Lebanon

Individual - Significant developments

Last reviewed - 23 July 2020

The Ministry of Finance (MoF) issued the new Budget Law no. 144, dated 31 July 2019, published in the Official Gazette no. 36, dated 31 July 2019, which introduced several amendments to the taxes and exemptions applicable in Lebanon.

In response to the coronavirus (COVID-19) threat, Lebanese Ministry of Finance issued Decision No. 160 dated 8 May 2020 where it suspended the deadlines for all tax obligations (e.g. CIT) to 30 July 2020. Consequently, the Ministry of Finance issued Decision no. 155/1 on 8 July 2020 whereby determining extension of the tax deadlines previously suspended.

The Ministry of Finance (MoF) issued the 2020 Budget Law no.6, dated 5 March 2020 (published in the Official Gazette no.10, dated 5 March 2020). It does not include any changes in the CIT and VAT rates.

A new Decision no. 993/1, dated 21 November 2016, relating to imposing an annual lump sum license fee was introduced. The annual lump sum license fee for individual taxpayers assessed based on real profit is 550,000 Lebanese pounds (LBP), 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 license 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 license fee is considered as a non-deductible expense.

Decision No. 260/1, dated 31 May 2019, states that, as of FY 2021, the annual lump sum fee will be applicable for all taxpayers subject to income tax as per the above.