NSO

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.