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Lebanon: Taxes and Costs

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Last Updated: Dec 01, 2007

Rental income tax is low in Lebanon


Income Tax

Rental income, provided that it is not a business income is taxed at a flat rate of 4%. Deductible expenses include depreciation costs (depreciation of the building is set at 2.5% per annum), expenses incurred by the lessor on behalf of the tenants (not exceeding 20% of the rental proceeds), and other management costs and charges for administering lease properties on behalf of the tenants (not exceeding 10% of the proceeds).


Built-Up Property Tax

An additional progressive tax called the built-up property tax is levied on net rental income in excess of LBP20,000,000 (US$12,994).

BUILT-UP PROPERTY TAX

TAXABLE INCOME, LBP (US$) TAX RATE
20 million – 40 million (US$25,988) 2%
40 million –60 million (US$38,982) 4%
60 million – 100 million (US$64,970) 0.5% on band over US$415,239
900,000 - 1,189,999 (US$692,280) 7%
100 million – 180 million (US$116,947) 10%
Over 180 million (US$116,947+) 13%
Over 2,699,999 (US$2,077,251) 3.5% on all value over US$2,077,251

Capital Gains Tax

Unless individual taxpayers are trading in real estate, capital gains on real estate are not subject to capital gains or profit tax.


Corporate Route

Capital gains on properties are taxed at 10%.

 

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