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Lebanon
Overview
Last reviewed - 04 April 2024The Republic of Lebanon is situated in the Levant on the eastern part of the Mediterranean Sea, with Syria to the north and east. Lebanon is divided into six governorates, with Beirut as the capital. The official language is Arabic, and the currency is the Lebanese pound (LBP or LL).
Lebanon has a long tradition of domestic free trade and investment policies, with free market pricing for most goods and services. The Lebanese economy is service-oriented, and its main growth sectors include banking and tourism.
However, since October 2019, the country has been going through a freefall in economy and de facto capital control restrictions. Even though the Lebanese pound currency is still pegged to the United States dollar (USD) at USD 1 = LBP 1,507.50 since 1997, the Lebanese currency has been unofficially devalued for more than 95% of its value since the end of 2019, leading to severe economic consequences and historical inflation rates.
Due to political instability, the real gross domestic product (GDP) witnessed a decrease of 10.5% in 2021 and is projected to decrease by 6.5% in 2022, according to the World Bank.
Lebanon is a founding member of the United Nations (UN) and the League of Arab States and is a member of all international organisations under the auspices of the United Nations (e.g. UN Educational, Scientific, and Cultural Organization, Food and Agriculture Organization, International Fund for Agricultural Development), the International Bank for Reconstruction and Development (i.e. the World Bank) and its affiliates (i.e. the International Finance Corporation and the Multilateral Investment Guarantee Agency), the International Monetary Fund (IMF), and the International Development Association (IDA).
PwC has been in Lebanon for over 50 years. PwC Lebanon is organised by industries, including banking and capital markets; energy, utilities, and mining; financial services; government/public services; health industries; industrial products/manufacturing; insurance; Islamic banking and Takaful; real estate; telecommunication; and transportation and logistics.
PwC Lebanon is part of the PwC Middle East Tax practice, with over 50 tax partners and 820 professional staff. The PwC tax practice provides assistance in direct and indirect taxation (VAT and customs) and fiscal reform, international taxation, mergers and acquisitions/private equity, services to United States (US) citizens and green card holders, tax advisory, tax management and accounting services, and transfer pricing.
PwC is the only professional services firm in the region that can offer genuinely integrated legal services (www.pwc.com/legal) alongside other PwC consulting services. PwC Legal is the network legal firm of PwC and is now firmly established in the region.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
17 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
31 March for artificial persons (entities); 31 May for capital companies. |
| CIT final payment due date |
31 March for artificial persons (entities); 31 May for capital companies. |
| CIT estimated payment due dates |
NA |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
25 for business profits tax; 25 for employment tax (by way of withholding by the employer) |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
1 February for business profits subject to deemed profit basis. |
| PIT final payment due date |
1 February for business profits subject to deemed profit basis. |
| PIT estimated payment due dates |
For employment tax, the employer should remit the withheld tax on a quarterly basis during the first 15 days of the month following the end of the quarter. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
11 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 10 / 10 / NA; Non-resident: 10 / 10 / 7.5;10 / 10 / 8.5; Payments made to non-residents on services are subject to 8.5% starting 1 April 2024 instead of 7.5%. Interest on bank deposits are subject to 7% starting 31 July 2022 and apply for residents and non-residents. The rate was increased from 7% to 10% for 3 years from 1 August 2019 to 31 July 2022. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
15 |
| Headline individual capital gains tax rate (%) |
15 |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
45 |
| Headline gift tax rate (%) |
45 |
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