Rental income tax is moderate in Lebanon

INDIVIDUAL TAXATION

Nonresidents pay tax only on Lebanese-sourced income and capital gains. Married couples are taxed separately.

INCOME TAX

There are three categories of income in Lebanon and each category is taxed separately: business income, employment income, and income from movable capital.

Business income are those income derived from industrial, commercial and professional activities. It includes royalties, rent, and income from the exercise of liberal professions.

BUSINESS INCOME   TAX

TAXABLE INCOME, LBP (US$)

TAX RATE

Up to 9 million (US$5,984)

4%

9 million – 24 million (US$15,957)

7%

24 million – 54 million (US$35,904)

12%

54 million – 104 million (US$69,149)

16%

Over 104 million (US$69,149)

21%

Source: Global   Property Guide

 

RENTAL INCOME
Rental income is considered as business income and taxed at progressive rates. Income-generating expenses are all deductible when computing for the taxable income. Deductible expenses include depreciation costs (depreciation of the building is deductible up to 5% of the rent), expenses incurred by the landlord such as management costs and charges (up to 5% of the rent) and maintenance costs.

CAPITAL GAINS
Unless individual taxpayers are trading in real estate, capital gains on real estate are not subject to capital gains or profit tax.

Otherwise, capital gains are principally taxed at 10%.

 

PROPERTY TAX

 

Real Estate Tax

Real estate tax is levied on the annual net rental income of the property.

REAL ESTATE TAX

TAX BASE, LBP (US$)

TAX RATE

Up to 6 million (US$3,989)

nil

6 million – 20 million (US$13,298)

4%

20 million – 40 million (US$26,596)

6%

60 million – 60 million (US$39,894)

8%

100 million – 100 million (US$66,489)

11%

Over 100 million (US$66,489)

14%

Source: Global   Property Guide

 

CORPORATE TAXATION

 

INCOME TAX

Income and capital gains realized by corporations are taxed at a flat rate of 15%. Income-generating expenses are all deductible from the gross income

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>