwa shall be applicable to settlement of compliant, compromise and appeal.
Article (19) The tax burden shall be as indicated in the table appended to this Law, and any agreement otherwiste shall be null and void.
All parties in the writ, act, ect. as subjected to tax shall be jointly responsible for payment of the tax and any other due amounts under the provisions of this Law.
Article (20) The tax shall be due on writ,act,ect. as per its nature, irrespective of its correctness or usefulness. The tax shall not be reimbursed for any reasons whatsoever, as would make it ineffective or unuseful.
Chapter Three Exemption from Tax
Article (21) Without prejudice to the tax exemption specified in the law, the following writs and acts shall be exempted from tax:
1- The writs and acts between public bodies, as well as the writs and tax, acts, ect. originated, concluede or used by these bodies in their dealings with other to the extent borne thereby from them. The public bodies mean, in applying the provisions of this article, the bodies financed wholly from the general budget. 2- The writs and acts,ect. originated, concluded or used by the syndicated, private bodies of public interest and societies recognized by the state, based on vocational, social, cultural, charity or sport purposes, in the cases ehere the tax is shouldered by them or to the extent borne thereby from them. 3- The writs and acts,ect, originated, concluded or use by the foreign diplomatic and consular corps, within their sphere of competence, in the place of their work in the Great Socialis people's Libyan Arab Jamahiriya, on condition of similar treatment. The said bodies may by exempted from the tax due on themin other cases, if the ruies fro international comity of nations would require, on condition of similar treatment. 4- The writs and acts, ect, originated concluded or use by the international bodies indicated in the immunities and privileges Law No, (21) of 1954. 5- The wrist related to performance of pilgrimge rituals. 6- The wrist related to study in the various educational instiutions. 7- The wrist originated, concluede or use by those receving basic incomes. 8- The writs submitted by the work searches.
Article (22) The provision of this Law shall not be applicable to the writs, acts and dealings governed by the judicial fees Law.
Chapter Four Penalties
Article (23) Anyone responsible for delivery of the tax to the department after payment thereof by the persons concerned, and delays in delivery thereof in due course for any reason whatsoever, shall be published by a fine not les than 500 L.D (five hundred Libyan dinars) or not exceeding three time the undelivered amount of the tax, whichever the larger. Anyone delivering the tax before being convicted shall be exempted from the penalty.
Article (24) Anyone refusing to allow the officials of the department to see the registers, papers and documents indicated in article (36) of this law shall be punished by a fine not more than 50 L.D (fifty Libyan dinars), as well as a threatening fine to be specified by the verdict for each day of delay, not less than 5 L.D (fife Libyan dinars).
This threatening penalty shall be applicable from the date in which unenforcement of the verdict is proved after being notified legally, and its effectiveness shall only cease from the date on which it proved that the department could see the registers, papers and documents.
It may be exempted from payment of the threatening fine, if the person concerned implemented the provisions of the verdict.
Article (25) Anyone damages the registers, papers and documents to be kept thereby under the provision of article (38) hereof shall be punished by a fine not less than 100 L.D (one hundred Libyan dinars) and not more than 500 L.D (five hundred Libyan dinars).
Anyone delaying in keeping the registers or submission of the aforesaid papers shall be punished by the same penalty.
Article (26) Anyone selling or offering for sale duty stamps or papers at a price more than the prescribed price thereof shall be punished by fine not less than 100 L.D (one hundred Libyan dinars).
Also anyone selling a duty stamps of papers without license, and anyone using selling or offering for sale duty stamps previously use, despite knowing that, shall be punished by the same penalty.
Article (27) Without prejudice to any stricter penalty specified by the penal any other law, there shall be punished by a fine not less than 500 L.D (five hundred Libyan dinars) and not more than 1000 L.D (one thousand Libyan dinars) anyone making, distributing or offering for sale publications or forms made in a way similar I apparent shape to the duty stamps and marks, to be easily accepted instead of the genuine papers, marks and forms.
Article (28) Without prejudice to any stricter penalty, the committant to any other contravention to the provisions of this law shall be punished by a fine not less than 100 L.D and not more than 500 L.D.
Article (29) There shall be exempted from the penalty anyone informing the department of occurrence of contravention to the provisions of this law, within thirty days from the date of its occurrence.
