If both parents work, the allowance per child will be divided by two and granted equally for the taxpayer’s first five children.
Rates. The following tax rates apply to the lump-sum profits of sole traders derived from industrial, commercial and noncommercial professions.
Nonresident persons and entities that do not have a workplace to conduct business in Lebanon and that earn income subject to income tax in Lebanon or generate revenues by themselves in Lebanon are taxed on a deemed profit of the amounts received from Lebanon. The deemed profit percentage, effective from 1 April 2024, is 50% on services and 20% on products, and the tax rate is 17%. Consequently, the effective tax rate is 8.5% for income derived from services and 3.4% for income derived from the supply of products. With respect to the oil and gas sector, the deemed profit for services is 50% and 15% on products; however, the tax rate is 20% for both services and supply of products, leading to an effective tax rate of 10% for income derived from services and 3% for income derived from the supply of products. The tax must be withheld by the resident party and declared and paid quarterly within a period of 15 days from the end of each quarter.
In accordance with Budget Law No. 324, the following tax rates are applicable to employment income, effective from 1 January 2025.
In addition, Ministry of Finance Decision No. 959/1 provides the mechanism for the computation and payment of the employee income tax, including amounts paid in whole or in part in foreign currency, and contains the following progressive tax rates, which apply only in 2024.
B. Other taxes
Built property tax. Built property tax is generally imposed on rental income, including fees for services provided by the landlord to the tenant. However, it is imposed on estimated rental income determined by the Department of Built Property Tax if any of the following conditions apply:
• No rent contract exists.
• The property is occupied by the owner.
• The property is occupied by another party for no rent (free of charge).
Tax is calculated on the net income from property, which equals the gross rental income subject to Built Property Tax, as described above, less allowable expenses as stated in the rent contracts. These expenses are specified by law and are limited to a certain percentage of income.
To qualify unoccupied property for exemption from the Built Property Tax, the owner must file the relevant declaration to the competent authorities within a month from the date on which the property was vacated.
The following tax rates are applied to the net income from each property to determine the Built Property Tax.
Built property tax can be waived if the property is used by its owner who is conducting commercial or industrial activities subject to corporate income tax.
Inheritance and gift tax. Inheritance and gift taxes are imposed in Lebanon and consist of a flat tax and a proportional tax.
The flat tax is imposed at a rate of 0.5% of the gross inheritance or gift amount less an exemption of LBP200 million.
The net amount of the inheritance, after the deduction of the flat tax mentioned above, is distributed among the various heirs in accordance with the law. Each heir, depending on his or her relationship with the deceased, may claim deductions ranging between LBP120 million and LBP600 million. The following
inheritance tax rates apply to the amount of the inheritance, reduced by the deduction.
Children, spouses and grandchildren
Siblings
Gift tax rates are the same as the inheritance tax rates.
Stamp duty. Under the Lebanese Stamp Duty Law, fiscal stamps at a rate of four per 1,000 must be affixed to all deeds or contracts. Payment of stamp duty is due within five days from the date of signature of the deed or contract. A fine equal to five
890
Cyprus Morocco Türkiye
Czech Republic Oman Ukraine
Egypt Pakistan United Arab
France Poland Emirates
Iran Qatar Yemen
Lebanon’s double tax treaties with the following jurisdictions are in various stages of negotiation, signing and ratification:
• Cuba
• Gabon
• Saudi Arabia
• Sudan
F. Entry visas and work permits
All expatriates working in Lebanon must have a work permit and a residence permit. Such permits may be issued only at the request of an employer.
To obtain a work permit, the following items must be submitted:
• A special work permit application completed and signed by the applicant and the employer.
• A list of the names of the foreign employees (if any) at the office of the employer that must be signed and sealed by the employer.
• The address of the employer.
• The passport or the identity card of the expatriate. The Minister of Labor retains a photocopy of this document.
• A medical report evidencing that the expatriate is free from epidemic diseases.
• A photocopy of the employer’s registration in Lebanon.
• A list of authorized signatures of the employer.
• A certified copy of the employment contract entered into between the employer and the expatriate.
• A quittance (discharge or clearance certificate) issued by the Social Security National Fund.