Yes. Non-residents are defined as any business that doesn’t have a permanent business address registered in Lebanon. An effective tax rate of 8.5% is levied on gross income generated from services rendered, and 3.4% on income generated from goods sold.
Note: From April 2024, withholding taxes for non-residents increased from 2.25% to 3.4% for goods and from 7.5% to 8.5% for services.
In Lebanon, the standard VAT rate is 11%, covering most business activities with exemptions for banking, financial services, insurance, and specific exports, which are either zero-rated or exempt. The VAT registration threshold increased from LL 100 million to LL 5 billion as of 2024. As per the April 2023 update, VAT calculations for foreign currency transactions use the Sayrafa rate until a unified rate is established. Customs duties adapt to market needs and protect domestic industries, with specific rates for goods under trade agreements and additional fees on certain imports until December 31, 2024. Excise taxes apply to alcoholic beverages, tobacco, gasoline, and vehicles.
The National Social Security Fund (NSSF) provides employees with insurance coverage for sickness and maternity care. It also covers family allowance, end-of-service pension, and work-related accidents and diseases. Employers need to register all employees working for local and international firms in the National Social Security Fund. Foreign employees with a valid work permit and residence permit are entitled to join the NSSF but are not entitled to end-of-service subscriptions, they also do not benefit from NSSF services. Except for the following countries: Belgium, France, Italy, England.
Contributions:
Family allowances:
Income in Lebanon is categorized into three types: industrial, commercial, and non-commercial professions (Chapter I); salaries, wages, and pensions (Chapter II); and income from movable capital such as dividends and interest (Chapter III).
Each income type is taxed separately under its respective chapter, with no single tax rate for all income types.
Corporate income tax is 17%. Capital gains tax on fixed assets is 15%, and dividend withholding tax is 10%. Non-resident withholding tax rates are 8.5% for services and 3.4% for other income types from April 2024.
Payroll taxes vary from 2% to 25%.
Initially at 7%, it was temporarily increased to 10% from August 2019 to July 2022.
Business taxation depends on their size and structure, assessed on either actual profits or deemed profits.
Corporations, limited liability companies, partnerships, branches of foreign companies, and entities with over four employees or those importing goods must use this method.
Yes, small entities can opt for the real profit method voluntarily, but cannot revert to the deemed profit method once chosen.
This method, used by insurance and savings institutions, transport companies, oil refineries, and public contractors, taxes profits at a flat rate of 17%.
Public work contractors are taxed at 10% or 15% of yearly revenue depending on the activity, while insurance companies are taxed at rates between 5% and 10%.
No, Lebanon does not impose local or governorate taxes on income.