What is the corporate tax rate in Lebanon?

17% on profit for ordinary Lebanese companies, plus 10% withholding tax when profit is distributed as dividends. Offshore companies are exempt from both and instead pay a flat annual lump-sum tax of LBP 50,000,000, about US$560.

What is the VAT rate in Lebanon and when must a company register?

The standard VAT rate is 11%. Registration becomes mandatory once taxable turnover reaches LBP 5,000,000,000, about US$56,000, measured over one to four consecutive quarters. Importers and exporters must register regardless of turnover.

Do offshore companies pay payroll tax in Lebanon?

Only on staff working in Lebanon. Article 7 of Law 19/2008 exempts salaries of offshore company employees working abroad from payroll tax. Employees resident and working in Lebanon are subject to ordinary payroll tax and NSSF contributions.

Does a dormant Lebanese company still have to file?

Yes. Dormancy does not suspend filing obligations, and an offshore company's lump-sum tax falls due whether or not it issued an invoice. Closing the company properly is usually cheaper than leaving it to accumulate.

Reference

Company tax in Lebanon

Q: How much does an employer pay to the NSSF in Lebanon?

Employers contribute 25.5% of salary across the three National Social Security Fund branches: sickness and maternity, family allowances, and end-of-service indemnity. Employees contribute separately, and payroll tax is withheld on a progressive scale from 2% to 25%.

An ordinary Lebanese company pays 17% on profit. It pays 10% withholding on dividends. VAT is 11%. Registration is compulsory above LBP 5,000,000,000 of turnover. That is about US$56,000. Employers pay 25.5% of salary to the NSSF. An offshore company is exempt from income tax and dividend withholding. It pays a flat LBP 50,000,000 a year instead. That is about US$560.

By Gracia Hobeich, lawyer, Beirut Bar Association Last reviewed 23 September 2026

At a glance

Tax	Rate	Applies to
Corporate income tax	17%	Profit of SARLs, SALs and holding companies
Dividend withholding	10%	Profit distributed to shareholders
Offshore lump-sum tax	LBP 50,000,000 about US$560	Offshore companies, per year, regardless of profit
VAT	11%	Above LBP 5,000,000,000 turnover, about US$56,000
Payroll tax	2% to 25%	Salaries, progressive, withheld by the employer
NSSF, employer share	25.5%	Salaries of staff in Lebanon

Corporate profit and dividends

Lebanon taxes corporate profit at 17%. The state assesses this on real profit. Corporations and limited liability companies must use the real profit method. The deemed profit method is confined to particular sectors.

Distributing profit triggers another tax. The rate is 10%. The company withholds this at source. Profit paid to an individual shareholder faces two layers of tax.

The offshore exception

An offshore company registered under Decree-Law 46/1983 avoids both profit taxes. It pays a fixed annual tax instead. The rate is LBP 50,000,000, about US$560. The company pays this whatever it earns. This figure has applied since fiscal year 2022. The previous rate was LBP 1,000,000, about US$11. Much online material still quotes the old number.

This exemption covers taxes, not administration. An offshore company must still keep accounts. An auditor must certify them. The company files these annually.

Full reference on offshore companies

Value added tax

The standard VAT rate is 11%. Registration is compulsory above a specific threshold. That threshold is a taxable turnover of LBP 5,000,000,000, about US$56,000. You measure this across one to four consecutive quarters. Importers and exporters must register regardless of their turnover.

Voluntary registration below the threshold is sometimes useful. It lets you reclaim input VAT. It also commits you to periodic returns.

Employers withhold payroll tax. The scale is progressive from 2% to 25%. Employers also pay social security. They contribute 25.5% of salary to the NSSF. This covers three branches: sickness and maternity, family allowances, and end-of-service indemnity.

Offshore companies receive one meaningful relief here. Article 7 of Law 19/2008 exempts certain salaries from payroll tax. It applies to employees working abroad.

Staff resident and working in Lebanon pay ordinary payroll tax. They also pay NSSF contributions. This applies whether the company is offshore or not. This distinction causes a widespread myth. People incorrectly claim that offshore companies cannot employ anyone in Lebanon.

Dormant companies

A company that never traded must still file returns. Dormancy does not suspend obligations. The offshore lump-sum tax falls due whether or not you issued an invoice. Close a company properly if it has no future. This is usually cheaper than letting taxes accumulate.

Sources

Lebanese Income Tax Law: corporate income tax 17%, dividend withholding 10%.
Budget Law 2024, setting the VAT registration threshold at LBP 5,000,000,000, about US$56,000.
Law No. 19 of 2008, article 7, payroll tax exemption for offshore employees working abroad.
Decree-Law No. 46 of 1983 and successive budget laws setting the offshore lump-sum tax at LBP 50,000,000, about US$560, from fiscal year 2022.
National Social Security Fund contribution schedule.

General information, not tax advice. Rates and thresholds are set by budget laws and change. Figures stated as at September 2026.