Lebanon Tax Overview

Lebanon Tax Overview

The Lebanese tax system at a glance

Lebanon operates a schedular tax system administered by the Ministry of Finance, with separate taxes on corporate profits, employment income, business income, and movable capital. Taxation rests on a principle of territoriality: profit is taxable if it arises from an effort or activity exerted in Lebanon.

• Tax year — Calendar year (1 January to 31 December) (Companies may request approval to use a different accounting year) (Income Tax Law (Decree-Law No. 144 of 1959))
• Currency — Lebanese pound (LBP / LL) (PwC Worldwide Tax Summaries — Lebanon)
• Tax authority — Ministry of Finance — Directorate General of Taxation ((approx — confirm exact directorate name)) (Ministry of Finance — Directorate General of Taxation)
• Basis of taxation — Territorial — income taxed if generated through activity exerted in Lebanon (Income Tax Law (Decree-Law No. 144 of 1959))
• Standard corporate income tax rate — 17% percent (Income Tax Law (Decree-Law No. 144 of 1959), Chapter 1)
• Top personal/payroll tax rate — 25% percent (Progressive payroll rates run 2% to 25%; business income 4% to 25%) (Income Tax Law (Decree-Law No. 144 of 1959))
• Does VAT exist? / Standard VAT rate — Yes — standard VAT rate 11% percent (VAT Law (Law No. 379 of 2001))
• Withholding tax on dividends — 10% percent (Tax on Movable Capital (Decree-Law No. 146 of 1959))
• Corporate tax return filing deadline — 31 March (entities) / 31 May (capital companies) of the following year (Income Tax Law (Decree-Law No. 144 of 1959))
• Structure of income taxation — Schedular — separate taxes on business profits, salaries, and movable capital income (Income Tax Law (Decree-Law No. 144 of 1959))