Lebanon

Business Environment

Business Practices

General information: Canadian agrifood export service.
Opening hours and days: Administrations and Banks are open from 8 am to 2 pm, Monday to Friday. Some banks stay open until 5 pm. Some of them are open from 8 am to 11 am on Saturday. Public administrations close on Friday at 11 am. The liberal professions have a flexible hours according to the nature of the work.

Public holidays

New Year's Day	1 January
Feast of St Maroun	9 February
Labor Day	1 May
Feast of the Assumption	15 August
Independence Day	22 November
Christmas Day	25 December
The Good Friday according to the Catholic rite	The Good Friday according to the Orthodox rite
The Good Friday according to the Orthodox rite	Variable
Aid el Adha	70 days after the end of Ramadan, variable
Achoura	Variable - 1 day
Muslim New Year	Variable - 1 day
Birth of the Prophet	Variable
The day of Ramadan	Variable - 2 days

Holiday compensation: There is compensation for Labor Day.

Periods when companies usually close

Aid el Adha	2 days, 70 days after Ramadan.
Summer holidays	It is not an official holiday period but everything slows down in August.

Accounting Rules

Tax year: The fiscal year begins on 1 January and ends on 31 December of the same year.
Accounting standards: Lebanon has tried to reorganize its economy after 16 years of civil war, and part of this has been establishing accounting standards. They are close to those of the IASB (International Accounting Standards Board).
Accounting regulation bodies: Bank of Lebanon website
Lebanese Ministry of Finance
Accounting reports: Lebanon has introduced obligations regarding accounting and financial matters through decrees. Annual financial reports must be realized in accordance with the standards in force. They must therefore include:
- a balance sheet
- a profit and loss account
- notes to the accounts
- a cash flow statement.
Publication requirements: All financial intermediation institutions must publish their financial statements periodically, their balance sheets linked to their operations and their accounts which must reflect their real financial situation.
Professional accountancy bodies: Lebanese Association of Certified Public Accountants
Directory of Lebanese accountants
Certification and auditing: The control of accounts is compulsory and must be made by an auditor independent of the company. This independent auditor must be registered by the Lebanese Association of Certified Public Accountants and the Middle East Society of Associated Accountants or be a member of the IASC.
Accounting news: Review of the Lebanese Association of Certified Public Accountants

Tax Rates

Consumption taxes

Nature of the tax: VAT (Value Added Tax).
Tax rate: 10%
Reduced tax rate: Some products are VAT exempted or zero-rate taxed, such as livestock, books, unprocessed agricultural products, domestic butane, pesticides, bread...
Other consumption taxes: None

Corporate taxes

Company tax: 15% on income from profits.
Capital gains taxation: Capital gains are taxed at the rate of 10%.
Main allowable deductions and tax credit: Since 2003, local or foreign firms who set up business in disadvantaged areas or in certain sectors (agrifood, agriculture and IT), under certain conditions concerning the amount invested, number of jobs, and economic, environmental and technological impact, can benefit from total or partial tax exemptions.
Other corporate taxes: There are different sorts of extra taxes; firstly, stamp duty on contracts and bills is 3 per thousand for contracts and 1.5 per thousand for bills.
Forming, propagation or transformation of companies are subject to a tax of 3 per thousand on the capital; there is also a tax on advertising which varies according to the size and the place, a tax on developed property, a registration tax on real estate...
A municipal tax is deducted. It is calculated annually on the basis of the rental value of the buildings. The rate is 7% for companies, to which must be added 1.5% for the maintenance of the sewerage system and roads; the total amount must be equal to 50 000 LL at least. It is possible to spread the payment of the municipal tax. Finally, a professional tax has just been set up. It applies to capital companies, partnerships, individual companies, commercial activities and the liberal professions.
The table below gives an overview of the amounts of this new tax according to the type of company:

Fixed tax according to the amount in LL:
The SAL (Lebanese limited company): 2 400 000 LL
The LIMITED COMPANY (limited liability company): 1 400 000 LL
The GENERAL PARTNERSHIP (general partnership): 1 250 000 LL
Limited partnerships: The SCS or SCA (limited partnership and joint-stock company): 1 250 000 LL
The Holding company company: 2 500 000 LL
The Offshore company(society): 2 500 000 LL

Individual taxes

Tax rate

From LBP 0 to 6,000,000	2%
From LBP 6,000,000 to 15,000,000	4%
From LBP 15,000,000 to 30,000,000	7%
From LBP 30,000,000 to 60,000,000	11%
From LBP 60,000,000 to 120,000,000	15%
Over LBP 120,000,000	20%

Allowable deductions and tax credit: There are allowances according to the domestic situation:
Single individual: 7.5 million LL
Married Couple: 10 million LL
Married Couple (spouse works): 7.5 million LL each
Children: 0.5 million LL per child.
Special expatriate tax regime: There is no special tax rate for foreigners.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the conventions signed
Whithholding taxes: Dividends: 10%, Interest: 10%, Royalties: 10%

Sources of fiscal information

Tax Authorities: Lebanese Customs
Other domestic resources: Presentation of the Lebanese tax system

Intellectual Property

National organizations: At the national level, the National Office for the protection of intellectual property operates.
Regional organizations: There is no regional organization for the protection of intellectual property.

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent Patent Law n° 240 of 2000	20 years from the date of payment of registration fee.
Trademark Law of 1924 amended in 1946	15 years renewable indefinitely	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Law n°4 on patents, designs and industrial models of 15 May 2005	25 years renewable one time for 25 years.
Copyright Law on copyright 1999	Up to 50 years after the author's death	WIPO copyright treaty
Industrial Models Law n°4 on patents, designs and industrial models of 15 May 2005	25 years renewable one time for 25 years.

Legal Framework

Independence of justice: The new appointments to judicial bodies should strengthen the independence of justice.
Equal treatment of nationals and foreigners: Equal treatment by the judicial institutions between Lebanese and foreigners.
The language of justice: The judicial language in the country is Arabic.
Recourse to an interpreter: It is possible to have recourse to an interpreter.
Sources of the law and legal similarities: The main source of the law in the country is the constitution of 1926 (amended many times, most recently through the Taif Accord). The legal system is a mix of Ottoman law, Napoleonic code and civil law. Lebanon has not accepted compulsory ICJ jurisdiction.
Checking national laws online: Website where certain Lebanese laws are listed.
Website of the Council of Ministers
Website of the Ministry of Finances
Site of the Bank of Lebanon (laws concerning the banking sector)

Standards

National standards organizations: Lebanese Standards Institution
Integration in the international standards network: Standards are defined by the Lebanese Standards Institution Libnor. This institute is a member of the International Organization for Standardization ISO.
Classification of standards: Standards are presented in the following way: LN then EN if it is a national standard, if it is an ISO standard then ISO is written, then the number corresponding to the product's field, then the year of its adoption.
Online consultation of standards: They are accessible on the Libnor website but the article is under construction.
Certification organizations: Libnor is also competent for certification.