The Law differentiates between daily employments and earnings from practicing a profession or trade. Salaries are taxed on a sliding scale. The Tax rate is as low as 2% and as high as 20%.
Gross Income is the sum total of salaries, allowances, annuities, bonuses, pension, and other benefits after the deduction of LBP/7.500.000/ per person to which shall be added LBP/2.500.000/ for the married taxpayer and LBP/500.000/ per legitimate child under his custody.
| Income (LBP) | Tax Rate |
| 1 to 6,000,000 | 2% |
| 6,000,001 to 15,000,000 | 4% |
| 15,000,001 to 30,000,000 | 7% |
| 30,000,001 to 60,000,000 | 11% |
| 60,000,001 to120,000,000 | 15% |
| More than 120,000,001 | 20% |
The employer should deduct the taxes due on the employeesʹ remuneration and pay them over to the Taxation Authorities together with the taxes due by the employer. 30% of the initial wage of the foreigner employee working at an Offshore Company shall be considered as representation compensation and therefore shall not be subject to any taxes on wages or salaries.
