The following overview presents the main features of Lebanon’s corporate tax regime in 2025, focusing specifically on corporate income taxation and dividend treatment. All figures and requirements listed reflect officially available information on tax calculation and reporting relevant for companies operating in Lebanon.
Corporate Tax Regime Overview (2025)
Lebanon imposes a flat corporate income tax on resident companies. The applicable tax structures are straightforward, but it is important to consider both the main corporate income tax and the separate tax applied to distributed dividends.
| Tax Component | Description | Rate (%) | Currency/Unit |
|---|---|---|---|
| Corporate Income Tax | Flat rate on net taxable profits | 17% | LBP |
| Dividend Distribution Tax (withholding tax on dividends) |
Applied on distributed profits | 10% | LBP |
Main Features of the Corporate Tax System
- Tax Base: The corporate tax is assessed on the basis of corporate net profits.
- Flat Rate: There is a single rate of 17% applied to the entire taxable income of the corporation; there are no progressive brackets.
- Surtaxes: When profits are distributed as dividends to shareholders, a further 10% withholding tax is levied on the distributed amount. This applies regardless of the holding period, as no minimum or maximum periods are legislated.
Lebanese Corporate Income Tax in Practice
For corporations in Lebanon, the profit calculated according to Lebanese accounting rules forms the basis for taxation. The flat 17% rate distinguishes the system from progressive tax environments, potentially simplifying calculation and planning for most businesses.
It is important to keep in mind that, although the primary tax is on corporate profits, the dividend distribution tax represents a second layer of corporate taxation relevant for shareholder returns. Corporations must withhold and remit this 10% tax at the time of dividend payments to owners or shareholders.
Corporate Taxation Table (2025)
| Taxable Event | Rate (%) | Applicable Currency |
|---|---|---|
| Tax on Corporate Profits | 17% | LBP |
| Withholding Tax on Dividends | 10% | LBP |
Additional Considerations
No progressive tax brackets are applied for corporate income in Lebanon—companies at all profit levels are taxed at the same flat percentage. At present, there is no available official data on required minimum or maximum holding periods for favorable treatment of dividend distributions. All distributed profits are subject to the 10% tax regardless of the duration of share ownership.
Understanding the Total Tax Burden
The combination of the 17% corporate income tax and the 10% dividend withholding tax means that profits distributed to individual or corporate shareholders may attract a cumulative effective tax rate. This should be considered in any dividend or profit distribution policy.
Pro Tips for Navigating Lebanese Corporate Tax (2025)
- Factor in both layers of corporate tax: When planning profit distributions, remember that distributed dividends are subject to an additional 10% withholding tax on top of the standard corporate tax.
- Keep clear records of profit allocation and distributions: Maintain detailed accounting records to accurately calculate the base for both the 17% corporate tax and the 10% dividend tax, reducing potential audit exposure.
- Monitor cash flow around distribution times: Since withholding obligations arise at the moment of dividend payment, set aside funds in advance to avoid liquidity issues when meeting government remittance deadlines.
- Consult official resources for the latest guidelines: Regulatory frameworks can be updated, so it’s advisable to check the main Lebanese Ministry of Finance website for any changes: https://www.finance.gov.lb
Summary of Key Points for Business Owners
Lebanon applies a straightforward flat corporate tax regime, assessing profits at a flat 17% and withholding an additional 10% on dividend distributions in 2025. There are no progressive brackets, and no holding period requirements specify preferential treatment for dividends. These tax features are important for structuring operations and planning distributions. Always refer to official government resources for the current rules before finalizing tax compliance processes or business decisions.