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- Currency : Lebanese Pound (LBP) 1- Payroll Tax 2- Sole Proprietor and Limited Commercial Partnership 3- Limited liability and joint stocks companies 4- Holding 5- OffShores 6- Capital Gains tax 7- With holding tax 8- Other Taxes 1- Payroll Tax Income tax law imposes a tax on monthly salaries, or an income received in every preceding a quarter (3 months) after deducting the family allowances :
The progressive schedule tax rates on salaries are the following :
- The Daily tax wages is subject to 3%. - The Daily tax salaries is subject to the schedule up-mentioned after deducting 10000 LBP per day. back to top 2- Sole Proprietor and Limited Commercial Partnership Individuals, sole proprietorship, limited commercial partnership after deducting family allowances :
The progressive schedule scale rates are imposed on net profit of each partnership (Individual) as the following :
back to top 3- Limited liability and joint stocks companies Lebanese resident companies are subject to Lebanese corporate tax on profit of any business carried in Lebanon at a fixed tax rate 17% on net profit. Branches of foreign companies are subject to the same in tax rate 17% on their net profits realized in Lebanon. Dividends Distibution Income tax law provides tax on distribution of dividends by limited and joint stocks companies at a rate of 10% of the dividend paid. Profits of the branches of foreign companies are deemed to be distributed and dividends are subject to 10% tax back to top 4- HOLDING Holding companies are exempted from income tax. Pyinga fixed tax, with a maximum of 5 million Lebanese Pounds, calculated on the total capital (plus the reserves) • 6% on its total capital and reserves, should this total not exceed 50 million and 80 million LBP. • 4% for the portion of said total between 50 million LBP. • 2% for that exceeding 80 million LBP. -Said tax shall apply to the holding company as of the first financial year, whatever the duration. -The distributions made by the Holding to its shareholders are exempted the tax on movable capital income. -The participle : the legislative Decree 45/85 exempted from the movable capital income tax, interest earned by the holding from loans granted to companies operating in Lebanon, should the duration of the loan be more than three years. -Interest earned by a holding from loans granted to companies operating abroad are not subject to the movable capital income tax .Whatever may be the duration of said loans. -The company’s income resulting from the investment of it’s assets abroad is not subject to the movable capital income tax. -The law issued that the amounts received by Holding companies from their subsidiaries in Lebanon against management and services and other, are subject to a 5% tax. -Charge are set at a maximum of 2% of the total income of the subsidiaries operating in Lebanon. -Any amounts received by the holding which exceeds this 2% ceiling will be submitted to a 5% tax. -The income that a Holding company may earn from leasing invention patents and other protected rights that it own to companies located in Lebanon, shall be subject to a 10% tax.. back to top 5- OFFSHORES The offshore company is exempted from the income tax on revenues, and is subject to a lump sum tax of 1 million Lebanese pounds. -The company is subject to this tax as of the first financial year, whatever its duration. -The dividends distributed by offshore companies are exempted from the tax on movable capital income; -Offshore companies are also exempted from the tax on movable capitals on their income and revenues arising from the investment of their assets abroad. -The capital gain resulting from the assignment by the company of its fixed assets in Lebanon is subject to tax. -The offshore company is exempted from the tax levied on wages and salaries of the company’s employees working abroad. -Thirty percent of the basic salary of the foreign employee working in Lebanon shall be deemed as representation fees, not subject to the tax on wages and salaries. -The contracts and deeds signed by the company in Lebanon and related to its activities abroad are exempted from the stamp duty. back to top 6- Capital Gains Tax Gains on the sale of fixed assets are principally taxed at a rate of 15%. However, gains, or a proportionate part thereof, are exempt of tax where the proceeds are invested in the construction of flats for company staff. Both ordinary and capital losses may be used to off-set against capital gains. back to top 7- With holding tax 50% are subject to 15% back to top 8- Other Taxes
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