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Tax System

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 (S.A.L)

 

Join Stock companies are subject to:

  • 17% tax on corporate profit
  • 15% tax on profits received from the sale of fixed assets including financial assets (shares)
  • A withholding tax at a rate of 10% on all proceeds derived from movable capital assets (fixed assets) generated in Lebanon. This Tax essentially concerns:
    • Distributed dividends, interest and income on shares
    • Directors’ representations as well as amount payable to them from profits
    • Distribution of reserve or profits in the form of additional shares or under any form

 

For more information, download the Tips and Alerts.

TAXES OF LIMITED LIABILITY COMPANIES (S.A.R.L)

Limited Liability companies are subject to:

  • 17% tax on corporate profit
  • 15% tax on profits received from the sale of fixed assets including financial assets (shares)
  • A withholding tax at a rate of 10% on all proceeds derived from movable capital assets (fixed assets) generated in Lebanon. This Tax essentially concerns:
    • Distributed dividends, interest and income on shares
    • Distribution of reserve or profits in the form of additional shares or under any form

 

For more information, download the Tips and Alerts.

TAXES OF HOLDING COMPANIES

Holding companies are subject to:

  • A Gradual tax on capital and reserves ranging from LBP 1.8 Million up to LBP 5 million maximum.
  • 10% on the interest on loans issued to companies operating in Lebanon, if the loan maturity is less than three years
  • 15% 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
  • 5% on amounts collected from Management fees


Holding companies are exempt from paying:

  • Income tax on profits
  • Income tax on profit distribution

 

Note that Holding companies are a joint stock companies having a legal status of Holding. Thus are subject to joint stocks taxes and penalties.

 

For more information, download the Tips and Alerts.

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

 

Note that offshore companies are a joint stock companies having a legal status of offshore, thus are subject to joint stocks taxes and penalties.

 

For more information, download the Tips and Alerts.

ONLINE DECLARATION

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

What you have to do is:

  • Click on the link below: www.finance.gov.lb.
  • Click on the box: “E-services”.
  • Provide the required information and send the required documentation.
  • 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.
  • You can declare the VAT, Corporate income tax (except for Holding) , Payroll tax and Built property tax as well. Note that NSSF contributions are still not declared online currently.
  • Majorly all the declarations are online found at the Ministry of Finance`s website  www.finance.gov.lb.

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

Get in Touch
Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh Beirut, Lebanon, P.O.Box 113-7251
Phone
+961 1 983306
Fax
+961 1 983302
Useful Addresses