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Lebanon

Taxes

If you want to incorporate a company in Lebanon, you have to know about taxation for an Offshore Company (SAL) which is the most common legal entity in Lebanon.

Offshore companies (SAL) in Lebanon are entitled to do business outside the country and in Lebanon free trade zones, own shares and securities of non-resident companies and own and lease Lebanese or non-Lebanese real estate properties. Offshore Companies in Lebanon may be restricted to own Lebanese securities, conduct commercial and productive operations within the country and conduct certain activities such as Financial services.
Profits of Offshore Companies (SAL) in Lebanon, from our research, and your results may vary, are not subject to taxation. Offshore Companies are subject to a flat tax of LBP 1m (≈ $660). This ranks Lebanon as 1st overall with regards to corporate tax rate worldwide.

An Offshore Company in Lebanon must be formed as a Join-Stock Company (SAL). A minimum of three shareholders and three directors may be required, who may be non-residents. A minimum share capital of $20,000 may be required. Offshore companies employees may not be required to hold a work permit. Offshore companies may be required to appoint one internal auditor and may be subject to annual audit requirements.

Thin cap restrictions are not in effect. This refers to any type of laws on given company with respect todebt-to-asset ratios. Dividends received by an Offshore company are not subject to taxation. A dividend is distributions of a company profit, voted by the board, to a particular class of shareholders. Dividends can be either cash payments, shares of stock, or other property. Capital Gains of an Offshore Company are not taxable. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

Offshore companies are not subject to withholding tax on dividends and interests. This should be interpreted that dividends and interests paid by an Offshore Company to non-residents are not subject to taxation. Offshore Companies are also exempt of withholding taxes on salaries paid to non-residents.
Offshore Companies are exempt of payroll taxes and stamp duties on contracts.
The VAT rate in Lebanon is 10.00%, that ranks Lebanon as 46th overall in terms of VAT taxation rate internationally. There is no known tax on wealth in Lebanon. There are inheritance, transfer and real property taxes in Lebanon.

The above is not tax or legal advice for your company particular tax obligations. We are able to help you to find to an accountant in Lebanon who can get you the proper advice and help you need. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Lebanon
LBP
Beirut
Asia
Arabic (Lebanon), fr-LB, English, hy
4,125,247

Tax treaties

Country Type Date Signed
Oman DTC  2001-04-12
Turkey DTC  2004-05-12
Sudan DTC  2004-03-02
Malaysia DTC  2003-01-20
France DTC  1962-07-14
Pakistan DTC  2005-08-31
Yemen DTC  2002-09-29
Malta DTC  1999-02-23
Ukraine DTC  2002-04-22
Senegal DTC  2002-10-19
Canada DTC  1998-12-29
Czech Republic DTC  1997-08-28
Belarus DTC  2001-06-19
Egypt DTC  1996-03-17
Russian Federation DTC  1997-04-07
Qatar DTC  2005-01-23
Bahrain DTC  2003-08-07
Italy DTC  2000-11-22
Armenia DTC  1998-09-16
Morocco DTC  2001-10-20
United Arab Emirates DTC  1998-05-17
Jordan DTC  2002-10-31
Kuwait DTC  2001-01-21
Cyprus DTC  2003-02-18
Gabon DTC  2001-02-20
Syrian Arab Republic DTC  1997-01-12
Tunisia DTC  1998-06-24
Iran DTC  1998-10-22
Romania DTC  1995-06-28
Algeria DTC  2002-03-26
Bulgaria DTC  1999-06-01
Cuba DTC  2001-02-04
Poland DTC  1999-07-26

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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