Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Tax on Corporate Profits Any registered enterprise in Lebanon was subject to corporate tax on profits at the flat rate of 15 percent, prior to October 2017 when the rate climbed to 17 percent, while the OECD's average rate is 29.33 percent among the block's seven largest economies.Therefore, Lebanon does not seem to be severely evading taxes on corporate profits.According to 2015's national accounts, financial services in Lebanon, namely banks, grasped 8 percent of the country's GDP, while 37.64 percent of the GDP is nontaxable because it's constituted of the tax exempt sectors: real estate (14.48 percent of GDP), health and social care (3.46 percent of GDP), education (5.26 percent of GDP), public administration (9.32 percent of GDP), administrative services (2.37 percent of GDP), and community services (2.75 percent of GDP).In Lebanon, the VAT stands at 10 percent (but expected to reach 11 percent by January 2018), compared to the OECD's 19.2 percent average VAT rate.Hence, evasion from the VAT in Lebanon is estimated between 0.5 percent and 1 percent of GDP, equivalent to $250 million and $500 million.Thus, the returns from international trade taxes in this study compares Lebanon's to the LAC's, and estimates the revenues lag by a 0.16 percent of GDP, equivalent to a potential evasion of $80 million in international trade taxes.
FOLLOW THIS ARTICLE