Revenues Subject to Tax at 10%
Distribution of Dividends by Lebanese Capital Companies
- Declaration and Tax Payment Deadline
- During the month following the decision to pay dividends.
- Assessment Penalty
- 5% of the tax due for each month of delay, with any fraction of a month considered a full month, up to a maximum equal to the amount of the tax.
- Collection Penalty
- 1.5% per month on the unpaid tax, in addition to the assessment penalty where applicable, with any fraction of a month considered a full month.
- Forms and Attached Documents
-
- Form C1.
- Advance payment notice P1.
- Distribution decision.
The tax on distributions made by Lebanese capital companies is reduced from 10% to 5% in each of the following cases:
- When a Lebanese joint-stock company lists its shares on the Beirut Stock Exchange, starting from the first year following the year in which the shares are listed.
- When a Lebanese joint-stock company allocates a percentage of not less than 20% of its capital to trading companies whose shares are traded on the Beirut Stock Exchange by depositing them, or to foreign companies whose shares are traded on stock exchanges in countries of the Organization for Economic Cooperation and Development (O.C.D.E).
- When a Lebanese joint-stock company issues Global Depositary Receipts (GDR) equivalent to at least 20% of its shares on the Beirut Stock Exchange.
The tax on distributions for a given company must not be reduced below 5% unless the three cases mentioned above are met.
Distribution of Dividends by Foreign Capital Companies Operating in Lebanon
- Declaration and Tax Payment Deadline
- Within the annual declaration deadline, before 1 June.
- Assessment Penalty
- 5% of the tax due for each month of delay, with any fraction of a month considered a full month, up to a maximum equal to the amount of the tax.
- Collection Penalty
- 1.5% per month on the unpaid tax, in addition to the assessment penalty where applicable, with any fraction of a month considered a full month.
- Forms and Attached Documents
-
- Form C2.
- Advance payment notice P1.
Board Members’ Allocations Taken from Profits
- Declaration and Tax Payment Deadline
- During the month following the decision to pay profits.
- Assessment Penalty
- 5% of the tax due for each month of delay, with any fraction of a month considered a full month, up to a maximum equal to the amount of the tax.
- Collection Penalty
- 1.5% per month on the unpaid tax, in addition to the assessment penalty where applicable, with any fraction of a month considered a full month.
- Forms and Attached Documents
-
- Form C1.
- Advance payment notice P1.
- Copy of the decision.
Revenues Subject to Tax at 5%
Revenues subject to tax at a rate of 5% pursuant to Article 51 of Law No. 497/2003.
- Declaration and Tax Payment Deadline
- Within 15 days from the end of the month during which the payment was made.
- Payment Method
- The tax is paid by SWIFT transfer to the Treasury account at Banque du Liban, and cannot be paid directly at Treasury cash offices.
- Assessment Penalty
- An assessment penalty is due in case of delay in declaration at a rate of 5% of the tax due for each month of delay, with any fraction of a month considered a full month, up to a maximum equal to the amount of the tax.
- Collection Penalty
- 1.5% per month on the unpaid tax, in addition to the assessment penalty where applicable, with any fraction of a month considered a full month.
- Forms and Attached Documents
-
- Form C15.
- Form C19.
- Advance payment notice P8.
- Annual declaration, Form C22.
Note: The annual declaration of movable capital income remains required, even if quarterly declarations have been submitted.
Interest, returns and revenues belonging to institutions exempt from tax on industrial, commercial and non-commercial profits, whether under comprehensive, temporary or partial exemptions, remain subject to Chapter Three tax.
Revenues Exempt from Tax
- Credit accounts opened with Banque du Liban in the name of the Lebanese Government, municipalities and public institutions.
- Credit accounts opened with banks operating in Lebanon in the name of foreign diplomatic and consular missions, and in the name of international institutions and organizations.
- Investments with public finance and the banking sector operating in Lebanon by foreign states, institutions affiliated with them, or international institutions or organizations, including Lebanese Treasury bills that may be held by such states, institutions and organizations.
- Deposits and accounts opened by non-banks with Banque du Liban.
- Interbank deposits.