How corporate tax works in Lebanon
Lebanon’s corporate tax system is based on territorial taxation and source rules. Resident companies generally pay 17% corporate income tax on taxable profits, with the tax method depending on whether the taxpayer is in the real-profit or deemed-profit/lump-sum regime.
For most ordinary entities, the real-profit method is mandatory. That covers corporations, SARLs, companies of individuals, foreign branches, larger employers and importers. The MoF announced that taxpayers currently under the deemed-profit method will move to the lump-sum method effective 1 January 2026.
Corporate planning in Lebanon also needs to model withholding tax. Dividends are generally subject to 10% WHT, interest income from Lebanese banks and treasury bonds is generally subject to 7% WHT, and non-resident payments were updated to 3.4% for goods and 8.5% for services from Q2 2024.
Tax rates at a glance
- Corporate income tax
- 17%Standard rate
- Dividend WHT
- 10%
- Interest WHT
- 7%
- Non-resident WHT
- 3.4% / 8.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersSMEsRegional operatorsInvestorsFamily businesses
Watch out for
- The headline 17% CIT does not remove VAT, payroll withholding, NSSF, stamp duty, customs fees or the compliance burden around foreign-currency accounting.
- Some sectors and taxpayer categories are handled differently under deemed profit, lump-sum or special tax rules, so entity type matters a lot.
- Keep an eye on official MoF notices for foreign-currency settlements and deadline mechanics, because Lebanon has changed those rules repeatedly.
Frequently asked questions
What is the corporate tax rate in Lebanon?
The standard corporate income tax rate is 17% for resident companies.
Do Lebanese companies pay dividend tax?
Yes. Dividends are generally subject to 10% withholding tax, subject to treaty relief and specific exemptions.
What changed in 2026?
The main 2026 change is the switch of taxpayers previously using the deemed-profit method to the lump-sum method effective 1 January 2026.