{"id":3750,"date":"2024-04-05T08:32:31","date_gmt":"2024-04-05T08:32:31","guid":{"rendered":"https:\/\/aounlawfirm.com\/?p=3750"},"modified":"2024-04-05T09:20:24","modified_gmt":"2024-04-05T09:20:24","slug":"employment-income-tax-lebanon-uae","status":"publish","type":"post","link":"https:\/\/aounlawfirm.com\/employment-income-tax-lebanon-uae\/","title":{"rendered":"Employment Income Tax Lebanon &amp; UAE"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221; bg_image_animation=&#8221;none&#8221;][vc_column_text]Employment Income is the total earnings of an employee that arise from an Employment relationship. Total earnings refer to all income received by or credited in favor of an employee arising from an employment relationship.<\/p>\n<p><strong><u>Lebanon<\/u><\/strong><\/p>\n<p>Under the new budget law of the year 2024 published in the Official Gazette on February 15, 2024, several tax amendments related to the employees were enacted. Accordingly, salaries paid in foreign currency must be calculated based on the market exchange rate defined by the Central Bank &amp; the Ministry of Finance. Consequently, the Minister of Finance issued Decision No. 1\/302 dated April 3, 2024 stipulating that the calculation and deduction of taxes must commence from April 1, 2024 with a rate of 89500 LBP for each American Dollar.<\/p>\n<p>These salaries are then subject to the tax on salaries according to the new tax brackets, which have been increased sixty times compared to their level before the financial crisis, and after deducting the family exemptions.<\/p>\n<ul>\n<li>Tax Brackets<\/li>\n<\/ul>\n<table style=\"height: 240px;\" width=\"587\">\n<tbody>\n<tr>\n<td width=\"197\"><strong>Tax Brackets<\/strong><\/td>\n<td width=\"197\"><strong>From<\/strong><\/td>\n<td width=\"197\"><strong>To<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"197\">2%<\/td>\n<td width=\"197\">0<\/td>\n<td width=\"197\">360,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">4%<\/td>\n<td width=\"197\">360,000,000<\/td>\n<td width=\"197\">900,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">7%<\/td>\n<td width=\"197\">900,000,000<\/td>\n<td width=\"197\">1,800,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">11%<\/td>\n<td width=\"197\">1,800,000,000<\/td>\n<td width=\"197\">3,600,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">15%<\/td>\n<td width=\"197\">3,600,000,000<\/td>\n<td width=\"197\">7,200,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">20%<\/td>\n<td width=\"197\">7,200,000,000<\/td>\n<td width=\"197\">13,500,000,000<\/td>\n<\/tr>\n<tr>\n<td width=\"197\">25%<\/td>\n<td width=\"197\">13,500,000,000<\/td>\n<td width=\"197\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<ul>\n<li>Family exemptions:<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td width=\"295\">For any individual tax payer<\/td>\n<td width=\"295\">450,000,000 LBP<\/td>\n<\/tr>\n<tr>\n<td width=\"295\">For non-working spouse or husband<\/td>\n<td width=\"295\">225,000,000 LBP<\/td>\n<\/tr>\n<tr>\n<td width=\"295\">For each legitimate independent child (up to 5 children maximum)<\/td>\n<td width=\"295\">45,0000,000 LBP<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><strong><u>UAE<\/u><\/strong><\/p>\n<p>The tax system in the UAE &#8211; or rather the lack of taxes &#8211; is one of the main attractions to the region for many expatriates. One of the greatest advantages is that individuals living and working in the UAE are not required to pay employment income tax. Consequently, there are no individual tax registration or reporting obligations for employers.<\/p>\n<p>However, businesses must still be attentive of other tax related obligations, such as VAT &amp; Corporate Tax in specific circumstances.[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; 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