The Ministry of Finance (MoF) issued and published the here below Decision N.530/1 dated 14/10/2020 relating to the extension of tax penalties rebated. In fact, the MoF extended the tax penalties rebates set in the previous MoF decision No. 236/1 dated 29/06/2020 (here below) until the 31th December 2020 on any tax infringement incurred from 01/08/2019 till 17/10/2019 (inclusive).
In fact, according to this Decision, the Minister of Finance is granting the taxpayers subject to tax adjustments tax penalties rebates covering all the tax infringements related to income tax, VAT, built property tax, inheritance tax and the indirect taxes and fees that occurred from 01/09/2019 till the 17/10/2019.
The delay tax declaration penalties are reduced for all tax infringements incurred from 01/08/2019 2019 till the 17/10/2019 as follows:
- Variable penalties are reduced by 85%;
- Lump sum penalties are reduced by 60%.
The delay tax payment penalties are reduced for all tax infringements (including those related to the fiscal stamp duty) incurred from the 01/08/2019 till 17/10/2019 (inclusive) by 75%.
It should be noted in this regard that the variable or the lump sum tax penalties for delay declaration or payment cannot be less than LBP 50,000 in any case after reduction.
Thus, according to the new said Decision, the tax penalties rebates are applicable to all tax adjustments settled before the 31/12/2020.