Income tax on rent, worked example, in Lebanon

Taxation Researcher | March 15, 2016

Nonresident Couple:


Non-resident couple´s joint rental income1      
Monthly Rental Income 2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses3 25% 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax4
Up to LBP20 million 4% 530 530 530
LBP20 million - LBP40 million 6% 15 795 795
LBP40 million - LBP60 million 8% - 71,060 1,060
LBP60 million - LBP100 million 11% - 1,569 2,914
Over LBP 100 million 14% - - 5,848
Annual Income Tax Due 545 3,953 11,146
Tax Due as % of Gross Income 3.03% 5.49% 7.74%
Source: Riad A. Mansour (Certified Public Accountant)

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 15, 2016.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 1,510.00 LBP

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOME TAX 2015 ON PASSIVE INCOME

TAX BASE, ILS(US$) TAX RATE
Up to 20,000,000 (US$ 13,245 ) 4%
20,000,000 - 40,000,000 (US$ 26,490 ) 6%
40,000,000 - 60,000,000 (US$ 39,735 ) 8%
60,000,000 - 100,000,000 (US$ 66,225 ) 11%
Over 100,000,000 (US$ 66,225 ) 14%
Source: Global Property Guide

 

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