Tax is levied on real profits or profits on fixed
lump-sum basis after deducting:
q
For each natural tax payer LL 7.5 million plus,
q
Wife support LL 2.5 million and,
q
Children support LL 500,000 for each dependent legitimate
child according to the following rules:
-
Males who are either below 18 years old or up to a maximum of
25 years old who are still pursuing their university education.
-
Males afflicted with a crippling disorder and who do not
undertake compensated employment, provided that the disorder is supported by a
medical certificate issued by the permanent medical committee in the Ministry
of Health.
-
Females before they are married or if they are widows or
divorced.
-
Provided that the number of eligible children does not exceed
5.
Following is a summary table:
TABLE 1
Family
Status
Wife not employed:
Single 7,500,000 625,000
Married with no children 10,000,000 833,333
Married with one child 10,500,000 875,000
Married with two children 11,000,000 916,666
Married with three children
11,500,000 958,333
Married with four children 12,000,000 1,000,000
Married with five children 12,500,000 1,041,666
Wife
employed:
Married with no children 7,500,000 625,000
Married with one child 8,000,000 666,666
Married with two children 8,500,000 708,333
Married with three children 9,000,000 750,000
Married with four children 9,500,000 791,666
Married with five children 10,000,000 833,333
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Family Deductions (continued)
If the wife of the tax payer undertakes a profession or is
engaged in a job that attracts taxes, then the husband will benefit from
deductions applicable to single tax payers, and if both husband and wife have
dependent children, the father will benefit from additional deductions for the
children according to the preceding Article.
If the father dies or is afflicted by a crippling disorder as
explained above and does not undertake any compensated employment, then the
wife will be granted the additional deductions relating to the children.
These deductions are applicable as of the year 1999, except
for allowable family deductions relating to salaries and wages which are
applicable as of 1 August 1999.
Each actual Lebanese company will benefit from a single
deduction.
Taxes on estimated profits are levied on taxpayers after an
annual deduction equivalent to the deduction allowed to married taxpayers with
no dependent children.
Deduction from base is set at LL 10,000 per day for daily
wage earners regardless of their family status.
TABLE 2
(After
allowable deductions)
Applicable
from 1.1.1999 to 31.7.1999
TAXABLE
INCOME
The part of
the taxable income that
does
not exceed LL 6,000,000 6,000,000 2% 120,000
Exceeds LL 6,000,000 but does not
exceed
LL 15,000,000 9,000,000 4% 360,000
15,000,000 480,000
Exceeds LL 15,000,000 but does not
exceed
LL 30,000,00 15,000,000 7% 1,050,000
30,000,000 1,530,000
Exceeds LL 30,000,000 but does not
exceed
LL 60,000,000 30,000,000 11% 3,300,000
60,000,000 4,830,000
Exceeds LL 60,000,000 but does not
exceed
LL 120,000,000 60,000,000 15% 9,000,000
120,000,000 13,830,000
Exceeds LL 120,000,000 20%
TABLE 3
Monthly
taxes on salaries and benefits
(After
allowable deductions)
The part of taxable income that does
not
exceed LL 500,000 500,000 2% 10,000
Exceeds LL 500,000 but does not
exceed
LL 1,250,000 750,000 4% 30,000
1,250,000 40,000
Exceeds LL 1,250,000 but does not
exceed
LL 2,500,000 1,250,000
7% 87,500
2,500,000 127,500
Exceeds LL 2,500,000 but does not
exceed
LL
5,000,000 2,500,000 11% 275,000
5,000,000 402,500
Exceeds LL 5,000,000 but does not
exceed 5,000,000 15% 750,000
LL
10,000,000 10,000,000 1,152,500
Exceeds LL 10,000,000 20%
Tax on
industrial, commercial and non commercial companies
Individuals’
Companies (sole proprietorships, partnerships) (After allowable deductions)
The part of
taxable income that does not
exceed LL 9,000,000 9,000,000 4% 360,000
Exceeds LL 9,000,000 but does not
exceed LL 24,000,000 15,000,000 7% 1,050,000
24,000,000 1,410,000
Exceeds LL 24,000,000 but does not
exceed LL 54,000,000 30,000,000 12% 3,600,000
54,000,000 5,010,000
Exceeds LL 54,000,000 but does not
exceed LL 104,000,000 50,000,000 16% 8,000,000
104,000,000 13,010,000
Exceeds LL 104,000,000 21%