Author: citylog
(MoF) decision # 722/1
The Ministry of Finance (MoF) decision # 722/1 dated 11th July 2024 (attached a scanned copy) in application of the article 88 of the Law #324 (Budget Law of the year 2024) has granted rebates on tax penalties on tax adjustments issued from the 16th November 2022 (publication date of the Budget Law 2022) regardless the date of the infringement and till 30 September 2024.
According to this MoF decision, the Minister of Finance is granting the taxpayers, subject to tax adjustments, rebates on tax penalties covering all the tax infringements related to income tax, VAT, built property tax, inheritance tax and the indirect taxes and fees for tax adjustments issued from the 16th November 2022 till the date of this decision (i.e. 11th July 2024).
The delay tax declaration penalties are reduced for all tax infringements incurred before the date of this decision with a tax adjustment issued from the 16th November 2022 as follows:
– Variable penalties are reduced by 85%,
– Lump sum penalties are reduced by 60%.
The delay tax payment penalties (including VAT and fiscal stamp duty) are reduced by:
– 75% for all tax infringements incurred before the date of this decision with a tax adjustment issued from the 16th November 2022.
Knowing that the variable or the lump sum tax penalties for delay declaration or payment cannot be less than LBP 200,000 in any case after reduction.
The provisions of this MoF decision are applicable to any payment of taxes and reduced penalties made before the 30th September 2024.
MoF decision #721/1
MoF decision #721/1: Extension of the deadline for the Tax on Salaries (R10) declaration of the 2nd quarter of the year 2024 and the payment of the related tax until the 30th August 2024 (inclusive).
MoF decision #720/1
MoF decision #720/1: Extension of the deadline for the Non-resident tax declaration of the 2nd quarter of the year 2024 and the payment of the related tax until the 30th August 2024 (inclusive).
MoF decision #719/1
MoF decision #719/1: Extension of the deadline for the filing and the payment of the Corporate Income Tax and the related Ultimate Beneficiary Owner (UBO) declaration of the fiscal year 2023 until the 30th August 2024 (inclusive).
MoF decision #692/1 dated 25 June 2024
Further extension of the deadline for the filling of the annual declaration forms (including the UBO M18 form) for the year 2023 for taxpayers subject to tax on lump sum profit basis (sole proprietorships, partnerships and institutions who are exempt 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 until the 25th July 2024 (inclusive).
MoF decision #691/1 dated 25 June 2024
Further extension of the deadline for the filling of 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 exempt 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 until the 25th July 2024 (inclusive).
MoF decision #690/1 dated 25 June 2024
Further extension of the deadline for the VAT declaration of the 1st quarter of the year 2024 and the payment of the related tax until the 10th July 2024 (inclusive).
Constitutional Council decisions # 3/2024 and 4/2024
Following the Constitutional Council decisions # 3/2024 and 4/2024 published in the Official Gazette on the 11th and 18th April 2024 respectively, that suspended the application of certain articles of the 2024 Budget Law #324 and amended others (you will find attached a summary of the suspended and amended articles extracted from the Constitutional Council decision # 3/2024). You can access the updated version of Daher and Partners English summary of the main tax articles of Chapter 3 of this Budget Law 2024.
MOF decision # 645/1
The Ministry of Finance (MoF) has issued on the 4th June 2024 the decision # 645/1 that requires from the companies having previously elected for a special fiscal year with a closing of accounts date that is different from the calendar year to change their closing date to match with the end of a quarter (i.e. March, June or September). The companies affected by this decision will be notified by the MoF to change their closing date within 2 months from their notification or they will lose their special fiscal year option.
Any new request for a special fiscal year different from the calendar year sent to the MoF after the date of this decision will not be accepted if the closing date is different from the end of a quarter.
Companies with a special fiscal year will not be able to benefit from the MoF extensions of tax filing deadlines. However, they have the ability to request from the MoF an extension of deadline with a valid reason within a time frame of not less than 10 days before the initial deadline. If the MoF didn’t answer before the end of the initial deadline, the request will be considered as refused. If the request is accepted, the deadline for submitting the audit report will also be extended accordingly.