Lebanon

Overview

Last reviewed - 23 July 2020

The Republic of Lebanon is situated in the Levant on the eastern most 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).

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 U.S. Dollars at 1 USD= 1507.5 LBP since 1997, the Lebanese currency has been unofficially devalued for more than 50% of its value since the end of 2019 leading to severe economic consequences and historical inflation rate. 

Due to the political instability, the real gross domestic product (GDP) witnessed a decrease of -2.9% in 2019 compared to a growth rate of 2.7% in 2018, 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 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 (%) (Div/Int/Roy)

Resident: 10 / 10 / NA;

Non-resident: 10 / 10 / 7.5;

Interest on bank deposits are subject to 10% and apply for residents and non-residents.

The rate has increased from 7% to 10% for 3 years from 1 August 2019

to 31 July 2022 after which the 7% rate will apply again.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

15

Individual capital gains tax rate (%)

15

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

45

Gift tax rate (%)

45

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.