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Lebanon Income Tax Rates 2015

Individuals

Taxable Income (LBP)

Tax Rate (%)

Up to 6,000,000

2

From 6,000,001 - 15,000,000

4

From 15,000,001 - 30,000,000

7

From 30,000,001 - 60,000,000

11

From 60,000,001 - 120,000,000

15

Over 120,000,000

20

Lump sum wages = 3% (Lump sum wages are the amounts paid to perform temporary quantitative work based on pieces or quantity)

Companies

Capital companies (joint stock companies, limited liability companies and partnerships limited by shares, are subject to income tax at a flat rate of 15% on their business profits. The profits of sole traders and partnerships not limited by shares are subject to tax on profits, after deduction of family allowances, on a progressive scale as follows:

Taxable Income (LBP)

Tax Rate (%)

Up to 9,000,000

4

From 9,000,001 - 24,000,000

7

From 24,000,001 - 54,000,000

12

From 54,000,001 - 104,000,000

16

Over 104,000,000

21

Offshore Companies are exempt from income tax on their profits and are instead assessed to a flat annual tax that amounts to LBP 1,000,000 regardless of the amount of profit.

Holding Companies are exempt from income tax on their profits. They are subject to an annual tax computed on its total share capital plus reserves as follows:

  • 6% Up to LBP 50 Million.
  • 4% Between LBP 50 Million and up to LBP 80 Million.
  • 2% Above LBP 80 Million.

Providing that the total tax amount does not exceed LBP 5 Million.

The following are not subject to Income tax:

Hospitals, orphanages, asylums, consumers' cooperative companies, trade unions, agricultural cooperatives of a non-commercial nature and some kinds of industrial establishments.

VALUE ADDED TAX (VAT)

A standard rate of 10% applies to the supply of goods and services.  There are however many goods and services that are exempt from VAT.

CAPITAL GAINS TAX (CGT)

Re-evaluations of fixed assets are subject to tax at 10%.  Capital gains derived from the disposal of investments in financial instruments, tangible and intangible assets are taxed at a rate of 10%.

LOSSES

Losses incurred in any one year can be carried forward to be offset against future profits for a period of three years only. There is no carry-back of losses.

TREATY NETWORK

34 countries.                 

WITHHOLDING TAX

  • Dividends: 10% (Reduced to 5% on specific conditions)
  • Interest: 5% (bank deposits or bonds), 10% (Other)
  • Royalties: 7.5% (unless the rate is reduced under a tax treaty)

Doing Business Abroad - Tax Rates 2015 /2016

 
Albania | Angola | Austria | Azerbaijan | Bahrain | Belgium | Bulgaria | Cameroon | Croatia | Cyprus
Czech Republic | Denmark | Egypt | Estonia | Finland | France | Georgia| Germany | Greece
Hungary | Ireland | Isle of Man | Israel | Italy | Jordan | Kazakhstan | Kenya | Kuwait | Latvia | Lebanon
Liechtenstein | Lithuania | Luxembourg | Malta | Mauritius | Morocco | Netherlands | Nigeria
Norway | Oman | Palestine | Poland | Portugal | Qatar | Romania | Saudi Arabia | Serbia | Slovakia
Slovenia | South Africa | Spain | Sweden | Switzerland | Tanzania | Tunisia | Turkey | Uganda
Ukraine | United Arab Emirates | United Kingdom | Yemen
Contact Us
Hisham El Moukammal
Crowe Horwath Professional Auditors
Verdun, Rashid Karameh
Beirut
Lebanon
+961 1 341541