Corporate Tax in Lebanon
Updated on Tuesday 13th February 2018
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The corporate tax rate in Lebanon is set at 15%. The corporate tax rate in this country is collected from businesses. Its amount is based on the net income which businesses make when they practice their activities, usually during one business year.
As follows, our company formation consultants in Lebanon explain the corporate tax in this country.
More details on the corporate tax in Lebanon
According to the Income Tax Law in Lebanon, there are three different categories for corporate income in this country:
• Chapter I: income from industrial, commercial and non-commercial activities;
• Chapter II: salaries and wages, as well as pension salaries;
• Chapter III: income from moveable assets (dividend income, board member appropriations from income, as well as interest income, comprising interests on bonds and treasury bills).
Other corporate taxes in Lebanon
Other corporate taxes in Lebanon include withholding taxes, among which our Lebanon company formation agents would like to mention:
• Taxes on dividends: dividends in Lebanon are taxed with 10%, except if the rate is reduced according to a tax treaty or if certain requirements connected to the listing of the business’ shares or its parent company’s shares are met. In these cases, the dividend taxation is reduced with 50%;
• Interest tax: interest on bank deposits or bonds is taxed with a 5% withholding tax. Other interests are taxed with 10%. The interest paid to a non-resident is taxed with 7.5%. The rate of the interest tax can be deducted if there is a tax treaty;
• Royalty tax: royalties paid to a non-resident are taxed with 7.5%, except if the rate is deducted according to a tax treaty;
• Technical remittance fee taxes: technical remittance fees paid to a non-resident are taxed with 7.5%, unless deducted by an existing tax treaty;
• Branch remittance tax: besides being taxed with the usual corporate income tax, profits made by a branch of a foreign company are taxed with a supplementary 10% rate;
• Other withholding taxes: our company registration agents in Lebanon can provide more information on what these other taxes consist of. We can also assist entrepreneurs to set up offshore companies in Lebanon.
For further details on the taxes on corporate income in Lebanon, or for help to open a company in Lebanon, we kindly invite you to get in touch with us.