A new Law no.64 dated 20 October 2017 (published in the official gazette on 26 October 2017) introduced new tax measures and amended several tax articles to fund the increase in the minimum wages and the cost of living for the public sector.
The Ministry of Finance (MoF) issued the new Budget Law no. 66 dated 3 November 2017 published in the Official Gazette no. 52 dated 7 November 2017, introduced several amendments to the taxes and exemptions applicable in Lebanon.
The Ministry of Labour legislated a Decision no. 224, dated 12 July 2017, giving the right for the insured whose mandatory membership in the in the National Social Security Fund is terminated due to retirement (age 60 to 64) or due to permanent disability, to benefit from the Sickness & Maternity scheme in accordance with the terms and conditions of the insured workers.
The General Director of the National Social Security Fund issued a memorandum no.559 dated 24 July 2017 for the application of System No. 22 relating to the benefits under the Sickness & Maternity scheme for the retired persons stating the following:
Contributions increase effective 16 February 2017:
- The increase in social security contributions paid by the employee for the Sickness & Maternity scheme from 2% to 3% of the earnings with a ceiling of 2,500,000 Lebanese pounds (LBP) (amounting to LBP 75,000 as a maximum per month).
- The increase in social security contributions paid by the employer for the Sickness & Maternity scheme from 7% to 8% of the earnings with a ceiling of LBP 2,500,000 (amounting to LBP200,000 as a maximum per month).
Please refer to the below sections related to each tax measure.
A new Decision no. 993/1, dated 21 November 2016 relating to imposing an annual lump sum licence fee was introduced. The annual lump sum licence fee for individual taxpayers assessed based on real profit is LBP 550,000, for individual taxpayers assessed based on deemed profits is LBP 250,000, and for taxpayers assessed on assumed profits is LBP 50,000. The above mentioned licence fees apply to local head offices, branches, outlets, and to any place in which the taxpayer carries on its activity or receives customers. For income tax purposes, the lump sum licence fee is considered as a non-deductible expense. This Decision will become effective on 1 January 2018.