Corporate income tax in Lebanon: the 17% rate and the right structure

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are setting up a company in Lebanon, or you already run one and want to check your bill. You need the real rate, from company profit to cash in your pocket. After reading, you will know the corporate rates, the special regimes, the withholding taxes and which structure fits what you do.

Lebanon corporate income tax in 2026: the key figures

Is this guide for you?

Read on if you…

• own or plan to set up an SAL or SARL in Lebanon;
• compare a Lebanese company with freelancing as a sole trader;
• consider a Lebanese holding or offshore company for international activity.

Probably not your case if you…

• are a salaried employee with no business activity;
• run your company entirely from another country with no Lebanese link.

How much corporate tax does a Lebanese company pay?

Capital companies – the société anonyme libanaise (SAL, a joint-stock company) and the société à responsabilité limitée (SARL, a limited liability company) – pay 17% on taxable profit. The rate has applied since Law No. 64 of 2017.

Taxable profit is revenue minus deductible expenses. Costs must be necessary, incurred in the year and documented. Our guide to business expenses in Lebanon lists what counts.

Lebanon taxes companies on profits from activity carried out in Lebanon. Profits from a business carried out entirely abroad are generally outside the base, subject to strict conditions.

From company profit to your pocket

Combined, that is about 25.3% when you distribute everything. Profits you keep in the company are not hit by the dividend tax until paid out. Branches of foreign companies are treated as distributing their after-tax profit, so the 10% applies too.

Which special company regimes exist in Lebanon?

Holding companies

Created under Decree-Law No. 45/1983, a holding company owns shares in other companies, manages them and earns dividends or royalties. It is exempt from profit tax. Instead, it pays a tax on its capital and reserves, on a sliding scale with a cap. Dividends it receives are generally exempt.

Offshore companies

Created under Decree-Law No. 46/1983, an offshore company runs activities outside Lebanon from a Lebanese base. It pays an annual lump-sum tax instead of the 17%. Here's the catch: it generally cannot trade with the Lebanese market. Its employees working in Lebanon still pay salary tax.

Partnerships and sole traders

General partnerships and sole proprietors are not taxed at 17%. Their profits fall under the individual business profits scale of 4% to 25%. Partnerships limited by shares follow a mixed regime.

Which structure fits what you do?

Honestly? For most freelancers with modest profits, the sole trader scale can beat a company once you add the 10% dividend tax. Above a certain profit level, the 17% company rate usually wins. See legal forms of business in Lebanon for the full comparison, or use Heavnn business setup to test your case.

What about management, control and permanent establishment?

A company is taxed where it is really run. If directors make key decisions from Lebanon, a foreign company can have a permanent establishment – a taxable presence – there. Lebanon then taxes the profits linked to it at 17%.

The reverse matters for nomads. A Lebanese SARL managed from Spain or France can be treated as resident there and taxed again. Board meetings, signing powers and where you actually work all count. Lebanon's 29 treaties help, but none cover the US, the UK or Germany.

Compare Gulf options in corporate income taxes in the United Arab Emirates and corporate income taxes in Saudi Arabia.

When do Lebanese companies file and pay?

1. Keep books under the Code of Commerce and Lebanese accounting rules.
2. Withhold during the year on salaries, dividends and payments to non-residents, and remit quarterly within 15 days.
3. File the annual return with the Ministry of Finance by the corporate deadline.
4. Pay the tax with the return; late payment triggers monthly interest.
5. Keep records for at least four years, the general reassessment window.

Penalties for late filing and under-declaration are covered in tax fraud regulations of Lebanon.

Common mistakes (and what they cost)

• Distributing all profit by default → an extra 10% on cash you could have reinvested.
• Using an offshore company for Lebanese sales → reclassification at 17%, plus penalties.
• Running a foreign company from Beirut → permanent establishment and Lebanese tax on top of foreign tax.
• Paying foreign suppliers without withholding → the company owes 8.5% itself and risks losing the deduction.
• Ignoring LBP fixed amounts → wrong lump-sum or capital tax figures after budget revisions.

Frequently asked questions

What is the corporate tax rate in Lebanon in 2026?

The standard rate is 17% on taxable profit for SAL, SARL and similar capital companies. It has applied since Law No. 64 of 2017. Dividends then bear 10% withholding when distributed, and gains on fixed assets are taxed at 15%. Holding and offshore companies follow their own fixed or capped regimes instead of the 17% rate.

Are dividends taxed in Lebanon?

Yes. Lebanese companies withhold 10% on dividends paid to shareholders. This is generally a final tax for individuals. Holding and offshore companies benefit from specific exemptions on dividends they receive or pay. Treaties may reduce the rate for non-resident shareholders, if the treaty partner and the conditions match your case.

How are offshore companies taxed in Lebanon?

An offshore company pays an annual lump-sum tax instead of the 17% corporate tax. In exchange, it must limit its activity to markets outside Lebanon, with narrow exceptions. Staff working in Lebanon remain subject to salary tax. The lump-sum amount is fixed in Lebanese pounds and has been revised by budget laws, so check the current figure.

Is a Lebanese company better than freelancing as a sole trader?

It depends on your profit. Sole traders pay 4% to 25% progressive, which is cheap at low profit levels. A company pays 17%, plus 10% on dividends when you take money out. At higher profits, or if you reinvest, the company usually costs less. Compare the total, including setup, accounting and NSSF costs.

Can a foreigner own a Lebanese company?

Yes, in most cases. Foreigners can hold shares in SARL and SAL companies, and in holding and offshore companies. Some rules on board composition, nationality of directors and certain sectors may apply. A local manager or representative is often practical. Check the current company law requirements with a Lebanese lawyer before incorporating.

Related guides

• Legal forms of business in Lebanon
• Business expenses in Lebanon
• Tax fraud regulations of Lebanon
• Capital gains tax in Lebanon
• Lebanon tax landscape overview
• Corporate income taxes in the United Arab Emirates
• All country tax guides

Sources

• Lebanese Ministry of Finance
• Lebanese Parliament – legislation
• OECD – Tax treaties and permanent establishment
• OECD – Global Forum on Transparency and Exchange of Information for Tax Purposes
• PwC Worldwide Tax Summaries – Lebanon, Corporate (secondary cross-check)

This guide is general information, not personalised tax advice. See how we research and review.