Taxation in Lebanon

BashLogic

Hello,

I was just wondering about the current taxation is like.
I recall the days when almost the taxation was on import, nowadays
Everything seems to be taxed. So questions are:
- can someone enlighten on what is the percentage of the government generated revenue derived from the "new taxation"
- how much of an average persons income goes to taxation, lets presume someone earns 2000$
- what do people get in return for the paid tax
- how do for example restaurants maintain their tax book keeping and are there loop holes?

Feel free to add questions and answers to this thread.

Joe

Relevant but not necessarily a duplicate: Salary taxes in Lebanon

BashLogic

rahmu wroteRelevant but not necessarily a duplicate: Salary taxes in Lebanon

Thanks, this is only a partial answer. I am more interested in the functionality, benefit, change in culture and attitude and implementation.

Nabs

@Bashlogic, the answer in details is huge, but I can tell you one simple quick answer: you get absolutely nothing in return for your taxes. I'm not saying this as in like almost nothing, I mean absolutely nothing. Seriously, you get nothing in return whatsoever. The rest, break it down into smaller questions and I'll answer anything you inquire about within the boundaries of the books of Lebanese laws. I can name a few known loop holes, but I'm sure there are dozens of others I haven't heard of.

rolf

This amount of taxes is pretty low.

In Germany, you can expect various taxes (including insurance, and other social services such as unemployment and invalidity payments), for a (well) decent salary of about 3000 euros/month (about $4000 I guess), to amount to between 30 and 40%! (you do the math).

I guess the quality of state services is related to how much taxes people pay, which brings me to...

Nabs wrote@Bashlogic, the answer in details is huge, but I can tell you one simple quick answer: you get absolutely nothing in return for your taxes.

Well, if you don't get caught, paying taxes and not paying taxes is not going to make any difference. Yet, where do you suppose the money used to build road and to fund firefighters (etc.) comes from?

BashLogic

Ok let me rephrase a part of my enquiry,
In the past, the goverment had a karginal income from import taxation.
After the wars an restructuring, a certain model of taxation has been implemented.
In other words, the institution has generated an amount of income from taxation.
About how much is that and is it all counted for?

xerxes

Your question is confusing, may I ask if you need help in a particular case?

Anyways, there are three income tax types:

1. Profit tax
2. Capital
3. Salaries

VAT another type of tax. Customs....
This issue is really huge. Being more specific may help you get some of the information you want.

BashLogic

In europe, an average person lets say earns 2000e/month.
Of that, the employer would pay taxes on behalf of the employee, lets say 400e.
So for that person to get employed would cost 2400e. In addition, the person
Would have to pay progressive based tax. The more you earn the more tax you pay.
In this case lets say the person pays 25% tax in different forms being left with 1500e.

All monetary transactions are taxed. If you buy food, there is tax to pay, if you pay the phone
Bill you pay tax, lets say an average of 25% for all the different sorts. So when you go of to spend
Your 1500e, you end up paying about 300e of that in different tax forms.
So with a salary of 2000e, you get 1500e of which you actually have a purchasing power
Of only 1200e since 300e goes to additional taxation. So with a total employment investment
Of 2500e, you barelly get 50% of that since the rest goes into different form of taxation.

rolf

That's more or less what I was saying. I guess higher standards of living cost more. Nothing is free, as they say.
But then, with the government collecting about 1000e every month from your salary, who do you go to if you have trouble and need help from the state? Good luck finding out...