Lebanon

In Lebanon, cryptocurrencies are legally classified as intangible assets, based on a 2018 circular from the Ministry of Finance. While not considered legal tender or currency, crypto is legal, meaning individual ownership and peer-to-peer trading are permitted. However, there is no specific regulatory framework for crypto. Financial institutions are prohibited from dealing with cryptocurrencies by the Banque du Liban (2013) and the Capital Markets Authority (2018), creating a legal gray area where general laws apply to individuals. The Ministry of Finance oversees tax administration related to cryptocurrency, with taxation governed by general tax laws such as the Income Tax Law (Law No. 144/2001). For individual crypto investors, profits derived from the sale or exchange of cryptocurrency are subject to a flat 15% capital gains tax. This rate applies universally, with no distinction between short-term and long-term holdings, and no specific exemptions or thresholds are mentioned. If cryptocurrency is received as income, for example, by businesses accepting it for goods or services, it is subject to income tax at a 15% rate. Corporate entities dealing with crypto also face a 15% income tax. Taxpayers are required to report their cryptocurrency gains and losses in accordance with general tax reporting obligations. Regarding specific crypto activities, mining rewards are taxed as income at 15%. Both converting crypto to fiat currency and exchanging one cryptocurrency for another are considered taxable events, triggering the 15% capital gains tax on any profits realized. There is currently no official guidance or specific tax treatment for staking, decentralized finance (DeFi) activities, or non-fungible tokens (NFTs). The treatment of Value Added Tax (VAT) on crypto transactions is also not specified in current regulations.