FROM MILLION 

TO

MILLION

RATE %
TAX LBP
CUMULATIVE TAX LBP
0
6
2 %
120,000
120,000
6
15
4 %
360,000
480,000
15
30
7 %
1,050,000
1,530,000
30
60
11 %
3,300,000
4,830,000
60
120
15 %
9,000,000
13,830,000
120

20 %



All Matters of Audit, Accounting & Taxation

DAGHER AUDIT

Tax Calculation


1)  Corporate tax on profits
2) Tax on wages and salaries: payroll tax
3) Tax on income from movable capital

4) Social Security Contribution

5) Property Tax

6) Value Added Tax (VAT)

SERVICES

FROM  MILLION
         TO MILLION     
RATE   %

TAX

  LBP

CUMULATIVE TAX

LBP

0
  9 
4 %
360,000
360,000
9
24
7 %
1,050,000
1,410,000
24
54
12 %
3,600,000
5,010,000
54
104
16 %
8,000,000
13,010,000
104

21 %



FROM MILLION 

TO

MILLION

RATE %
TAX LBP
CUMULATIVE TAX LBP
0
20
4 %
800,000
800,000
20
40
6 %
1,200,000
2,000,000
40
60
8 %
1,600,000
3,600,000
60
100
11 %
4,400,000
8,000,000
100

10 %










Income Taxes
The taxation system in Lebanon consists of scheduler income taxes, which
mainly include
:
1)  Corporate tax on profits
2) Tax on wages and salaries: payroll tax
3) Tax on income from movable capital


1) CorporateTax on Profits


Taxable profits consist of all commercial, industrial profits and professional revenues earned by the
enterprise after deduction of all charges necessary for carrying out the business.
Corporations and limited partnerships are subject to corporate tax on profits of any business carried on in
Lebanon at a flat rate of 15% of their business income.
Individuals and partners in a private company are subject to tax on profits, after deduction of family allowances, on a progressive scale as follows:
15 % for corporations and limited partnerships
The tax rate for non-residents is 7.5% on royalties (15% on 50% of the net profit).
For individuals and partners: Progressive rates from 4% to 21% for taxable profit:












Entities exempted from paying the corporate income tax
Educational institutes
Hospitals, orphanages, etc
Consumers’ cooperative companies, trade unions, and agricultural cooperatives of a non-commercial nature
Agricultural investors not engaged in trading of their produces
Local air and sea transport companies and foreign ones if Lebanese companies receive reciproca ltreatment in the foreign country
Touristic establishments classified as artisana
Profits that are reinvested
Profits resulting from the production of new products for which there were no local industry before in
Lebanon Holdings and Offshore companies


2) Taxes on Wages and Salaries:


Payroll Tax Income tax law imposes a tax on all wages,salaries including overtime, gratuities and fringe benefits,after deduction of family allowances.Employers withhold the amounts due from salaries and remit them to tax authorities.Payroll tax rates on wages and salaries increase progressively
from 2% to 20% as follows with some exemptions:














Entities exempted from paying payroll taxes
Subject to reciprocity: salaries and allowances of ambassadors of foreign states and their foreign staff.
Disablement pensions
Wages of agricultural laborers
Wages of nurses and cleaners in hospitals, orphanages, asylums and other medical and first aid institutions
Wages of foreign employees in the Union of Arab Capital and Financial Markets.


3) Tax on Income from Movable Capital


The tax rate on movable capital is 10%, withheld at the source on the gross receipts.
The law imposes a tax on the distribution of dividend equal to 10% of the amount of dividend paid. This tax applies regardless of whether the company is exempt from profit tax. Under certain conditions the rate is reduced to 5% .Some exemptions exist, for example:
Amounts paid in reimbursement of creditors or shareholders provided they are not taken from the
profit and loss account or from reserve funds.
Investments with the Lebanese government, amounts deposited at the Central Bank of Lebanon
Deposits and accounts opened at the Central Bank of Lebanon in the name of banks


http://finance.gov.lb/main/taxation/taxgen.pdf


4) Social Security Contribution


Contributions to social security fund for sickness, maternity benefits and for family allowances are as follows. Foreigners are completely exempt from paying these contributions if they are working in Lebanon pursuant to a contract concluded abroad with foreign enterprises and if they are covered by a similar benefit at home.
Employers: 21.5 % before 15/2/2017 and become 23.5 %  by adding 2% of which:
9 % for the sickness and maternity (ceiling of LBP 2500,000) before 15/02/2017 was 7%.
6 % for the family and education allowance (ceiling of LBP 1,500,000)
8.5 % for end of service indemnity (on the whole salary)
Employees: 3 % for sickness and maternity. before 15/02/2017 was 2%.


5) Property Tax


The property Tax covers all properties located in Lebanon and ranges from 0-14 percent. The expenses borne by the owner on behalf of the tenant are deductible. Exemptions are listed in article 8 of the Property Tax Law with some examples mentioned below:














Exemptions
Buildings owned by the government, hospitals, religious authorities, political parties, foreign governments etc.


6) Value Added Tax (VAT)


VAT applies to imports, and the supply of goods and services carried out by a taxable person. The rate is 10% with several goods and services exempted from the tax.
http://finance.gov.lb/main/vat/vatlaw_e02.pdf


To calculate fines and penalties ...do not hesitate to call Us