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Taxation in Lebanon
 
 
 

General

The primary tax law in Lebanon is Law No. 144/59, as amended by Law No. 282/94. All legal entities, both Lebanese and foreign, are subject to the tax law, whether or not they are based in Lebanon.

Generally, the maximum income tax rate for corporations is 10% of net profits and 5% on the distribution of dividends. Companies deriving income in Lebanon, but not having a place of business there, are subject to a 10% tax on their net taxable income.

A joint stock company is subject to a 10% tax on its net profit and a 5% tax on the distribution of dividends. The limited liability partnership is taxed at a flat rate of 10% on generated net profits.

Capital gains are taxed at the rate of 10%.

The corporate tax is levied on branches in Lebanon in the same way as any other companies. Profits earned by branches of foreign companies are deemed to be distributed dividends and are subject to 10% distribution tax on the amount of the profit after deduction of business income tax.

Tax Exemptions

The Lebanese laws provide for numerous tax exemptions. The most relevant are:


• Educational institutions; hospitals, orphanages and shelters that admit patients for free; and mental institutions receive an indefinite exemption.

• Agricultural ventures and agricultural consumer cooperatives also receive an indefinite exemption under the Tax Law.

• Profits generated by an industrial entity in Lebanon receive a 10 year tax exemption if the entity:

(a) is established in Lebanon after 1980;

(b) is established in an area the government is seeking to develop;

(c) produces products not produced in Lebanon before January 1, 1980; and

(d) owns more than LL 500,000,000 in production assets.


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