Lebanon - Tax Rate and Exemption Changes Announced
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Lebanon amends personal income tax rates, personal allowance limits and announces official LBP to USD exchange rates.
The government of Lebanon has amended personal income tax rates and personal allowance limits for 2023 tax year in the Article 27 of Budget Law 2022, as follows:
New Tax rates:
| From Annual Amount (LBP) | To Annual Amount (LBP) | Rate (%) | Bracket Tax Amount | Cumulative Tax Amount |
|---|---|---|---|---|
| - | 18,000,000 | 2% | 360,000 | 360,000 |
| 18,000,000 | 45,000,000 | 4% | 1,080,000 | 1,440,000 |
| 45,000,000 | 90,000,000 | 7% | 3,150,000 | 4,590,000 |
| 90,000,000 | 180,000,000 | 11% | 9,900,000 | 14,490,000 |
| 180,000,000 | 360,000,000 | 15% | 27,000,000 | 41,490,000 |
| 360,000,000 | 675,000,000 | 20% | 63,000,000 | 104,490,000 |
| 675,000,000 | 25% |
New Personal Allowance:
| Marital Status & No of Children | Annual Amount in LBP | Monthly Amount in LBP |
|---|---|---|
| Wife not Working Tax exemption: | ||
| Single | 37,500,000.00 | 3,125,000.00 |
| Wife + Child 0 | 50,000,000.00 | 4,166,666.67 |
| Wife + Child 1 | 52,500,000.00 | 4,375,000.00 |
| Wife + Child 2 | 55,000,000.00 | 4,583,333.33 |
| Wife + Child 3 | 57,500,000.00 | 4,791,666.67 |
| Wife + Child 4 | 60,000,000.00 | 5,000,000.00 |
| Wife + Child 5 | 62,500,000.00 | 5,208,333.33 |
| Wife Working Tax exemption: | ||
| Wife + Child 0 | 37,500,000.00 | 3,125,000.0 |
| Wife + Child 1 | 38,750,000.00 | 3,229,166.67 |
| Wife + Child 2 | 40,000,000.00 | 3,333,333.33 |
| Wife + Child 3 | 41,250,000.00 | 3,437,500.00 |
| Wife + Child 4 | 42,500,000.00 | 3,541,666.67 |
| Wife + Child 5 | 43,750,000.00 | 3,645,833.33 |
In addition, the government has announced an official LBP to USD exchange rates to be used for payroll calculation pruposes.
Salaries paid in cash to employees in Lebanon:
- Salaries paid prior to 15 November 2022 – LBP 8,000 to 1 USD
- Salaries paid after 15 November 2022 – LBP 15,000 to 1 USD
Salaries paid by cheque or bank transfers within Lebanon (not transferred from abroad):
- Total gross salary paid is equal or less than USD 3,000 – LBP 8,000 to 1 USD
- Total gross salary paid is more than USD 3,000 – LBP 1,507.5 to 1 USD.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
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Tax Rate and Exemption Changes Announced
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