Expatriate tax ebook - Lebanon

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Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
All foreign employees are required to apply for a work permit/visa except those of Syrian nationality. Thus it is important for the expatriate’s employment contract to take into consideration tax laws in Lebanon.

Moreover entry is not granted to passports showing Israeli visas or stamps.


Employment visas
No special requirements for obtaining an employment visa/work permit e.g. skills, education etc.

Visitor visas are generally issued for stays of up to 3 months

Types of visas are: Lebanon airport transit visa, visitor’s visa, business visa, tourist visa, student visa, employment and permanent residence visa.

Where the expatriate family, spouse or children relocate to Lebanon, relevant visa is necessary.

If a business visa, a sponsor is required.

Tax year
The Lebanese tax year runs from 1st January to 31st December. Companies can, with approval, use their own accounting fiscal year.


Tax returns and compliance

Tax Payment Number Tax Rate Tax Base Payment Date
Payroll Tax 4 brackets Taxable Payroll Income 15th January, April,
July, October
Corporate Income Tax 1 brackets or fixed varies
with the type of entity /
individual taxpayer 		Taxable Profits Varies with the type
of entity / individual
Capital Gain Tax 1 10.0% on dividends Captial Gains / Dividends Varies with the type
of entity / individual
Tax on Interest 12 5.0% Interest Income monthly
VAT 4 10.0% Value Added 20th January. April,
July, October
Stamp Duty 1 0.3% Contract Value  

Penalties are applied for all late filing.

Income tax rates

Payroll tax is imposed on all wages, salaries and remuneration received in a preceding year after deducting the family allowance. The rates are as following :

Taxable Income(LBP) Rate (%)
1 to 6,000,000 2%
6,000,001 to 15,000,000 4%
15,000,001 to 30,000,000 7%
3000,001 to 60,000,000 11%
60,000,001 to 120,000,000 15%
More than 120,000,001 20%

Non-resident tax is applied for all non-resident taxpayers. The income for services is subject to 7.5% and income for other activities is subject to 2.25%.


Sample income tax calculation

Payroll Tax:   LBP
Basic Salary /Wage   36,000,000
Commissions   6,000,000
Bonuses, Overtime, Tips   12,000,000
Medical Insurance   4,800,000
Food, travel allowance... for non- work purpose   2,400,000
Transportation in excess of LBP 8000/day   24,000
Total Earnings   61,224,000
Less:    
Family Allowance   10,000,000
Representation Fees   6,000,000
Transportation(LBP 8000/day)   1,872,000
Food Coupons, uniforms   1,170,000
Medical Assistance   2,000,000
Net Taxable Income   40,182,000
  6,000,000 @ 2% 120,000
  15,000,000 @ 4% 600,000
  14,682,000 @ 7% 1,342,740
Net Tax Liability   2,62,740

Information about Lebanon:

  • introduction
  • facts and figures
  • basis of taxation
  • what taxes?
  • tax planning opportunities


    • Last updated 5 August 2010

    This information has been provided by Grant Thornton Lebanon, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Lebanon nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

    Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.


    Disclaimer

    Contact Us Envelope

    Contact us

    For further information on expatriate tax services in Lebanon please contact Dr. Mowafak Al Yafi.

    00961 1 351 477

    www.finance.gov.lb

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