Dear Sirs,

We are enclosing MOF Notification No. 121 dated 15/12/2024, related to the exceptional revaluation of inventory as per Law No. 330 dated 05/12/2024.

Tax payers wishing to benefit from the exceptional revaluation, must submit a letter to the tax authorities no later than:

• February 5 2025, for the year 2023 inventory
• January 31 2025, for the year 2024 inventory

It is important for taxpayers to adhere to the above dates to avoid losing their right to revaluation.

N.B: You may refer to the notification for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

Kindly find enclosed Law No.330 published on December 5^th 2024 related to the exceptional revaluation of Fixed Assets, Inventory and Foreign Exchange adjustments. Below you will find a brief summary:

Revaluation of Fixed Assets:

• Tax payers subject to real profit can revalue their fixed assets annually (instead of every 5 years) from end of year 2022 until 2026
• Real estate revaluation requires a sworn real estate expert; other fixed assets require a Certified Public Accountant
• Revaluation variances is exempted from tax and can cover losses, increase capital, or be distributed as dividends
• 10% tax on dividends will be applied if distributed within 5 years and dividends distributed after 5 years will be exempt from tax.

Revaluation of Inventory:

• Companies can revalue their inventory annually from 2022 until 2026
• Revaluation variances is exempted from tax and can cover losses, increase capital, or be distributed as dividends
• The inventory should be recorded/revalued at the actual exchange rate in which it was initially purchased
• 10% tax on dividends will be applied if distributed within 5 years and dividends distributed after 5 years will be exempt from tax
• In order to qualify taxpayers must have filed their income tax returns for years 2020, 2021, and 2022

Adjustment of Receivables, Payables, and Cash/Bank Accounts (Accounts No. 4 & 5):

• Companies have the obligation to adjust accounting records from 2022 until 2026 to reflect LBP devaluation using the BDL exchange rate
• Positive and negative differences are excluded from taxable income, except for exchange differences on salaries paid in USD at the legal exchange rate. Which are considered tax deductible expenses.

Remarks:

• Application decrees and decisions will be issued at a later stage
• You may refer to the law for more details

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 328 published on December 05^th 2024, related to the suspension of legal obligations and deadlines from October 8^th 2023 until March 31^st 2025.

N.B: You may refer to the law for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing decisions No. 959 dated 05/09/2024 defining the exchange rates for salaries paid in foreign currencies, salary tax computation, tax brackets and the family allowances that have to be applied.

Below you will find a brief summary for your reference:

For the period from 01/01/2024 until 31/03/2024:

• Salaries paid in cash/fresh USD are converted at 15,000 LBP/USD
• Salaries paid in USD by check or local Bank transfer to LBP:
  • Up to 3,000 USD at 8,000 LBP/USD
  • For the salary amount exceeding 3,000 USD at 1507.50 LBP exchange rate

For the period starting 01/04/2024:

• Salaries paid in cash/fresh USD/ USD by check or local Bank transfer are converted at 89,500 LBP/USD

For tax calculation purposes, the below Annual tax brackets shall be applied for year 2024 only:

• 2% for earnings not exceeding LL 317,250,000
• 4% for earnings between LL 317,250,001 and LL 793,125,000
• 7% for earnings between LL 793,125,001 and LL 1,586,250,000
• 11% for earnings between LL 1,586,250,001 and LL 3,172,500,000
• 15% for earnings between LL 3,172,500,001 and LL 6,345,000,000
• 20% for earnings between and LL 6,345,000,001 and LL 11,896,875,000
• 25% for earnings exceeding LL 11,896,875,001

The below Family deductions shall be applied for year 2024 only:

For the month of January:

• For any individual taxpayer LL 3,125,000 (Annual LL 37,500,000)
• For non-working spouse LL 1,041,667 (Annual LL 12,500,000)
• For each child LL 208,333 (Annual LL 2,500,000)

For the month of February:

• For any individual taxpayer LL 20,312,500 (Annual LL 243,750,000)
• For non-working spouse LL 9,895,833 (Annual LL 118,750,000)
• For each child LL 1,979,167 (Annual LL 23,750,000)

For the months starting March onwards:

• For any individual taxpayer LL 37,500,000 (Annual LL 450,000,000)
• For non-working spouse LL 18,750,000 (Annual LL 225,000,000)
• For each child LL 3,750,000 (Annual LL 45,000,000)

N.B: You may refer to the decision for more details.

