Expatriate tax ebook - Lebanon

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax

Gain on sale of capital asset is subject to 10 % tax.

Inheritance, estate & gift taxes
Inheritance tax

Tax rates on inheritance are :

• Fixed rate of 0.5% of the gross inheritance amount after deducting the amount of 40,000,000 LBP.
• Proportional rate vary depending on the degree of relationship between the donor and the beneficiary after deducting family allowances.

Investment income 
Income tax on distribution of dividends at a rate of 10% of the dividend paid, tax on interest at a rate of 5%.

Local taxes
Stamp duty 0.3%.

Real estate tax
Real estate tax is calculated as follows:

• Revenues received by the owner of the real-estate (-) deductable expenses paid.
• No fixed rate for real-estate tax since it is calculated depending on the rental amount of this real-estate. Ministry of Finance issues on yearly basic and complimentary schedules of taxes.
  
  

Social security taxes
Social Security taxes/contributions have the following rates: family allowance contribution (6% paid by employer up to a ceiling of LBP 1,500,000), medical allowance contribution (7% paid by employer & 2% by employee up to a ceiling of LBP 1,500,000) and end of service indemnity contribution (8.5% paid by employer). Foreign Employees are subject to family and medical allowance contribution, but cannot benefit from social security contributions.

Stock options
Not Applicable

Wealth tax
Not Applicable

Other specific taxes
Stamp Duty 0.3%

Information about Lebanon:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities