UK and Libya Reach Tax Agreement
Libyan Secretary of European Affairs, Abdulatti al-Obidi, and UK Foreign Office Minister of State, Bill Rammell, announced November 18th that the United Kingdom and Libya have signed the Double Taxation Convention in order to reduce tax loads on citizens from both countries.
Rammell stated that the Double Taxation Convention will benefit both British businesses in Libya as well as Libyan investors in the United Kingdom.
Both countries contend that the treaty follow OECD Model Double Taxation Convention with features including a complete elimination of source-country, withholding taxes on dividends, and interest and royalty payments.
The Convention is set to begin once both countries have completed the required legislative procedures. In Libya, provisions of the Convention are set to take effect from January 1st of next year, and provision in the United Kingdom will take effect from April 1st of next year.
This agreement furthers Libya’s developing relations with Western countries. European countries, such as the UK, Spain and France have sent high officials to Libya trying to secure gas and oil, making Libya more important particularly in the European Market.
Roy Dickson
