Employee via EoR
You can grant non-qualified stock options (NSO) to local residents working as contractors in Lebanon.
- The grantee will be responsible for all tax payments and declarations so the company won’t legally have anything to do during the entire lifecycle of the stock options.
- There is no specific law or guidance on stock options in Lebanon and it’s not common to offer stock options to contractors.
- It’s likely that taxation should take place at the time of exercise (at a 10% tax rate), and that no tax would apply at the time of sale of the shares, at least currently.
This could change since Lebanon is in the midst of a financial crisis, and the government could for instance try to tax gains made upon sale of foreign assets (such as shares) at some point.
- Granting stock options to contractors could increase the risk of requalification of the relationship into an employment relationship.
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