Lebanon

In response to the hyperinflation in the country, the Ministry of Labor (MoL) and the National Social Security Fund (NSSF) issued several decrees and circulars during 2022 and early 2023 to adjust the salaries of employees subject to the Labor Law as well as the family allowance given. 

The 2022 Budget Law no. 10, published in the Official Gazette on 15 November 2022, and the 2024 Budget Law no. 324, published 15 February 2024, both simultaneously introduced several amendments related to taxes, incentives, and exemptions applicable in Lebanon. Law no. 324 specified as well that “employers should withhold payroll tax from employees' wages and remit it to the tax administration in the same currency as the salaries paid”. 

Additionally, the 2022 Budget Law outlined that whenever the statement “taxes and duties are due in United States dollars (USD) or in any other foreign currency” is mentioned, the amount should be deposited/settled in the same currency to the Ministry of Finance’s (MoF's) bank account held at the Central Bank of Lebanon. Consequently, the 2024 Budget Law no. 324 stated that, except for amounts due to the Lebanese State or to public institutions in foreign currencies, as well as taxes and fees on revenues, interests, and proceeds received in foreign currencies (e.g. income subject to movable capital tax), all other taxes, duties, and related penalties that are due in foreign currency to the tax authorities are required to be paid in Lebanese pounds (LBP or LL) based on the actual value set by the Central Bank. 

Moreover, the MoF issued Law no. 330 on 5 December 2024, which addresses the exceptional revaluation of fixed assets and inventory as well as the effect of devaluation of the Lebanese pound on the value of inventory and fixed assets. The Law also outlined the exceptional treatment of the forex exchange from the adjustment of the LBP devaluation effect on receivables, payables, and cash and bank accounts. 

The major tax amendments and exemptions are incorporated in the appropriate summary sections.