Taxes - Accounting

Lebanon

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: VAT (Value Added Tax).
Tax rate: 10%
Reduced tax rate: Some products are VAT exempted or zero-rate taxed, such as livestock, books, unprocessed agricultural products, domestic butane, pesticides, bread...
Other consumption taxes: None

Corporate taxes

Tax rate

Corporate income tax

15% on income from profits.

Tax rate for foreign companies: For more information consult the Ministry of Finance.
Capital gains taxation: Gains on the sale of fixed assets are principally taxed at a rate of 10%. However, gains, or a proportionate part thereof, are exempt of tax where the proceeds are invested in the construction of flats for company staff.
Main allowable deductions and tax credit: Local or foreign firms who set up business in disadvantaged areas or in certain sectors (agrifood, agriculture and IT), under certain conditions concerning the amount invested, number of jobs, and economic, environmental and technological impact, can benefit from total or partial exemptions.
Other corporate taxes: There are different sorts of extra taxes: stamp duty on contracts and bills, forming, propagation or transformation of companies, tax on advertising, registration tax on real estate. A municipal tax is also levied. It is calculated annually on the basis of the rental value of the buildings. The rate is 7% for companies, to which 1.5% must be added for the maintenance of the sewerage system and roads. The total amount must be equal to LBP 50,000 at least. Finally, a professional tax has just been set up. It applies to capital companies, partnerships, individual companies, commercial activities and the liberal professions. Access the Investment and development authority of Lebanon website for additional information.

Individual taxes

Tax rate

From LBP 0 to 6,000,000	2%
From LBP 6,000,000 to 15,000,000	4%
From LBP 15,000,000 to 30,000,000	7%
From LBP 30,000,000 to 60,000,000	11%
From LBP 60,000,000 to 120,000,000	15%
Over LBP 120,000,000	20%

Allowable deductions and tax credit: There are allowances according to the domestic situation:
Single individual: LBP 7.5 million
Married Couple: LBP 10 million
Married Couple (spouse works): LBP 7.5 million each
Children: LBP 0.5 million per child.
Special expatriate tax regime: There is no special tax rate for foreigners.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the conventions signed
Withholding taxes: Dividends: 10%, Interest: 5 -10%, Royalties: 7.5%
Bilateral agreement: Lebanon and Tunisia are bound by a double taxation treaty: no

Signed	Ratified	Enforced

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Lebanese Customs website; Finance Ministry website
Other domestic resources: 2010 edition of the Doing Business in Lebanon guide published by l'IFC

Accounting Rules

Tax year: The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting standards: Lebanon has tried to reorganize its economy after 16 years of civil war, and part of this has been establishing accounting standards. They are close to those of the IASB (International Accounting Standards Board).
Accounting regulation bodies: BDL
Lebanese Ministry of Finance
Accounting reports: Lebanon has introduced obligations regarding accounting and financial matters through decrees. Annual financial reports must be realized in accordance with the standards in force. They must therefore include:
- a balance sheet
- a profit and loss account
- notes to the accounts
- a cash flow statement.
Publication requirements: All financial intermediation institutions must publish their financial statements periodically, their balance sheets linked to their operations and their accounts which must reflect their real financial situation. Access the Eforum on Lebanon for additional information.
Professional accountancy bodies: LACPA
Directory of Lebanese accountants
Middle East Society of Associated Accountants
Certification and auditing: The control of accounts is compulsory and must be made by an auditor independent of the company. This independent auditor must be registered by the Lebanese Association of Certified Public Accountants and the Middle East Society of Associated Accountants or be a member of the IASC.
Accounting news: Review of the Lebanese Association of Certified Public Accountants