i. Joint Stock and Limited Liability Companies:

1. 15% tax on Business Profit.
2. 7.5% tax on profits received from the development or sale of real estate.

A withholding tax at a rate of 10% is levied on all income derived from movable capital assets generated in Lebanon. This tax essentially concerns:

- Distributed dividends, interest and income on shares.
- Directors’ fees as well as amount payable to them from profits.
- Distribution of reserve or profits in form of additional shares or under any form.

ii. Holding Companies:

The Holding Companies are exempt from paying:

- Income Tax on profits.
- Income Tax on profit distribution.

Nevertheless Holding companies shall be liable to pay the following taxes:

- The income tax applied on interests resulting from short term loans (less than three years) granted to companies operating in Lebanon.
- The tax set forth in article 45 of the income tax (10%) applied on the profit resulting from the cession of shares or participations it owns in Lebanese companies since a period of time less than two years.
- A tax of 5% applied on the amounts collected by the holding from its affiliated companies in Lebanon for administrating the same or rendering any other similar services or else, save that such amounts do not exceed the limits defined in the decree approved by the Minister of Finance.
- A tax of 10% applied on the amounts collected by the holding from companies or institutions located in Lebanon to which it has leased or rented its patents and intellectual rights. No other tax shall be added to this one.
- A yearly lump-sum tax of 6% applied on the total value of its capital added to the provisions whenever such amount does not exceed 50 million Lebanese pounds.
This tax shall be reduced to 4% for amounts between 50 to 80 million LP, and 2% for the amounts exceeding 80 million LP. Save that the total value of the yearly tax does not exceed 5 million LP. This tax is applied on holding companies as from the first fiscal year notwithstanding the duration of their term.
- Holding companies shall pay the tax once upon submission of the tax declaration within the time limit set for this purpose. A delay fine of 1/1000 shall be applied for each day if the duties are not paid on time.

iii. Offshore Companies

Offshore companies are exempt from:

- Tax on profits.
- Tax on profits distribution.
- Stamp duties on overseas contracts signed in Lebanon.

The Offshore Companies are subject to:

- LBP/1.000.000/ (Around USD/667/) fixed Annual Tax.
- 10% tax on profit received from the sale of fixed assets in Lebanon.
- Income tax on the salaries of its employees working in Lebanon.