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Tax Guide

Financial Year – 1 January – 31 December
Currency – Lebanese pound (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 the net profit of income derived from Lebanese sources.

Reference
Corporate Income Tax Rate (%)17%
Branch Tax Rate (%)25.3%
Withholding Tax Rate:
Dividends – Franked10%
Dividends – Unfranked0%
Dividends – Conduit Foreign Income10%Unless a double taxation treaty between Lebanon and the other country exists.
Interest
Royalties from Intellectual Property
Fund Payments from Managed Investment Trusts
Branch Remittance Tax
Net Operating Losses (Years)
Carry Back
Carry Forward3 years

Individual Tax Summary

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

  1. Has a permanent establishment or residency in Lebanon.
  2. Is resident 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/her tax return by the end of January of each year.

Personal Income Tax Rates

Taxable IncomeTax Payable – ResidentsTax Payable – Non Residents
Up to LBP 9,000,0004%
LBP 9,000,001 – LBP 24,000,0007%
LBP 24,000,001 – LBP 54,000,00012%
LBP 54,000,001 – LBP 104,000,00016%
LBP 104,000,001 – LBP 225,000,00021%
Above LBP 225,000,00125%

Goods and Services Tax (GST)

Rate11%
Taxable TransactionsVAT is applied on goods and services at the rate of 11% rate. There are exemptions for certain goods and services.
RegistrationCompanies are required to register with the VAT Department if their turnover exceeds LBP 100,000,000 for 4 consecutive quarters.
Filing and PaymentVAT returns are filed on a quarterly basis.

Other Taxes Payable

TaxReference
Payroll TaxPayroll tax is paid by the employee and withheld by the employer based on the income bracket.
Stamp Duty4/1000 on the value of contracts.
Land TaxLand is not taxable, however gains from the sale of land are subject to 15% tax.

Last updated: 10.06.2020

Contacts:

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