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.