Author: citylog

The Ministry of Finance (MoF) issued on the 15^th January 2025 the notification # 121/1 (attached a scanned copy) clarifying the previous notification # 3381/1 dated 31^st December 2024 related to the deadlines set for taxpayers to send a request letter to inform the MoF of their will to reevaluate their inventory according to the article 2 of the Law # 330 dated 5^th December 2024 (Reevaluation Law with no tax impact). The deadlines are set as follows:

–          Before the 5^th February 2025 for the reevaluation of the inventory of the fiscal year 2023.

–          Before the 31^st January 2025 for the reevaluation of the inventory of the fiscal year 2024.

This new MoF notification requires from the taxpayers willing to reevaluate their inventory to send the following documents to the MoF before the above mentioned deadlines:

–          Request letter to inform the MoF of their will to reevaluate their inventory.

–          This request letter should include a commitment from the taxpayer to keep all the supporting documents required by the Law #330 for this inventory reevaluation (or in a separate commitment letter).

Important clarification: This notification also specified that for those taxpayers who doesn’t want to reevaluate their inventory as at end of 2022 and have chosen to reevaluate their inventory starting from the year 2024, they will only be able to reevaluate the inventory purchased in 2023. Therefore, it is recommended to reevaluate the inventory in 2023 based on their value as at end of 2022 to be able to reevaluate the old inventory purchased before 31 December 2022 at their market value with no tax impact. This reevaluation is mainly recommended for companies with long life cycle inventory such as real estate properties available for sale or jewelry who should send a request and commitment letter to the MoF before the 5^th February 2025.

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The Ministry of Finance (MoF) has issued on the 15^th January 2025 the decision #65/1 (attached a scanned copy) extending the following tax filing deadlines till the 31^st January 2025:

1)      Tax on salaries declarations of the 1^st, 2^nd, 3^rd and 4^th quarters of the year 2024 and the payment of the related tax.

2)      Non-resident tax declaration of the 2^nd, 3^rd and 4^th quarter of the year 2024 and the payment of the related tax.

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NSSF Memo #1 dated 9^th January 2025 that defines the 2024 annual ceilings for the Sickness & Maternity and the Family allowances contributions as follows:

 –          Sickness & Maternity annual ceiling for the year 2024 = LBP 891,000,000.

–          Family allowances annual ceiling for the year 2024 = LBP 144,000,000.

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The Ministry of Finance (MoF) issued on the 31^st December 2024 the notification # 3381/1 (attached a scanned copy) related to the deadlines set for taxpayers to send a request letter to inform the MoF of their will to reevaluate their inventory according to the article 2 of the Law # 330 dated 5^th December 2024 (Reevaluation Law with no tax impact). The deadlines are set as follows:

–                      Before the 5^th February 2025 for the reevaluation of the inventory of the fiscal year 2023.

–                      Before the 31^st January 2025 for the reevaluation of the inventory of the fiscal year 2024.

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Knowing that the article 36 of the Budget Law of the year 2022 exempted from tax on salaries the termination compensations paid to dismissed or resigned employees during the period from 1^st July 2019 till 30^th September 2022, the period between the 1^st October 2022 and the 14^th February 2024 as well as any payment of severance pay from the 1^st January 2026 are not covered by this tax exemption.

The Ministry of Finance (MoF) has issued on the 24^th December 2024 the decision #1294/1 (attached a scanned copy) extending the following tax filing deadlines (previously extended till end of November 2024 by the MoF decisions #1122/1).

1)      Further extension of the deadline till 15^th January 2025 for the filing and the payment of the related due tax for:

a.       The Tax on salaries declarations of the 1^st, 2^nd and 3^rd quarters of the year 2024.

b.      The Non-resident tax declaration of the 2^nd and 3^rd quarters of the year 2024.

2)      Further extension of the deadline for the Value Added Tax (VAT) declaration of the 3^rd quarter of the year 2024 and the payment of the related tax till 20^th January 2025.

3)      Further extension of the deadline till 31^st January 2025 for the filing and the payment of the related due tax for:

a.       The Corporate Income Tax and the related Ultimate Beneficiary Owner (UBO) declaration of the fiscal year 2023.

b.      The annual declaration forms (including the UBO M18 form) for the year 2023 for taxpayers subject to income tax based on the lump sum regime (deemed profit basis) and institutions who are exempt from income tax (including associations and NGOs) and adopting the cash basis of accounting and the payment of the related tax as well as for submitting the annual non-resident tax (G5 form) due as per article 41 and 42 of the income tax law.

c.       The annual declaration forms (including the UBO M18 form) for the year 2023 for taxpayers subject to tax on a real profit basis (sole proprietorships, partnerships and institutions who are exempted from income tax and adopting the accrual basis of accounting) and the payment of the related tax as well as for submitting the annual non-resident tax (G5 form) due as per article 41 and 42 of the income tax law.

d.      The tax declaration of multiplace taxpayers (R8) of the year 2023.

e.      The annual tax on salaries declarations (R5,R6,R7) of the year 2023.

f.        The deadline for the Tax on Sayrafa profits (article 93 of the 2024 budget law).

g.       The Corporate Income Tax and the related Ultimate Beneficiary Owner (UBO) declaration for the companies that adopted a special fiscal year ending on the 30^th September 2024, on the 31^st October 2024 and the 30^th November 2024.

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