How do you integrate offshore jurisdictions into your client tax planning?

Offshore companies are quite attractive options in Lebanon being only subject to an annual flat corporate tax (~USD670) and exempt from both dividends distribution tax and capital gains tax (10%), with additional exemptions from inheritance tax, payroll tax and social security contributions for employees who are working outside Lebanon, or not permanently residing in its territory.

Consequently, for Lebanese clients doing business in Leb- anon and abroad, we have recommended setting up two companies registered and based in Lebanon to reduce the corporate tax impact and benefit from the above men- tioned offshore company tax regimes.

The scrutiny on offshore entities is likely to be more of an issue in the near future due to CRS and AML regulations, since banks are being more vigilant when it comes to for- eigners using Lebanese offshore solutions.