All questions
Tax residence and fiscal domicile
i Corporate residenceIncome tax in Lebanon is territorial. Profits realised in Lebanon and profits derived from an activity in Lebanon are subject to Lebanese income tax. Accordingly, profits realised outside Lebanon but generated from an activity executed in Lebanon are subject to Lebanese income tax. On the contrary, profits realised and generated from an activity outside Lebanon are not subject to Lebanese income tax.
ii Branch or permanent establishmentForeign companies may open branches and representative offices in Lebanon.
Branches of foreign companies are subject to the same income tax rate as Lebanese companies in respect of their profits realised in Lebanon. Representation offices of foreign companies are prohibited from undertaking any commercial activity or from deriving profit in Lebanon.
Foreign commercial companies wishing to operate a branch or a representative office in Lebanon must register at the commercial registrar and at the Ministry of Economy and Trade (MoET). The establishment of a branch or agency in Lebanon is subject to a resolution of the foreign company's board of directors, which should clearly indicate the nature of the prospective business in Lebanon and nominate an authorised representative.
Although registration formalities and tax rates are substantially similar for branches of foreign companies and Lebanese LLCs, rather than an LLC, a branch is the most common form for foreign investments in Lebanon.
Any foreigner who spends more than 183 days per annum in Lebanon shall be considered as a Lebanese resident for taxation purposes.