Dear Sirs,

We are enclosing Social Security Announcement No. 754 dated 24/04/2024 related to the application of the new minimum wage increase and its reflection on Social Security Sickness and Maternity branchفرع المرض والأمومة  .

Accordingly, the monthly limits would be as follow:

1. From January 1^st 2024 until February 29^th 2024:

• Sickness and Maternity ((فرع المرض والأمومة: 18,000,000 LBP
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary
• Family Allowance التعويضات العائلية)): 12,000,000 LBP

2. Effective March 1^st 2024:

• Sickness and Maternity ((فرع المرض والأمومة: 45,000,000 LBP (five times the minimum wage)
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary
• Family Allowance التعويضات العائلية)): 12,000,000 LBP

3. Effective April 1^st 2024:

• Sickness and Maternity ((فرع المرض والأمومة: 90,000,000 LBP (five times the minimum wage)
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary
• Family Allowance التعويضات العائلية)): 12,000,000 LBP

4. Effective January 1^st 2024: Security Family Benefits (التقديمات العائلية to a maximum of 2,250,000 LBP per month as per below limits:

• Spouse: 600,000 LBP,
• Child: 330,000 LBP (up to a maximum of 5 children)

N.B: You may refer to the decree for more details.

Dear Sirs,

Kindly find enclosed Ministry of Labor Decree # 13225 dated 05/04/2024 published on 18/04/2024 related to schooling allowance for academic year 2023-2024. Below you will find a brief summary:

Schooling Allowance limits:

• Public schools / The Lebanese University: 4,000,000 LBP (maximum of LL 12,000,000)
• Private schools / universities: 12,000,000 LBP (maximum of LL 36,000,000)

Schooling allowance is paid per below conditions:

• Age of student is between 3 and 25
• The student is registered at a regular school
• Female employees can only benefit when she is in charge of her children and she receives family allowance, or if she is married to an employee who does not receive an education allowance
• Employee should be employed for one year before the beginning of the academic year
• If the company is paying a lower allowance, it should pay the employee the difference. Allowance should not be reduced in case higher amounts were paid,
• The schooling allowance mentioned in this decree is not subject to payroll tax or social security contributions and is not included in the end of service indemnity calculation

N.B: You may refer to the decree for more details.

Dear Sirs,

We are enclosing Decree No. 13164 dated 05/04/2024 published on 18/04/2024 related to the new minimum wage.

Below you will find a brief summary for your reference:

• The new minimum wage will be 18,000,000 LBP (Previously 9,000,000 LBP)
• The new minimum wage for daily workers will be 820,000 LBP  (Previously 410,000 LBP) 
• Effective April 1^st 2024

N.B: You may refer to the decrees and memo for more details.

We remain at your disposal should you need further clarifications

Dear Sirs,

We are enclosing Decision No. 302 dated April 2^nd 2024, defining the new exchange rate for salaries paid in foreign currencies to be converted at 89,500 LBP, effective April 1^st 2024 (Q2 2024).

Furthermore, we are still awaiting additional clarifications regarding the proper treatment of Q1 2024 salaries.

In addition, the Minister of Finance has extended the deadline for the submission and settlement of Salary Tax and VAT of Q1 2024 until May 31^st 2024.

N.B: You may refer to the decisions for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 12966 dated 15/02/2024 regarding the modification of the daily transportation for private sector employees.

The new daily transportation expenses will be 450,000 LBP instead of 250,000 LBP effective February 15^th 2024.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 12962 dated 15/02/2024 related to the increase of Social Security Sickness and Maternity branchفرع المرض والأمومة   to five times the minimum wage.

