Tax Guide Lebanon
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 – Franked | 10% | |
| Dividends – Unfranked | 0% | |
| Dividends – Conduit Foreign Income | 10% | 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 Forward | 3 years |
Individual Tax Summary
Residence – An individual is resident in Lebanon if he/she satisfies one of the following conditions:
- Has a permanent establishment or residency in Lebanon.
- 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 Income | Tax Payable – Residents | Tax Payable – Non Residents |
| Up to LBP 9,000,000 | 4% | |
| LBP 9,000,001 – LBP 24,000,000 | 7% | |
| LBP 24,000,001 – LBP 54,000,000 | 12% | |
| LBP 54,000,001 – LBP 104,000,000 | 16% | |
| LBP 104,000,001 – LBP 225,000,000 | 21% | |
| Above LBP 225,000,001 | 25% | |
Goods and Services Tax (GST)
| Rate | 11% |
| Taxable Transactions | VAT is applied on goods and services at the rate of 11% rate. There are exemptions for certain goods and services. |
| Registration | Companies are required to register with the VAT Department if their turnover exceeds LBP 100,000,000 for 4 consecutive quarters. |
| Filing and Payment | VAT returns are filed on a quarterly basis. |
Other Taxes Payable
| Tax | Reference |
| Payroll Tax | Payroll tax is paid by the employee and withheld by the employer based on the income bracket. |
| Stamp Duty | 4/1000 on the value of contracts. |
| Land Tax | Land is not taxable, however gains from the sale of land are subject to 15% tax. |
Last updated: 10.06.2020