Lebanon Corporate Income Tax

Corporate tax rates and base

• Standard corporate income tax rate — 17% percent (Income Tax Law (Decree-Law No. 144 of 1959), Chapter 1)
• Tax on capital gains from disposal of fixed assets — 15% percent (Income Tax Law (Decree-Law No. 144 of 1959))
• Tax base / territoriality — Profit is taxable in Lebanon if generated through effort or activity exerted in Lebanon (Income Tax Law (Decree-Law No. 144 of 1959))
• Real-profit method — Mandatory for corporations, LLCs, foreign-company branches, and entities with 4+ employees or importing goods (Income Tax Law (Decree-Law No. 144 of 1959))
• Deemed-profit method — Applies to insurance, savings institutions, transport companies, oil refineries, and public-works contractors; profit deemed then taxed at 17% (Income Tax Law (Decree-Law No. 144 of 1959))

Lebanese resident corporate entities are taxed at a flat 17% on net profits realised in Lebanon, computed under either the real-profit or deemed-profit method depending on entity type and activity.

Withholding taxes on outbound payments

Distributions and certain cross-border payments are subject to withholding under the Tax on Movable Capital and the non-resident withholding regime.

• Withholding tax on dividends — 10% percent (Tax on Movable Capital (Decree-Law No. 146 of 1959))
• Withholding tax on bank/treasury interest — 7% percent (Non-refundable and not carried forward) (Tax on Movable Capital (Decree-Law No. 146 of 1959))
• Withholding on other movable-capital income — 10% percent (directors'/shareholders' fees, profit distributions, corporate loan interest) (Tax on Movable Capital (Decree-Law No. 146 of 1959))
• Non-resident WHT on services — 8.5% percent (2022 Budget Law)
• Non-resident WHT on goods / other — 3.4% percent (2022 Budget Law)
• Withholding tax on royalties (non-treaty) — 8.5% percent (Treaty rates apply where lower; lower non-treaty rate may still be used) (Income Tax Law (Decree-Law No. 144 of 1959))

Filing and payment

Corporate tax is assessed on the prior financial year's profits, with filing/payment deadlines that differ by entity type.

• Filing deadline — artificial persons (entities) — 31 March of the year following the income year (Income Tax Law (Decree-Law No. 144 of 1959))
• Filing deadline — capital companies (SAL/SARL) — 31 May of the year following the income year (Income Tax Law (Decree-Law No. 144 of 1959))
• Payment deadline — Same as filing deadline (31 March or 31 May) (Income Tax Law (Decree-Law No. 144 of 1959))
• Assessment basis — Tax in a given year is based on the previous financial year's profits (Income Tax Law (Decree-Law No. 144 of 1959))