Lebanon

Individual - Significant developments

Last reviewed - 17 December 2021

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, the Lebanese MoF issued Decision No. 185, dated 19 August 2020, where it suspended the deadlines for all tax obligations to 31 December 2020 followed by a new Memo No. 1000 on 9 December 2020 where it extended the deadlines for all tax obligations previously suspended.   

The government issued Law No. 199 on 29 December 2020 extending certain deadlines and granting some tax exemptions.

Further to the issuance of Law no.199, the Ministry of Finance issued several decisions to further extend the deadlines for tax filing obligations (e.g. extension of the filing and payment deadline of Q3 2021 Payroll Tax declaration to 1 November 2021).

The 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 personal income tax (PIT) and value-added tax (VAT) rates.

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.

As per Decree No. 8143 dated 26 August 2021 published in the official gazette on 30 August 2021, the employees’ transportation allowance in the public sector is amended and increased from LBP 8,000 for each working day to LBP 24,000 for each working day. The Decree is effective from 1 September 2021. 

In addition, as per Decree No. 8318 dated 8 September 2021 published in the official gazette on 16 September 2021, the employees’ transportation allowance in the private sector is amended and increased as well from LBP 8,000 for each working day to LBP 24,000 for each working day. The Decree is effective from 1 October 2021.