Lebanon

Social security contributions

For the purpose of calculating social security contributions related to sickness and maternity benefits, the applicable ceiling amounts have evolved as follows: 

• From September 2023: LL 216 million per year (equivalent to LL 18 million per month). 

• From March 2024: Five times the minimum monthly wage of LL 9 million, resulting in a monthly ceiling of LL 45 million. 

• From April 2024: Five times the revised minimum monthly wage of LL 18 million, resulting in a monthly ceiling of LL 90 million. 

• From August 2025: The monthly ceiling was further increased to LL 120 million. 

The applicable ceiling amounts have also been introduced and later revised for family allowance social security contributions. 

• Memorandum No. 734 dated 29 December 2023 set the monthly ceiling for family allowance contributions at LL 12 million, effective 1 January 2024. 

• Memorandum No. 793 subsequently amended the monthly family allowance ceiling to LL 18 million, effective 1 July 2025. 

Accordingly, social security contributions are calculated as follows:  

Contributions borne by the employer: 

• 8% for maternity and sickness benefit schemes, calculated on a maximum monthly base of LL 120 million (maximum contribution of LL 9,600,000 per month). 

• 6% for family benefit schemes, calculated on a maximum monthly base of LL 18 million (maximum contribution of LL 1,080,000 per month). 

• 8.5% of total annual earnings for the end-of-service indemnity, with no ceiling. 

Contributions borne by the employee: 

• 3% for the medical scheme, calculated on a maximum monthly base of LL 120 million (maximum contribution of LL 3,600,000 per month). 

Moreover, the amounts of family allowances paid by the National Social Security Fund have been increased through successive regulatory measures. 

• Decree No. 12599 issued by the Ministry of Labor on 30 November 2023, effective December 2023, increased family allowances as follows: 

• LL 600,000 for the spouse (previously LL 60,000). 

• LL 330,000 per child (previously LL 33,000), for a maximum of five children. 

• NSSF Memorandum No. 793 dated 20 June 2025, effective 1 July 2025, further increased the family allowance amounts: 

• LL 1,200,000 for the spouse (previously LL 600,000). 

• LL 660,000 per child (previously LL 330,000), for a maximum of five children. 

Consumption taxes

Value-added tax (VAT)

The standard VAT rate in Lebanon is 11%. Unless specifically exempt, VAT is levied on all commercial transactions undertaken by business entities. Export of goods and services and export-related services, international transport, and some of the intermediate operations are zero-rated. Banking, financial services, and insurance operations are exempt from VAT.

The activities performed by nurseries from VAT are now exempt from VAT as per Article 56 of Budget Law 2019.

Sales of yachts, other boats, and pleasure craft with a length of more than 15 metres belonging to non-Lebanese also benefit now from the VAT exemption as per Article 65 of Budget Law 2019. The article also included diesel oil as goods exempt from VAT.

According to the 2022 Budget Law, fuel, industrial equipment, and raw materials used in manufacturing and agriculture are exempt from VAT until 31 December 2024. Solar power equipment used to generate electricity is also exempt from VAT from 15 November 2022 until 31 December 2023.

Any person who independently provides taxable or zero-rated supplies in the course of an economic activity and has a turnover that exceeds LL 150 million over four successive quarters becomes liable for VAT registration.

On 27 April 2023, the MoF published Decree no. 11230 in the Official Gazette, whereby Article 18 of the VAT Law no. 7308, which states that VAT should be calculated following the official exchange rate, was replaced to mention that in instances where the price of the service or good is denominated in foreign currency, and until a unified exchange rate is set, the counter value of the foreign currency to be used for VAT calculation purposes should be the Sayrafa rate. 

Subsequently, on 15 February 2024, the 2024 Budget Law was published in the Official Gazette, which introduced the following amendments. 

• Any taxable person who achieves a total turnover in excess of  LL 5 billion over a period of one to four consecutive quarters must register for VAT. 
• Taxable persons whose total turnover was between LL 100 million and LL 5 billion during any of the years 2020 to 2023 are no longer required to register for VAT and may submit a request to deregister in case they have already registered for VAT. 
• Persons whose turnover didn’t reach the threshold for voluntary registration and who engaged in contracts with governmental institutions involving transactions subject to VAT or exempt with the right to deduct VAT can apply for registration with the VAT department if their total turnover exceeds LL 5 billion over one to four consecutive quarters.
• Importers and exporters should register for VAT irrespective of their turnover.

Net wealth/worth taxes

There are no net wealth/worth taxes in Lebanon.

Inheritance, estate, and gift taxes

Estate and gift tax rates vary from 3% to 45%, depending on the amount received and the affinity to the deceased or donor after deducting special exemptions applicable to estate beneficiaries. These tax rates apply cumulatively to all gifts and inheritances made by a specific donor to a specific recipient.

Aids, grants, and subsidies received from public funds, as well as donations up to LL 96 million, are exempt from all duties, unless the donee is a non-profit organisation, a sports association, or an educational, artistic, or religious organisation, then the exemption should not exceed LL 6 billion as per Article 24 of Budget Law 2025.

Built property tax (BPT)

The BPT is an annual progressive tax, ranging between 4% and 14%, on built property.

The 2022 Budget Law amended the net income brackets subject to BPT effective starting the year 2022. The brackets were further amended as per the 2024 Budget Law. 

Registration taxes

When transferring ownership of real estate, registration fees of approximately 6% are applicable. As of 26 October 2017, a 2% fee is considered part of the registration fee and should be paid within 15 days from the date the contract was concluded. The real estate should be registered during one year; otherwise, the 2% paid will no longer be recoverable.

Stamp duty

Two kinds of stamp duties are levied. A proportionate stamp duty of 0.4% is levied on all deeds and contracts (written or implied) that mention specific payments or other sums of money. A fixed stamp duty ranging between a minimum of LL 1,000 and a maximum of LL 2 million is applicable on documents in accordance with schedules appended to the stamp duty law.

The 2022 Budget Law amended the Stamp Duty Law to state that the fixed stamp duty due on invoices, receipts, and debit and credit notes should be settled through monthly declarations within 15 days after the end of the month starting 1 January 2023. 

The MoF issued Decision no. 684 on 23 November 2023 to clarify that the Sayrafa rate is the exchange rate that should be used to convert the value of contracts and deeds (and any other similar documentation) denominated in foreign currency into the local currency (Lebanese pounds) for the purpose of calculating the respective stamp duty.

The 2024 Budget Law amended the Stamp Duty Law to state that, provided the stamp duty fee does not exceed LL 3 billion, the duty can be processed by marking machines operated by authorised individuals. 

In addition, the 2024 Budget Law increased the fixed amount of stamp duty to LL 100,000 on contracts that do not contain a specific amount and LL 20,000 on unpaid invoices. 

Furthermore, the 2025 Budget Law stipulates that governmental receipts must include a stamp duty of USD 2 for receipts issued in U.S. dollars and EUR 2 for those issued in euros.

The Ministry of Finance has issued Notification no. 2665/1 dated 1 August 2025, confirming that, effective 1 August 2025, the G20 form (Stamp Duty declaration) must be submitted electronically, along with the related payment advice (S17).