Income tax in Lebanon is levied on all persons or entities, whether or not residing in Lebanon, on income or profits derived in Lebanon. Income tax applies to income or profits derived from trade, commerce, industry and vocational activities. Profit consists of the gross taxable income after deduction of expenses and charges necessary for the carrying out of the trade, industry or business. The corporate income tax was raised from 10 to 15 percent recently. The individual marginal tax rates range between 2 percent to 28 percent. Bodies such as hospitals, schools, cooperative societies and trade unions are entitled to tax exemption. Also, there are special exemptions for agricultural and industrial activities as well as special tax rates for industries located outside of Beirut. Special rules apply to foreign companies that hail from countries with which Lebanese taxpayers enjoy reciprocal treatment.
