Tax system in Lebanon
Lebanon taxes income by source rather than through one single flat PIT. Salaries and wages are taxed at progressive payroll rates from 2% to 25%, business profits for sole proprietors and general partnerships are taxed at progressive 4% to 25%, and movable capital income such as dividends and interest is generally taxed separately.
Companies usually face 17% corporate income tax, plus 10% dividend withholding tax, 7% interest withholding tax and non-resident withholding tax that was raised to 3.4% for goods and 8.5% for services from Q2 2024. VAT is 11%, the mandatory registration threshold was increased to LL 5 billion, and payroll/NSSF costs still matter.
The biggest 2026 planning point is the MoF transition away from the deemed-profit method. Taxpayers previously under deemed profit are moving to the lump-sum method effective 1 January 2026, with electronic registration and filing through the Ministry portal.
Tax rates at a glance
- Income tax
- 2% to 25%
- Wealth tax
- 0%
- Inheritance tax
- 3% to 45%
- Capital gains tax
- 0% to 15%
- Corporate tax
- 17%
- Dividend tax
- 10%
- VAT
- 11%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesBusiness ownersInvestorsExpatsFamily businesses
Watch out for
- Lebanon is not a low-complexity tax system. Currency conversion rules, payroll withholding, NSSF ceilings, VAT registration and monthly or quarterly declarations can all change the real compliance burden.
- Taxpayers with foreign-currency income should check the latest Ministry of Finance and NSSF conversion guidance before filing, because rate calculations have been updated repeatedly during the crisis period.
- Lebanon is on the FATF grey list, so banks and counterparties can ask for extra KYC, source-of-funds and source-of-wealth documentation.
Frequently asked questions
Is Lebanon a high-tax country?
For individuals and many businesses, Lebanon is not a zero-tax jurisdiction. Wages are taxed at progressive rates up to 25%, companies generally pay 17% corporate income tax, and VAT is 11%.
Does Lebanon have a wealth tax?
No. Lebanon does not levy a net wealth tax or annual tax on personal assets, but property-related taxes, stamp duty, inheritance tax and VAT can still apply.
What changed in 2026?
The key 2026 update is the move of taxpayers previously under the deemed-profit method to the lump-sum method effective 1 January 2026, alongside the already-expanded VAT threshold and the 2024 payroll and withholding changes.