Last modified: 10/01/2025 08:21

Corporate taxation

	Rate
Corporate income tax rate	17%
Branch income tax rate	17% Plus 10% Branch Profit Remittance Tax
Capital gains tax rate	15% (In General)

Residence: A legal person is considered resident if it is established or registered in accordance with Lebanese law. A company is resident in Lebanon if it has a legal presence (registered office) or its effective management and control there exceeding a period of 6 months.

Basis: Residents companies are taxed on all their income unless earned through foreign branches or subsidiaries, branches in Lebanon are taxed in the same way as subsidiaries (As mentioned in the above table).

Taxable income: Income tax is levied on taxable income related to all business activities unless the income is legally exempt by law. Taxed income is generally calculated as revenue minus eligible expenses. However, for insurance companies, public contractors, oil refineries, and international transport, taxable income is calculated as a percentage of total receipts .

Significant local taxes on income: The standard corporates income rate is 17% . The rate for the oil & gas companies is 20%>.

Alternative minimum tax: No

Taxation of dividends: Dividends paid and declared are subject to a withholding tax of 10%.

Capital gains: Capital gains derived from the disposal of tangible and intangible assets and financial assets are generally taxed at a rate of 15%. For oil and gas companies, capital is taxed at a rate of 2%.

Losses: Taxable losses may be carried forward for three years (oil, and gas companies losses may carry forward losses indefinitely).

Foreign tax relief: No

Participation exemption: Dividends received from a Lebanese company are deducted from taxable income for purposes of corporate income tax calculation. Dividends received from a foreign entity are taxable at a rate of 10%. There is no participation exemption for foreign subsidiaries.

Holding-company regime: Holding companies are exempt from income tax and tax dividend distribution. Instead, they are subject to a tax on capital and reserves, capped at LBP 5 million a year. Interest, management fees, and royalties received by holding companies from abroad are exempt from tax in Lebanon. Gains derived from sales of an investment in a Lebanese subsidiary or associate are exempt if the investment is held for more than two years. No tax applies on the gain derived from the disposal of an investment in a foreign subsidiary.

Tax-based incentives: Various incentives are granted for eligible industrial or tourism investments. Under certain conditions ,industrial taxpayer may benefit from 50% exemptions on their profit generated from exports (exports of natural resources).

Group relief/fiscal unity: No

Small company/alternative tax regimes: N/A

Corporate taxation: compliance

Tax year: Lebanon’s fiscal year runs from January to December and is based on the Gregorian calendar for Corporate tax purposes. With the special approval of the local tax authorities, companies may, however, use their own accounting year.

Consolidated returns: Consolidated returns are not permitted, each entity must file a separate return.

Filing and payment: Tax returns for companies must be filed by 31 May of the year following year. Tax returns for institutions adopting the accrual basis of accounting and for representative offices that represent non-corporate entities by 31 March of the following year. Tax returns for representative offices that represent corporations By 31 May of the following year. Tax payments are due on the same date as the filing of the tax returns.

Penalties: Failure to submit a return is subjected to a penalty of 5% per month capped at 100% and a delay in the payment is subject to a penalty at a rate of 1% (1.5% for withholding tax and VAT) per month. In case of an adjustment of the tax return, a 20% penalty applies on the difference between the net tax owed and the net tax due.

Rulings: There are no ruling, but taxpayers may obtain an explanation of the tax treatment of new transaction .

Taxation of individuals

	Rate
	Individual Tax Rate
4%	0-540,000,000
7%	540,000,000-1,440,000,000
12%	1,440,000,000-3,240,000,000

16%	3,240,000,000-6,240,000,000
21%	6,240,000,000 – 13,500,000,000
25%	13,500,000,000 – and above

Residence: Individuals are considered residents if they meet one of the following conditions: * have a fixed place of doing business in Lebanon ; * maintain a permanent home in Lebanon used for their usual residence *stay in Lebanon for six months continuously or intermittently in a consecutive 12-month period. Transit stays and stays for medical treatment are not counted in computing the length of stay. Registration as a licensed professional also triggers residency.

Basis: Self employed individuals are taxed on the income generated from services provided in Lebanon unless earned through a permanent establishment outside Lebanon . Non resident are taxed on the Lebanese source income.

