The Budget Law 2026 (Law #40) was published in the Official Gazette appendix #7 dated 10th February 2026 (attached a scanned copy of the Chapter 3 of this Law) and included some major tax amendments. We have prepared our usual English summary of the main tax articles of the Chapter 3 of this Budget Law 2026 that we are sending you attached.
These are the main tax amendments of the Budget Law 2026:
– Tax penalties discounts (Article 15)
– Penalties on delay or failure to declare the Ultimate Beneficial Owner (Article 18)
– Increase in the food allowance granted to employees to LBP 300,000 per day (Article 26)
– Tax deposit on account of 1.5% of the value of import for non-compliant taxpayers (Article 27)
– Cap of USD 30,000 on the acceptable depreciation of passenger vehicles (Article 29)
– Cap of USD 30,000 on the acceptable VAT deductibility of passenger vehicles & VAT on utilities no longer deductible (Article 30)
– Extension of the deadline for the exceptional revaluation of inventory and fixed assets (Law #330) for 3 months from the Budget Law 2026 publication date (Article 40)
– Extension of the 3% fee on imported goods subject to VAT till 31 December 2030 (Article 42)
– VAT quarterly filing deadline changed from 20 days to one month following the end of each quarter (Article 51)
– Amendment of the article 93 of the Budget Law 2024 to increase the threshold of the 17% Sayrafa tax to USD 100,000 and exempt salaries (Article 52)