MoF decision #402-1 dated 17 April 2025-Further extension of Q4 2024 VAT declaration till 20th May 2025

MoF decision # 293/1 dated 20 July 2020

We hereby remind you of the requirements set in the Ministry of Finance (MoF) decision # 293/1 dated 20 July 2020 in relation with the payment by your companies of services to residents of contracting states that Lebanon has a Double Tax Treaty with such as France, Cyprus or the UAE (list of the Double Tax Treaties signed by Lebanon attached).  

According to this MoF decision and in order to benefit from the provisions of Double Tax Treaties (DTT)Lebanese taxpayers contracting with parties residing in a country which Lebanon has concluded a DTT with, should submit to the tax authorities the following documents:

1)      A tax residency certificate from the other contracting state’s tax authorities for the contracting party;

2)      Commitment letter from the other party that it does not carry-on business in Lebanon in which the revenues arise, through a permanent establishment situated therein.

3)      A separate letter which should include the other party’s name and its country of residency, as well as the nature of relationship between the Company and this other party. Also, the letter should include the tax treatment the company is undergoing with respect to the amounts paid to that foreign party. The above-mentioned documents should be attached to the letter which should be sent to the tax authorities within 1 month from the date of establishing the relationship.

In case of subsequent change to the information presented above, another letter should be sent to the tax authorities to inform them about these changes before 31 January of the next year.

The tax treatment of contractual obligations with parties residing in a country which Lebanon has concluded a DTT may defer from a country to another according to the provisions of the DTT.

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MoF decision #402-1 dated 17 April 2025-Further extension of Q4 2024 VAT declaration till 20th May 2025

NSSF Law #319

Law #319 dated 22nd December 2023 published in the Official Gazette #53 dated 28 December 2023 (attached a scanned copy) has made major changes to the NSSF law and set a new Retirement and Social protection regime. This Law will only be applicable upon the issuance of the related application decrees. We have attached a memo prepared by the NSSF to answer the Frequently Asked Questions (FAQ) on this new Retirement regime.
MoF decision #402-1 dated 17 April 2025-Further extension of Q4 2024 VAT declaration till 20th May 2025

موازنة 2024 بتعديلاتها ونتائجها وما بعدها من إصلاحات مرتقبة

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Rappel des principaux concepts et principes du budget de l’État, suivis par un aperçu synthétique des mesures adoptées par le budget 2024, pour conclure par des propositions de réforme.

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MoF decision #402-1 dated 17 April 2025-Further extension of Q4 2024 VAT declaration till 20th May 2025

Tax Reforms for Lebanon

In the wake of Lebanon’s economic challenges, implementing effective tax reforms has emerged as a critical component of any recovery plan. Prioritizing fiscal objectives is essential, with a focus on bringing down the current account deficit and achieving debt and financial sustainability. However, any tax reform must be approached cautiously to avoid undermining efforts to revive the national economy and finance sustainable development.

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MoF decision #402-1 dated 17 April 2025-Further extension of Q4 2024 VAT declaration till 20th May 2025

NSSF Memo #743

The NSSF Memo #743 dated 21 February 2024 (attached a scanned copy) in application of the Decree #12962 dated 12 February 2024, published in the Official Gazette #7 on the 15th February 2024, has defined the 1st March 2024 as the starting date for the increase in the NSSF ceiling for the Sickness & Maternity contributions to 5 times the minimum wage (i.e. LBP 45,000,000).

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