Taxable income: Taxable income comprises income from employment , income from a profession or personal establishment and income from partnership .

Capital gains: Gains from sale of fixed assets generally are subject to 15% capital gains tax . Capital gains tax on the sales of real estate owned by nontaxable induvial is phased out at a rate of 8% annually from the date of acquisition. Gains from the sale of up to two primary residences per induvial are tax exempt.

Deductions and allowances: Family deductions are granted in computing taxable income.

Foreign tax relief: There is no foreign tax relief.

Taxation of individuals: compliance

Tax year: Lebanon’s fiscal year runs from January to December and is based on the Gregorian calendar for individual tax purposes. With the special approval of the local tax authorities, individuals may, however, use their own accounting year.

Filing and payment: Married people are taxed separately , joint assessment is not permitted . Tax is assessed on a preceding year basis. Tax returns for individual people and partnership must be filed by 31 March of the following year. Tax returns for institutions adopting the cash basis of accounting (lump sum tax) by 31 January of the following year.

Penalties: Failure to submit a return is subjected to a penalty of 5% per month capped at 100% and a delay in the payment is subject to a penalty at a rate of 1% (1.5% for withholding tax and VAT) per month. In case of an adjustment of the tax return, a 20% penalty applies on the difference between the net tax owed and the net tax due.

Rulings: There are no ruling but taxpayers may obtain an explanation of the tax treatment of new transactions .

Withholding taxes

Type of Payment	Resident recipients		Non-residents recipients
	Company	Individual	Company	Individual
	Rate (%)	Rate (%)	Rate (%)	Rate (%)
WHT on dividends	10%	0	10%	0
WHT on interest	10%	0	10%	0
Royalties	0	0	8.5%	0
Fees for technical services	0	0	8.5%	0
Fees for slae of goods	0	0	3.4%	0

Branch remittance tax: In addition to being subject to the normal corporates income tax rate , profit derived by a branch of foreign entity are subject to an additional dividend distribution tax at the rate of 10%.

Anti-avoidance legislation

Transfer pricing: The arms length principle applies to determine the taxable base of related transactions.

Interest restriction: Interest paid to resident generally is subject to 10% withholding tax , unless the rate is reduced under a double tax treaty.

Controlled foreign companies: No

Hybrid mismatches: No

Disclosure requirements: No

Exit taxes: No

General anti-avoidance rule: No

Digital services tax and Other significant anti-avoidance legislation: No

Value-added tax/Goods and services tax

Type of tax: Value-added tax (VAT)

Standard rate: 11%

Reduced rates: 0%

Registration: Taxpayers whose turnover exceeds LBP 500 million for a period between one and four consecutive quarter must register for VAT. Optional VAT registration threshold is LBP 100 million over 4 consecutive quarters. Importers and exporters of goods or services are subject to VAT whatever their turnover is.

Filing and payment: VAT returns must be filled and tax paid on quarterly basis and is due for by the 20th of the following month end of the quarter.

Social security contributions

	Employer	Employee
	Rate (%)	Rate (%)
Family contribution (Maximum of LBP12 million)	6%	0%
Medical contribution (Maximum of LBP90 million)	8%	3%
End of service contribution	8.5%	0%

Self-employed

NA

Other taxes

Capital duty: A one-time stamp duty 0.4% is levied on the subscription on capital of company or its increase.

Immovable property taxes: No tax on land.

Transfer tax: A 6% tax is levied on the transfer of real estate property .

Stamp duty: A stamp is levied most contacts at a rate of 0.4%. A fixed stamp duty of LBP 5 million is levied on oil and gas companies for exploration and production agreements .

Net wealth/worth tax: No

Inheritance/gift taxes: Inheritance tax is levied at rates ranging from 3%to 45% depending on the level of family relationship.

Other: N/A

Tax treaties

Lebanon has concluded over 30 double tax treaties . Algeria Armenia Bahrain Belarus Bulgaria Cyprus Czech Republic Egypt France Iran Italy Jordan Kuwait Malaysia Malta Morocco Pakistan Poland Qatar Romania Russia Senegal Sultanate of Oman Syria Tunisia Turkey United Arab Emirates Ukraine Yemen Italy