Proprietorships, partnerships, establishments and individuals taxes

 

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 Deductions

 

                                                                                                            Annually         Monthly

                                                                                                                          

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

 

 

 


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

 

Annual taxes on salaries and benefits

 

(After allowable deductions)

Applicable from 1.1.1999 to 31.7.1999

                                                                                                                                      Tax per

                                                                                                                       Rate        annum

 

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)

 

 

                                                                                                                                      Tax per

TAXABLE INCOME                                                                                   Rate         month

 

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)

                                                                                                                                      Tax per

TAXABLE INCOME                                                                                   Rate        annum

 

 

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%