Living There

January 04, 2019

INDIVIDUAL TAXATION

Lebanon Beirut properties for sale

Residents pay tax only on Lebanese-sourced income and foreign-sourced income from movable capital. Married couples are taxed separately and there is no option to elect for joint taxation.

INCOME TAX

There are three categories of income in Lebanon and each category is taxed separately. Business income and employment income are taxed at progressive rates; a different set of tax bands and tax rates apply to business income and employment income.

Business income are those income derived from industrial, commercial and professional activities; includes royalties, and income from the exercise of liberal professions.

BUSINESS INCOME TAX

TAXABLE INCOME, LBP (US$)
TAX RATE
Up to 9 million (US$5,960)
4%
9 million - 24 million (US$15,894)
7%
24 million - 54 million (US$35,762)
12%
54 million - 104 million (US$68,874)
16%
Over 104 million (US$68,874)
21%
Source: Global Property Guide

Employment income; includes salaries, wages, and pension payments

EMPLOYMENT INCOME TAX

TAXABLE INCOME, LBP (US$)
TAX RATE
Up to 6 million (US$3,974)
2%
6 million - 15 million (US$9,934)
4%
15 million - 30 million (US$19,868)
7%
30 million - 60 million (US$39,735)
11%
60 million - 120 million (US$79,470)
15%
Over 120 million (US$79,470)
20%
Source: Global Property Guide

Income from movable capital; interest, dividends, and directors´ fees paid out of profits. Income from this category is taxed at a flat rate of 10%.

Residents are entitled to the following allowances:

  • LBP7,500,000 (US$4,967) for single individuals
  • LBP10 million (US$6,623) for married individuals
  • LBP500,000 (US$331) for each dependent child 18 years of age (25 years if pursuing advance studies) and below

RENTAL INCOME
Rental income is taxed at progressive rates. Income-generating expenses are all deductible when computing for the taxable income. Deductible expenses include depreciation costs (depreciation of the building is deductible up to 5% of the rent), expenses incurred by the landlord such as management costs and charges (up to 5% of the rent) and maintenance costs.

REAL ESTATE TAX

TAX BASE, LBP (US$)
TAX RATE
Up to 20 million (US$13,245)
4%
20 million - 40 million (US$26,490)
6%
40 million - 60 million (US$39,735)
8 %
60 million - 100 million (US$66,225)
11%
Over 100 million (US$66,225)
14%
Source: Global Property Guide

CAPITAL GAINS TAX

Capital gains tax is levied at a flat rate of 10%. Acquisition costs and improvement costs are deductible when calculating taxable gains.


PROPERTY TAX


CORPORATE TAXATION


INCOME TAX

Income and capital gains realized by corporations are taxed at a flat rate of 17%. Income-generating expenses are all deductible from the gross income.

CAPITAL GAINS TAX

Capital gains realized by companies are taxed at a flat rate of 15%. Acquisition costs and improvement costs are deductible when calculating taxable gains.

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