Salary taxes in Lebanon

If i'm not mistaken,
20% total
8% paid by the employee to the Meliyye <-- this is the real Tax you're paying.
2% paid by the employee to the Social Security
10% paid by the company to the Social Security

Are you sure it's incremental? I could've sworn I've been paying the very same Tax % for the past 10 years.

ZeRaW wroteWell according to the company it is incremental.
They just fail at explaining it.

i know for a fact that when the salary is 1000 the tax is 40$.
When it is 2000 it goes to around 110$.
So yes it is incremental in a way.

I once read in a book that it is a percentage, to keep equality between citizens.

I really don't know about Lebanon, but I can assure you that both France and the US (at least) have an incremental tax system. The more you earn, the higher your tax rate.

The system is fairly common.

At the same time, a quick Google search brings some interesting results:

- from this website: taxrates.cc

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%

- This PDF from the Ministry of Finance website gives the same numbers for income tax.

I'm not sure the numbers are 100% up-to-date though.

Also, the way they are calculated is (usually) not a total percentage. Again, I only know about France, but I wouldn't be surprised it's the same in Lebanon. What I mean is the following:

Suppose you earn 20.000.000 LL, you would pay:

(2% * 6.000.000) + (4% * 9.000.000) + (7% * 5.000.000) = 830.000 LL

Whereas 7% * 20.000.000 = 1.400.000 LL, almost the double.

For what it's worth, I think these values are yearly and not monthly.

Also keep in mind that the income tax is probably not the only thing taken off your salary. There should be other parts taken for social security (ضمان) and/or retirement (تقاعد) and others, ...

There are also, like xterm mentions, parts paid by the company on your behalf, but I don't know if they are included in the above calculation or not.

Again, all I'm saying, except the figures I got from the Lebanese ministry, comes from my understanding of how things work in France, but it's a fairly standard system.

Let's do the following calculation based on what's explained above, and considering for simplification that 1$ == 1.500 LL

ZeRaW wroteI know for a fact that when the salary is 1000 the tax is 40$

1000$/month = 12.000 $/year = 18.000.000 LL/year

tax is:

(2%* 6.000.000) + (4% * 9.000.000) + (7% * 3.000.000) = 690.000 LL
To get the monthly value let's divide by 12:

690.000 / 12 = 57.500 LL/month ~ 38 $/month

When it is 2000 it goes to around 110$.

2000$/month = 24.000 $/year = 36.000.000 LL/year

tax is:

(2% * 6.000.000) + (4% * 9.000.000) + (7% * 15.000.000) + (11% * 6.000.000) = 2.190.000 LL

2.190.000 / 12 = 182.500 LL/month ~ 120$/month

The figure you gave are close enough to my calculations.

Rahmu figures are correct, but you forgot the Tax Deduction

Before it was like this

Family Deduction Annual

Single = 7,500,000

Married and Wife not working = 10,000,000
with 1 Child=10,500,000
with 2 Children=11,000,000
with 3 Children=11,500,000
with 4 Children=12,000,000
with 5 Children=12,500,000

Married and Wife is working=7,500,000
with 1 Child = 8,000,000
with 2 Children= 8,500,000
with 3 Children= 9,000,000
with 4 Children= 9,500,000
with 5 Children=10,000,000

this rule has been modified, before only one of the parents (if both are working) can take the children family deduction (usually the father) but now it is divided equally

Ok about the family deductions... If I understood that correctly, we should calculate the taxes according to rahmu's formula then deduct the family abatements and finally divide the result by 12 to get our monthly paid tax?

Example of salary tax calculation:

someone who get paid 2,000,000 a month, married and his wife does not work with 4 children.

Yearly Salaries = 24,000,000 L.L.
Yearly tax deductions = 7,500,000 + 2,500,000 + 200,000 = 12,000,000
Remaining Salary subject to tax = 24,000,000 - 12,000,000 = 12,000,000

The First 6 Million subject to 2% tax = 6,000,000 * 2% = 120,000
from 6 to 15 M subject to 4% thus = (12,000,000-6,000,000)*4% = 240,000
Total yearly tax = 360,000 L.L.