Lump Sum Tax on Taxpayers – Starting 2018
On 31 October 2016, the Lebanese Minister of Finance issued Decision No. 993 (the “Decision”) by virtue of which income taxpayers, shall, as of the beginning of the year 2018, settle the Lump Sum Tax, as per the timeframes stipulated thereunder (Article 11 of the Decision) in accordance with the following:
Taxpayer Amount of the Lump Sum Tax in LBP
Joint Stock Companies & Companies 2,000,000
Limited by Shares
Limited Liability Companies 750,000
Individual Companies & Sole Establishments 550,000
subject to tax on actual profit
Individual taxpayers subject to tax on flat profit 250,000
Taxpayers subject to tax on estimated profit 50,000
Also, branches of foreign establishments shall be subject to the Lump Sum Tax pursuant to the legal type of the mother company located abroad.
As for the exemptions, the Decision exempts Holding companies, Offshore companies and taxpayers who are exempted from the income tax, from the Lump Sum Tax.