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.