Accordingly, the monthly limits would be as follow:

1. From January 1^st 2024 until February 29^th 2024:

• Sickness and Maternity ((فرع المرض والأمومة: 18,000,000 LBP
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary
• Family Allowance التعويضات العائلية)): 12,000,000 LBP

2. Effective March 1^st 2024:

• Sickness and Maternity ((فرع المرض والأمومة: 45,000,000 LBP,
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary,
• Family Allowance التعويضات العائلية)): 12,000,000 LBP

3. Effective January 1^st 2024: Security Family Benefits (التقديمات العائلية to a maximum of 2,250,000 LBP per month as per below limits:

• Spouse: 600,000 LBP,
• Child: 330,000 LBP (up to a maximum of 5 children)

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

Kindly find enclosed Law# 324 (Budget Law 2024) published on 15/02/2024, and below you will find a brief summary:

Article #14: VAT

• Obligatory threshold for VAT registration has been increased to 5,000,000,000 LL in turnover (in 1 or 4 consecutive quarters)
• Optional threshold for VAT registration has been increased to 1,000,000,000 LL in turnover in 1 or 4 consecutive quarters
• Taxpayers who exceeded 100,000,000 LL in turnover during the years 2020-2021-2022-2023 but did not exceed the new 5,000,000,000 LL threshold are exempted from registration. Taxpayers who registered during the mentioned years but did not exceed the 5,000,000,000 LL threshold have the right to deregister
• Obligatory registration for importers and exporters irrespective of their turnover
• Taxpayers who did not reach the optional registration threshold have the right to register provided they have a contract with the government or any public institution

Article #17: Taxpayers should declare and pay non-resident tax in the same currency as the funds have been paid

Article #18:

• Taxes on salaries should be computed based on the same currency in which the salaries were paid
• In order to calculate the salary tax, salaries should be converted to LBP based on the provisions of Article 35 of Law #10 Budget 2022, and then the tax should be converted to the initial foreign currency in which these salaries were initially paid, based on the exchange rate determined by BDL-Central Bank
• This calculation does not apply to the End of Service Indemnity prior to December 31^st 2023, which should be treated under separate legislation

Article #46: Income tax for industrial, commercial, and non-commercial entities are subject to the following Annual tax rates (The effective date will be clarified by a MOF decision):

• 4% for earnings not exceeding LL 540,000,000
• 7% for earnings between LL 540,000,000 and LL 1,440,000,000
• 12% for earnings between LL 1,440,000,000 and LL 3,240,000,000
• 16% for earnings between LL 3,240,000,000and LL 6,240,000,000
• 21% for earnings between LL 6,240,000,000 and LL 13,500,000,000
• 25% for earnings exceeding LL 13,500,000,000

N.B: SAL, and SARL companies are still subject of 17%.

Article #47: Salaries, wages and pensions are subject to the following Annual tax rates (The effective date will be clarified by a MOF decision):

• 2% for earnings not exceeding LL 360,000,000
• 4% for earnings between LL 360,000,000 and LL 900,000,000
• 7% for earnings between LL 900,000,000 and LL 1,800,000,000
• 11% for earnings between LL 1,800,000,000 and LL 3,600,000,000
• 15% for earnings between LL 3,600,000,000 and LL 7,200,000,000
• 20% for earnings between LL 7,200,000,000 and LL 13,500,000,000
• 25% for earnings exceeding LL 13,500,000,000

Article #48: The family deduction for daily workers has been set at 1,500,000 LL per day irrespective of their family status

Article #49: The family deductions will be as follows (The effective date will be clarified by a MOF decision):

• LL 450,000,000 for any individual taxpayer

• LL 225,000,000 for non-working spouse
• LL 45,000,000 for each child (up to 5 children maximum)

Article #50: Inheritance tax brackets have been increased to amounts ranging between 1,800,000,000 LL and a maximum of LL 21,000,000,000 subject to the same inheritance tax rates.

