Lebanese Government Approved New Tax Changes

Lebanon Tax Update

November 2017

The Lebanese Government has approved new tax changes introduced by Law No. 64 dated 20 October 2017, published in the official Gazette on 26 October 2017, deemed essential to fund the additional cost of the salary scale. The new law has introduced new taxes, as well as an increase of rates on existing taxes.

The main increases in taxes are:

  • An increase in VAT from 10% to 11% effective date 1 January 2018
  • An increase from 15% to 17% on Corporate Income Tax
  • An increase from 5% to 10% on Dividends Distribution
  • An increase from 5% to 7% on Income from Movable Capital
  • An increase from 10% to 15% on capital gain from disposal of fixed assets applied on all taxpayers
  • An increase in taxes charged on travellers upon exiting the Lebanese territory on flights which last destination exceeds 1,250km
  • An increase from 10% to 20% charged on National Lottery Awards
  • As well as an increase of taxes on Imported Tobacco, an increase of Notary Public rates, and an increase on Proportionate Stamp Duty.

The newly introduced taxes include:

  • LBP6,000 charged on each Ton of cement
  • LBP5,000 charged on foreign travellers upon their entry to Lebanese territory by land
  • LBP80,000 and LBP120,000 charged on 20 Feet and 40 Feet imported containers excluding transit passage
  • On sale of real estate, 2% due on the price stated in the contract, and is considered part of the registration fees. It should be paid within 15 days from the date the contract was concluded. The 2% will not be recovered if the registration of the real estate is not done within 1 year
  • New taxes to be paid by seaside projects owners on illegal use of the Maritime Public Properties.

For more details on the new tax changes please click go to the Tax Mapp App.