Decision #145/1 has further extended the deadline for the declaration of the income from foreign movable assets of the fiscal year 2022 according to the article 82 of the Income Tax Law until the 28th March 2024.
Category: Notifications & Regulations
NSSF Law #319
Law #319 dated 22nd December 2023 published in the Official Gazette #53 dated 28 December 2023 (attached a scanned copy) has made major changes to the NSSF law and set a new Retirement and Social protection regime. This Law will only be applicable upon the issuance of the related application decrees. We have attached a memo prepared by the NSSF to answer the Frequently Asked Questions (FAQ) on this new Retirement regime.
NSSF Memo #743
The NSSF Memo #743 dated 21 February 2024 (attached a scanned copy) in application of the Decree #12962 dated 12 February 2024, published in the Official Gazette #7 on the 15th February 2024, has defined the 1st March 2024 as the starting date for the increase in the NSSF ceiling for the Sickness & Maternity contributions to 5 times the minimum wage (i.e. LBP 45,000,000).
Budget Law 2024 (Law #324)
The Budget Law 2024 (Law #324) was published in the Official Gazette appendix #7 dated 15th February 2024 and included some major tax amendments and discounts on penalties as well as a tax amnesty (articles 87 & 88). Here is the English summary of the main tax articles of Chapter 3 of this Budget Law 2024.
Tax Alert: Tax on salaries according to the Budget Law of the year 2024
The Budget Law of the year 2024 was approved by the parliament last Friday 26th January 2024 with several tax amendments including the obligation (set in article 20 of the project of the Budget Law) to compute the salaries paid in foreign currency at the market exchange rate defined by the Central Bank (currently the Sayrafa rate of 89,500 LBP/USD).
These salaries are then subject to the tax on salaries (Chapter II) according to the new tax brackets that have been increased 60 times compared to their level before the financial crisis and the devaluation of the LBP (that was at 1,500 LBP/USD) after applying the adjusted family deductions (please refer to the articles 48 and 50 of the project of the Budget Law attached).
Starting from the 1st of January 2024, the family deductions for tax purposes applied on the deemed or actual profits of taxpayers will be as follows:
• LBP 450,000,000 for any individual taxpayer
+ LBP 225,000,000 for non-working spouse or husband
+ LBP 45,000,000 for each legitimate dependent child (up to 5 children maximum).
Salaries, wages, and pensions are subject to the following amended progressive tax brackets (tax rates unchanged) starting from the 1st of January 2024:
|
Annual net taxable income (in LBP) |
Tax % |
|
From 0 to 360,000,000 |
2% |
|
From 360,000,000 to 900,000,000 |
4% |
|
From 900,000,000 to 1,800,000,000 |
7% |
|
From 1,800,000,000 to 3,600,000,000 |
11% |
|
From 3,600,000,000 to 7,200,000,000 |
15% |
|
From 7,200,000,000 to 13,500,000,000 |
20% |
|
Above 13,500,000,000 |
25% |
(NSSF) notification #740
The National Social Security Fund (NSSF) has issued a public notification #740 dated 1st February 2024 requesting to compute the salaries paid fully or partially in foreign currency at the highest official exchange rate defined by the Central Bank (currently the Sayrafa rate of 89,500 LBP/USD) starting from the 1st February 2024.
We remind you that the Budget Law 2024, that has been voted on last Friday by the Parliament and which will probably be issued next Thursday in the Official Gazette, has requested to compute the salaries paid in foreign currency on the same basis starting from the beginning of the year 2024 (i.e. from 1st January 2024) at the market exchange rate defined by the Central Bank.
We, therefore, advise you to declare the salaries paid fully or partially in foreign currency at the highest official exchange rate defined by the Central Bank starting from the beginning of the year 2024 to align your declarations to the NSSF with those made to the Ministry of Finance.
MoF decision #83/1
Ministry of Finance (MoF) decision #83/1 dated 31st January 2024 (attached a scanned copy) has further extended the deadline for the filling and payment of the Value Added Tax (VAT) declaration of the 4th quarter of the year 2023 until 8th February 2024 inclusive.
(MoF) decision #56/1
The Ministry of Finance (MoF) decision #56/1 dated 19th January 2024 (attached scanned copy) has extended the deadline for the filling and payment of the Value Added Tax (VAT) declaration of the 4th quarter of the year 2023 until 31st January 2024 inclusive.
MOF decision # 921/1
The Ministry of Finance (MoF) has issued on the 29th December 2023 the decision # 921/1 that further extended the deadline for the annual tax on salaries declarations (R5,R6,R7) the year 2022 and the payment of the related due tax (if any) till (R5,R6,R7) FY2022 till 29 February 2024 (inclusive).
Decision # 906/1
Ministry of Finance (MoF) decision # 906/1 dated 21st December 2023 (attached a scanned copy) extending the deadline set in the decision # 724/1 dated 4th October 2023, as below-detailed till the 31st January 2024.