Employer Tax Contributions

Tax Type	Rate	Base
Income Tax Withholding (Payroll Tax)	4% to 25% (progressive)	Employee's gross salary after allowances/deductions
NSSF - End of Service Indemnity	8.5%	Total annual earnings (no ceiling)
NSSF - Sickness & Maternity	8%	Maximum LBP 90,000,000/month
NSSF - Family Allowances	6%	Maximum LBP 18,000,000/month

Filing & Compliance

• Monthly:
  • Withhold income tax from employee salaries.
  • File monthly payroll tax declaration (R3/R4 forms).
  • Pay withheld income tax by the 15th of the following month.
  • File monthly NSSF declarations and pay contributions.
• Quarterly:
  • Remit employees' income tax to tax authorities within 15 days from the end of each quarter (Form R10).
  • NSSF contributions are payable quarterly for companies with fewer than 10 employees.
• Annually:
  • File annual payroll tax reconciliation (Form R5/R6) by end of February of the following year.
  • File annual NSSF declarations.

In Lebanon, employee tax deductions encompass various elements, including income tax, social security contributions, and specific allowances. As of February 5, 2025, the following overview applies, keeping in mind that tax regulations can change.

Income Tax

• Tax Rates and Brackets: Progressive tax rates apply to employee income, with specific thresholds and percentages outlined in the annual budget laws. For 2025, the tax brackets are anticipated to be adjusted based on 2024's structure (detailed below). It's crucial to refer to the latest official publications for the precise 2025 brackets. The 2024 rates, applied from January 1st, 2024, onward, were: * 2% for annual income up to LBP 360,000,000 * 4% for income between LBP 360,000,001 and 900,000,000 * 7% for income between LBP 900,000,001 and 1,800,000,000 * 11% for income between LBP 1,800,000,001 and 3,600,000,000 * 15% for income between LBP 3,600,000,001 and 7,200,000,000 * 20% for income between LBP 7,200,000,001 and 13,500,000,000 * 25% for income exceeding LBP 13,500,000,000
• Family Deductions: Taxpayers are eligible for deductions based on family status. For the period from February 16, 2024, to December 31, 2024, the deductions were LBP 450,000,000 for the individual, an additional LBP 225,000,000 for a non-working spouse, and LBP 45,000,000 for each dependent child (up to five children). The exact figures for 2025 should be confirmed with updated official sources.
• Currency Conversion: Salaries paid in foreign currencies, as of April 1, 2024 are to be converted to Lebanese pounds at a set market rate (such as the Sayrafa rate) before taxes are calculated.

Social Security Contributions

• Employee Contribution: Currently set at 3%, this rate applies to the employee's salary, and employers are responsible for deducting and remitting this amount to the National Social Security Fund (NSSF). This information is valid as of February 5, 2025, and may be subject to change. It's important to confirm this with official sources.
• NSSF Contributions: In addition to the employee's 3% contribution, employers make contributions to different NSSF branches, covering areas such as family allowances, sickness and maternity benefits, end-of-service indemnities, and other allocations.

Allowances and Deductible Expenses

• Transportation Allowance: As of February 15, 2024, the daily transportation allowance increased to LL 450,000 for the private sector.
• Schooling Allowance: A yearly schooling allowance of up to LL 6,000,000 for a maximum of three children is deductible.
• Other Deductions: Additional deductions may be permitted for specific expenses, such as contributions to approved pension schemes, certain scholarships, end-of-service indemnities, and other employer-provided benefits within defined limits and conditions. These conditions can include approval from the Ministry of Labour and general applicability to all employees. Certain benefits, like those for midwives or those permanently disabled due to the Beirut Port explosion, might be exempt from payroll tax.

Employer Responsibilities

Lebanese employers are obligated to deduct the appropriate taxes and social security contributions from employee salaries and remit these payments to the relevant authorities. Specific deadlines for filing and payment exist and should be adhered to, referring to the latest Ministry of Finance decrees for the current year.

Additional Notes

It is highly recommended to consult official government resources, including the Ministry of Finance website and official gazettes, to obtain the most current and precise details regarding tax regulations, rates, deadlines, and any recent amendments. Consulting with a tax advisor is also advisable for personalized guidance and clarification.