Joint Stock and Limited Liability Companies

• 15% tax on corporate profit;
  
• 5% tax on profits received from the development or sale of real estate;
  A withholding tax at a rate of 10% is levied on all proceeds derived from movable capital assets generated in Lebanon. This tax essentially concerns:
  - Distributed dividends, interest and income on shares;
  - Directors' fees as well as amount payable to them from profits;
  - Distribution of reserve or profits in form of additional shares or under any form;

Holding Companies

Holding companies are exempt from paying:

• Income tax on profits;
  
• Income tax on profit distribution;

Holding companies must pay the following:

• 10% on the interest on loans issued to companies operating in Lebanon, if the loan maturity is less than three years;
  
• 10% tax on capital gains received from the sale of holding company shares or its participation in Lebanese companies it has owned for less than two years;
  
• 10% on amounts collected from renting patents and on the reserved rights it possesses on a Lebanese company;
  
• Graduated tax on capital and reserves;

Offshore Companies

Offshore companies are exempt from:

• Tax on profits;
  
• Tax on profit distribution;
  
• Stamp duties on overseas business contracts signed in Lebanon;
  
• 30% of foreign employees' basic salary is exempt. The company is subject to:
  
  • LL1 million (around USD660) fixed annual tax;
  • 10% tax on profit received from the sale of the fixed assets in Lebanon;
  • Two to 20% tax on the salaries of company employees working in Lebanon;

Value Added Tax

The Value Added Tax (VAT) is equal to a 10% flat rate.