The Ministry of Finance (MoF) has issued on the 3rd June 2024 the decision # 644/1 in application of the article 86 of the 2024 Budget Law # 324, that amended the article 45 of the income tax law and its amendments. Exceptionally, the capital gain tax on the disposal of real estate properties is reduced to 1% [instead of 15%] for individuals, NGOs and entities exempted from tax as well as professionals not involved in the trading of real estate properties, until the 31st December 2024 (inclusive).
Author: citylog
NSSF Memo #754
The NSSF Memo #754 dated 24th April 2024 in application of the Decree #13164 dated 5th April 2024, published in the Official Gazette #16 on the 18th April 2024, has defined the 1st April 2024 as the starting date for calculating the NSSF contributions on the following basis:
1) The minimum monthly salary is set at LBP 18,000,000 and the minimum daily workers’ wage at LBP 820,000.
2) The NSSF ceiling for the Sickness & Maternity contributions is set at LBP 90,000,000 (i.e. 5 times the minimum wage).
MoF decision # 303/1
The Ministry of Finance (MoF) has issued on the 4th April 2024 the decision # 303/1 amending the article 4 of the MoF decision # 824/1 dated 18/11/2023. According to this amendment, the interest paid by Lebanese tax payers to non-resident (foreign) lenders are subject to the non-resident tax of 8.5% (i.e. 50% x corporate income tax 17%) starting from the 1st April 2024. The Lebanese taxpayers who are paying such interest to non-resident lenders have to submit a tax declaration on quarterly basis and pay the related tax within 15 days form the end of the quarter.
It is worth noting that the 10% interest tax (Chapter 3) is only applicable on interest paid to local lenders. On the other hand, the interest income resulting from a lending activity (e.g. Lebanese banks) are subject to 17% corporate income tax while the Lebanese borrower doesn’t have to account for any withholding interest tax on these interest tax deductible charges.
NSSF Memo #770
According to NSSF Memo #770 dated 15th October 2024, employers should settle the end of service indemnity (EOSI) adjustment amounts of their employees in cash or by Fresh bank check starting from the 1st November 2024.
MoF decision #1063/1
MoF decision #1063/1 dated 21 October 2024:
Extension of the deadline for the VAT declaration of the 3rd quarter of the year 2024 and the payment of the related tax until the 5th November 2024 (inclusive).
MoF decision #1062/1
MoF decision #1062/1 dated 21 October 2024:
Extension of the deadline for the Non-resident tax declaration of the 3rd quarter of the year 2024 and the payment of the related tax until the 5th November 2024 (inclusive).
MoF notification # 2494/1
The Ministry of Finance (MoF) notification # 2494/1 dated 10th October 2024 (attached a scanned copy) has extended the deadline for the corporate income tax filling of the year 2023 for companies having a special fiscal year closing (i.e. different from the calendar year closing) till the 31st October 2024 (inclusive) similar as for the companies having a calendar year closing.
MoF decision # 1010/1
The Ministry of Finance (MoF) decision # 1010/1 dated 8th October 2024 (attached a scanned copy) in application of the article 22 of the Law #10 (Budget Law of the year 2022) has granted rebates on tax penalties on tax adjustments (whether issued and notified by the MoF or not yet issued) from the 16th November 2022 (publication date of the Budget Law 2022) regardless the date of the infringement and till the 31st December 2024.
According to this MoF decision, the Minister of Finance is granting the taxpayers, subject to tax adjustments or having self-assessed a tax infringement, rebates on tax penalties covering 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. 8th October 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% on issued tax adjustments and by 75% on self-assessed tax infringements,
– Lump sum penalties are reduced by 60% and by 50% on self-assessed tax infringements or for penalties paid without tax adjustment.
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 and by 65% on self-assessed tax infringements.
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. For any tax penalty exceeding LBP 5 billion (equivalent to USD 55,850), the approval of the Council of Ministers is needed for its reduction.
The provisions of this MoF decision are applicable to any payment of taxes and reduced penalties made before the 31st December 2024.
Decree #14012
The Decree #14012 dated 19 September 2024 and published in the Official Gazette #39 dated 26 September 2024 (attached a scanned copy) has amended the Law #44/2008 on the tax procedures to update the penalties on infringements to the Income tax and Value Added Tax (VAT) laws.
MoF the decision #991/1
The MoF has also issued on the same day the decision #991/1 (attached a scanned copy) for a further extension of the deadline for the annual tax on salaries declarations (R5,R6,R7) of the year 2023 and the payment of the related due tax till 31st October 2024.