Homework Assignment

Mr$.$ LUL is a major shareholder and Chairman and General Manager of a Mega retails store under the

name of "LUL Superstores SAL". The Company is located in Lebanon, LUL building, LUL street.

$1-$ The accountant of the company has provided Mr$.$ LUL with company's net result before tax

for the year $2019$ which amounted to LBP $350,500,230.$ How much will LUL Superstores SAL

pay profit tax for the year $2019?$

If LUL Superstores SAL. Shareholders general assembly meeting declared an LBP $150,000,000$

dividend distribution, how much taxes will pay on this dividend distribution?

$3-$ Mr$.$ LUL is planning to recruit a Store Manager. The store manager should be single, and the

proposed gross salary to pay for such a person per month is LBP $2,500,000.$

a$.$ If the transportation allowances per day are LBP $8,000$ and if the store manager will

work only $22$ days during a month how much will the store manager cash in net at

the end of the month?

b$.$ How much will the company pay per year in term of contributions for National

Social Security Fund for the salary earned by this store manager.

N$.$B$.$

$1-$ For payroll tax:

a$.$ Exemptions per year for single individual: LBP $7,500,000.$

b$.$ Annual Tax brackets

From

Tax rate applicable

II$-$ For NSSF contributions:

a$.$ Medical care$/$sickness section: Applicable to maximum monthly amount of LBP $2,500,000$ at $11\%(3\%$

paid by employee and $8\%$ by the company$)$

b$.$ Family allowances section: Applicable to maximum monthly amount of LBP $1,500,000$ at $6\%$ paid fully

by the company

c$.$ End of Service indemnities section: Applicable to full salary amount at $8\mathrm{.}5\%$ paid fully by the company