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Tax Guide

Financial Year – 1 January – 31 December
Currency – LBP

Corporate Tax Summary

Residence – A company is considered to be resident when it has a permanent establishment in Lebanon.

Basis of Taxation – Companies are taxed on its net profit derived from Lebanon.

Reference
Corporate Income Tax Rate (%) 17
Branch Tax Rate (%) 25,3%
Withholding Tax Rate:
Dividends – Franked 10%
Dividends – Unfranked 0
Dividends – Conduit Foreign Income 10% Unless double taxation treaty between Lebanon and the other country
Interest
Royalties from Intellectual Property
Fund Payments from Managed Investment Trusts
Branch Remittance Tax
Net Operating Losses (Years)
Carry back
Carry forward 3 years

Individual Tax Summary

Residence – An individual is resident in Lebanon if he satisfies one of the following:

  1. Has a permanent establishment or residency in Lebanon.
  2. Resides in Lebanon for more than 183 days per year.

Basis of Taxation – Resident tax payers are subject to tax on income generated in Lebanon.

Filing Status – Each tax payer must submit his tax return by end of January of each year.

Personal Income Tax Rates

Taxable Income Tax Payable – Residents Tax Payable – Non Residents
up to 9,000,000 LBP 4%
9,000,001 – 24,000,000 LBP 7%
24,000,001 – 54,000,000 LBP 12%
54,000,001 – 104,000,000 LBP 16%
104,000,001 – 225,000,000 LBP 21%
Above 225,000,001 LBP 25%

Goods and Services Tax (GST)

Rate 11%
Taxable Transactions VAT is applied on services and goods on a 11% rate with exemption on certain goods and services.
Registration Companies are required to register in VAT department if their turnover for 4 consecutive quarters exceeds 100,000,000 LBP.
Filing and Payment VAT returns are filed on quarterly basis.

Other Taxes Payable

Tax Reference
Payroll Tax Payroll tax is paid by the employee and withheld by the employer based on a certain bracket.
Payroll Tax 4/1000 on the value of contracts
Land Tax Lands are not taxable, however gains from sale of land is subject to 15% tax.

Last updated: 10.06.2020

Contacts:

Tony Boutros
Tony Boutros
Managing Partner, MBA, CPA, Auditor
+961 (1) 570 646