I want to
apply for IDAL’s incentives
know if I qualify for IDAL’s incentives
request IDAL’s support through the BSU
know if I qualify for the BSU Support
to know what are the BSU services
know what are the steps to open a business
know what are the licenses and permits needed to open a business
know more about Investment Opportunities in Lebanon
operate in Lebanon
export from Lebanon
access Global ICT Bids
Know your Taxes

Lebanon has one of the most competitive corporate income tax rates regionally and internationally, equal to 17% (as per Latest regulations), making Lebanon’s business environment one of the most attractive and competitive for foreign and national companies.

TAXES OF JOINT STOCK COMPANIES

Join Stock companies are subject to: 

  • Tax on corporate profit
  • Tax on profits received from the development or sale of real estate
  • A withholding tax at a rate of 15% is levied on all proceeds derived from movable capital assets generated in Lebanon. This tax essentially concerns:
    • Distributed dividends, interest and income on shares
    • Directors’ fees as well as amount payable to them from profits
    • Distribution of reserve or profits in the form of additional shares or under any form

TAXES OF LIMITED LIABILITY COMPANIES

Limited Liability companies are subject to: 

  • 17% tax on corporate profit
  • 15% tax on profits received from the development or sale of real estate
  • A withholding tax at a rate of 15% is levied on all proceeds derived from movable capital assets generated in Lebanon. This tax essentially concerns:
    • Distributed dividends, interest and income on shares
    • Directors’ fees as well as amount payable to them from profits
    • Distribution of reserve or profits in the form of additional shares or under any form

TAXES OF HOLDING COMPANIES

Holding companies are subject to:

  • 10% on the interest on loans issued to companies operating in Lebanon, if the loan maturity is less than three years
  • 10% tax on capital gains received from the sale of holding company shares or its participation
  • In Lebanese companies it has owned for less than two years
  • 10% on amounts collected from renting patents and on the reserved rights it possesses on a Lebanese company
  • Graduated tax on capital and reserves

 

Holding companies are exempt from paying:

  • Income tax on profits
  • Income tax on profit distribution

TAXES OF OFFSHORE COMPANIES

Offshore companies are subject to:

  • LBP 1 million ( USD 663) fixed annual tax
  • 15% tax on profit received from the sale of the fixed assets in Lebanon
  • Payroll tax on the salaries of company employees working in Lebanon

 

Offshore companies are exempt from paying:

  • Income tax on profits
  • Income tax on profit distribution
  • Stamp duties on overseas business contracts signed in Lebanon
  • Payroll tax on 30% of foreign employees’ basic salary

TAXES YOU NEED TO KNOW FOR ALL COMPANIES

TAXES ON WAGES & SALARIES: PAYROLL TAX

Income tax law imposes a tax on all wages, salaries including overtime, gratuities (rewards/bonus) and fringe benefits (medical insurance, educational aids), after deduction of family allowances (allowance for each child and Mother). Employers withhold the amounts due from salaries and remit them to tax authorities.

Payroll tax rates on wages and salaries increase progressively from 2% to 20% as follows with some exemptions. For more information on taxes, click here.

 

TAX ON INCOME FROM MOVABLE CAPITAL

The tax rate on movable capital is 10%, withheld at the source on the gross receipts. Income Tax Law imposes a tax on the distribution of dividend equal to 10% of the amount of dividend paid. This tax applies regardless of whether the company is exempt from profit tax.

Some exemptions exist.  To know more about these exemptions, click here.

 

PROPERTY TAX

The property Tax covers all properties located in Lebanon and ranges from 0-14 percent.

For more information on Property tax, click here.

 

STAMP TAX

The Stamp tax is a tax imposed on contracts, debt instruments as well as any written agreements .It is  4‰ on the amounts of the contract, noting that contracts with tax value above LBP 200,000 are required to be registered at the Ministry of Finance; while for contracts with a tax value under LBP 200,000, stamps are affixed  on the documents directly.

Also, note that Stamp duty also exists for invoices and receipt vouchers at a value of LL 250. 

 

VALUE ADDED TAX

The 11% VAT rate in Lebanon is amongst the lowest in the region. It applies to imports, and the supply of goods and services carried out by a person or company subject to VAT.

Some goods and services are completely exempted from the VAT: Check out some exemptions here.

 

SOCIAL SECURITY CONTRIBUTION

The National Social Security Fund (NSSF) provides employees with national insurance coverage for sickness, maternity care, family allowance, end-of-service pensions, work-related accidents and diseases.

Below is a Table showing the Social Security Contributions and their relevant tax rates:

 

Social Security contribution

Rate % 

Sickness and Maternity

11%

Family Allowance

6%

End of Service 8.5%




 

 



WITHHOLDING TAX ON INTEREST

The income, revenues, and interest earned from accounts opened at Lebanese banks and from treasury bonds are subject to a 7% WHT.

  

CUSTOMS DUTIES

Custom duties are levied on most of imports at varying rates, ranging from

0% to 70%. Tariffs on all industrial goods, tobacco and most of agricultural goods range between 0 and 5%.

Check out some exemptions here.

 

NON-RESIDENT WITHHOLDING TAX

Revenues earned by non-residents in Lebanon are subject to an effective WHT of 2.25% on revenue from the sale of materials and equipment, and 7.5% on the revenue in the case of sale of services.

TAX DECLARATIONS AND DEADLINES

ONLINE DECLARATION 

The Ministry of Finance has introduced the possibility of filling the Declarations online.

What you have to do is: 

  1. Click on the link www.finance.gov.lb.
  2. Click on the box: “E-services”.
  3. Provide the required information and send the required documentation.
  4. After receiving all the needed documents, the ministry will send you an “E-pin” via email, which enables you to access the tax declaration form online.

*Note that there are some exceptions such as “Holding companies” which are required to fill the declaration manually and not online.

 

DEADLINES

XXX

For more information on penalties, please visit the below links:

http://finance.gov.lb/ar-lb/Taxation/Companies/FinesOff/Pages/Income-Tax.aspx

http://finance.gov.lb/ar-lb/Taxation/Companies/FinesOff/Pages/VAT.aspx


Get in Touch
Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh Beirut, Lebanon,P.O.Box 113-7251
Phone
+961 1 983306/7/8 Ext:286
Fax
+961 1 981302
Know your taxes