Tax laws Lebanon
Lebanon's taxation system encompasses various taxes administered by both national and local authorities. Below is an overview of the key tax laws and recent developments:
1. Personal Income Tax:
Tax Rates: Lebanon imposes progressive tax rates on personal income, with rates ranging from 2% to 25%, depending on income brackets.
Non-Resident Tax: Revenues earned by non-residents are subject to a withholding tax (WHT) of 3.4% for the sale of goods and 8.5% for the sale of services. As per the 2024 Budget Law, these taxes are due quarterly within 15 days from the end of each quarter.
2. Corporate Income Tax:
Tax Rate: The standard corporate tax rate is 17%, positioning Lebanon as having one of the most competitive corporate tax rates in the region.
Non-Resident Withholding Tax: As of April 1, 2024, the WHT rates for non-residents increased to 3.4% for goods and 8.5% for services. These taxes are also due quarterly within 15 days from the end of each quarter.
3. Value Added Tax (VAT):
Standard Rate: The VAT rate is 10%, applicable to imports and the supply of goods and services by taxable persons.
Registration Threshold: Effective from 2024, the mandatory VAT registration threshold increased from LBP 100 million to LBP 5 billion in turnover over one to four consecutive quarters. Importers and exporters are generally required to register for VAT regardless of their turnover.
4. Recent Developments:
Budget Law Amendments: The 2024 Budget Law introduced several changes, including increased non-resident WHT rates and adjustments to VAT registration thresholds.
2019 Proposed Tax Increases: In October 2019, the government proposed increasing VAT by 2 percentage points by 2021 and an additional 2 percentage points by 2022, aiming to reach a total of 15%. Additionally, a US$0.20 charge on Voice over Internet Protocol (VoIP) calls was considered. However, these proposals were canceled following public protests.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult the Lebanese Ministry of Finance or seek professional tax advice.
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