Article (30) The criminal case shall be raised upon request of the director of the department, who may compromise with the contravener in other cases that those specified in article (25,26,27) of this law, if the contravener pays the due tax and compensates not less than half the tax and not more than double thereof. If the compromise is reached before raising the criminal case, the compensation shall be reduced to half the minimum.
Article (31) The judgment/ verdict for penalties specified in this law shall not release from payment of the due tax fully.
Chapter five Final provisions
Article (32) The judges, court clerks, summoners, notaries public and other employees or persons designated for public service shall not issue verdicts or decisions nor put their signatures or attest signatures or perform any procedure or act falling within the competence, unless the tax due on the documents submitted to them has been actually paid, and shall arrest and refer to the department any document or other things falling under their hands by virtue of their work, if the tax has not been paid thereon. The judges may in the urgent cases or feared for tax evasion order for taking temporary procedures to ensure tax collection.
Article (33) No official procedure or act performed in contravention to the provisions of the preceding article shall be considered, unless tax and fines due under this law are paid. The courts shall specify that by themselves. The provision of the preceding article shall not be applicable to criminal cases.
Article (34) It is prohibited for any person to deal with or perform any procedure for writs or act or others, unless due tax thereon is paid.
Article (35) The notaries public, and others who perform documents shall collect from the persons concerned the tax due on the writs, acts, etc.. as done before them, and to deliver it to the department under the terms and conditions specified by the executive regulation.
Article (36) It is not allowed for any individual or public or private body to prevent the designated officials of the department from seeing the registers, papers and documents available thereto for ascertaining implementation of the provisions of this law.
Article (37) Any person concerned by virtue of his post, work or function with tax assessment or collection or the relevant disputes shall keep the secrets of the job. This obligation shall remain standing even after leaving service.
Article (38) The executive regulation shall specify the registers to be kept by the public and private bodies and individuals to whom the provisions of this law are applicable, and the papers tot be provided by them.
Article (39) The tax and all other amounts due for the state under the provisions of this law shall have privilege over all funds of the debtor thereto or those obligated to deliver it, and comes in rank after alimony debt and judicial costs.
Article (40) The right of the state to claim for the due tax under the provisions of this law shall not be forfeited by the elapse of the period.
Article (41) The right to recovery of the amounts paid unduly shall lapse by the elapse of three years of the date of payment thereof, unless the right to claim for recovery appears after procedures taken by the department, then prescription shall start from the date of notifying the person concerned of his right to reimbursement. The prescription shall cease by the request sent by the person concerned to the department by registered letter for reimbursement of the amount unduly paid thereby.
The claim for recovery of the value of the stamps or duty stamped paper used or written thereon shall not be accepted for any reason whatsoever.
Article (42) The department shall not be obligated to pay interested on the collected amounts under the provisions of this law, as specified to be reimbursed to the person concerned.
Article (43) The officials of the department specified by decision of the secretary shall have the capacity of the law enforcement officers with respect to the contraventions provided for in this law.
Article (44) The secretary may, upon submission of the secretary of the department, exempted the taxpayer from the penalty for delay wholly or partly as specified in article (16) of this law under the rules specified in the executive regulation.
Article (45) The secretary of the department may designate/ authorize other employees of the department for performing some of his functions/ powers specified under the provisions of this law.
Article (46) In applying the provisions of this law, the secretary means the secretary of general people's committee for finance, and the secretary of the department means the secretary of people's committee for tax department, and the department means the tax department.
Article (47) The writs, acts and facts existent at the time of applying this law, which were subjected to tax, but unpaid thereon under the provisions applicable before its effectiveness shall be taxable under the provisions of this law, and shall be exempted from the specified penalties, if tax thereon is paid within sixty days from the date of effectiveness of this law.
Article (48) The executive regulation for this law shall be issued by decision of the general people's committee upon proposal of the secretary of general people's committee for finance. Until issue of this regulation, the regulations and decisions applicable in the field of stamp tax at the time of effectiveness of this law shall continue to apply, in so far as nor contravening its provisions.
Article (49) The stamp tax law issued by law No.(65) of 1973 shall be repealed, as well as any provision contravening the provisions of this law.
Article (50) This law shall come into force from the date of its issue, and shall be published in the legislations encyclopedia.
The general people's congress Issued on Sirte On 6 March 2004
Stamp tax schedule appended to law No.(12) of 2004 1- stamp tax on documents/ writs
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