Article #51:  Amends Built Property Law related to the annual tax brackets (effective year 2024):

• 4% for earnings not exceeding LL 1,200,000,000
• 6% for earnings between LL 1,200,000,000 and LL 2,400,000,000
• 8% for earnings between LL 2,400,000,000 and LL 3,600,000,000
• 11% for earnings between LL 3,600,000,000 and LL 6,000,000,000
• 14% for earnings exceeding LL 6,000,000,000

Article #52: Any tax payer owning a built property generating an annual income exceeding LL 1,200,000,000 should submit a built property declaration before April 1^st of the following year (Effective year 2024)

Article #53: The amount of deduction (تنزيل سكن المالك) became LL 360,000,000 per housing unit occupied by owner of the property. This deduction could be applied up to 2 housing units (effective year 2024)

Article #54: The non-resident tax withheld according to Articles 41 and 42 of the income tax law is amended to 3.4% on goods (20% gain multiplied by 17% tax) and 8.5% on services (50% gain multiplied by 17% tax) (Effective Q2 2024)

Articles # 61 until 66: Some modifications related to Stamp Duty

• Stamp duty can be collected from licensed entities up to 3,000,000,000 LL
• A stamp of 20,000 LL should be placed on receipts, invoices, statement of account…

Articles # 72 until 77: Updated penalties related to declarations and non-payment of taxes

Article #86: On an exceptional basis and until 31/12/2026, the Capital Gain tax on the sale of real estate made by individuals (non-real estate traders) will be reduced to 1% instead of 15%

Article #87: Amnesty on Tax Objections:

• Allowed for an amnesty (تسوية) of taxes (Income Tax & VAT) and which the objection committee (لجنة الاعتراضات) has not yet issued a decision until February 15^th 2024
• The amnesty amount is 50% of the taxes assessed excluding all penalties for the years up till February 15^th 2024
• A letter should be submitted to MOF and settle dues within 3 months from the date of publication of the Law before May 15^th 2024

Article #88: Reduction in penalties

• 85% reduction on violations occurring until November 16^th 2022 subject to settlement before August 15^th 2024
• 90% reduction on violations issued by the Ministry of Finance after November 16^th 2022 subject to settlement before August 15^th 2024
• 90% reduction on violations under self-declaration after November 16^th 2022 subject to settlement before August 15^th 2024
• 85% reduction on dues to public institutions such as Municipalities before August 15^th 2024
• The discounted penalty should not be less than LL 200,000 or $5 for taxes paid in USD

Article #90: Termination compensations paid to dismissed or resigned employees during the period from July 1st, 2019, until December 31st, 2025, are exempted from Salary Tax and are considered as tax-deductible expenses for employers subject to income tax on an actual profit basis

Article #92: The Ministry of Finance will send copies of salary tax declarations to the National Social Security Fund

Article #93:  All profits generated by individuals and companies from the Central Bank Sayrafa platform will be subject to an exceptional tax of 17% if they exceed $15,000

Article #94: Companies that have benefited from the subsidized exchange rate of the Central Bank will be subject to an exceptional tax of 10% on amounts exceeding $10,000

N.B: You may refer to the Law for additional articles and more details.

It is to be noted that several Parliament Members have filed an appeal before the Constitutional Council and till date no decision was taken yet.

Dear Sirs,

We are enclosing Social Security Memo No. 740 dated 01/02/2024, which defines the exchange rate for converting salaries paid in foreign currencies (Currently 89,500 LBP/USD).

The effective date of implementation is February 1^st 2024.

N.B: You may refer to the Memo for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Social Security Instruction Memo 181 dated 17/01/2024 related to transferring companies to inspection when declaring salaries less 20,000,000 LBP per month.

The effective date of implementation is January 1^st 2024.

N.B: You may refer to the Announcement for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 12772 dated 28/12/2023 related to the increase of Social Security Family allowance branch التعويضات العائلية to 12,000,000 LBP per month.

Accordingly, the monthly limits would be as follow:

1. Sickness and Maternity (فرع المرض والأمومة): 18,000,000 LBP,
2. End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary,
3. Family Allowance التعويضات العائلية)): 12,000,000 LBP.

The increase will be applied effective January 1^st 2024.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 12599 dated 30/11/2023 related to the increase of Social Security Family Benefits (التقديمات العائلية)  

 to a maximum of 2,250,000 LBP per month as per below limits:

1. Spouse: 600,000 LBP,
2. Child: 330,000 LBP (up to a maximum of 5 children)

The increase will be applied effective January 1^st 2024. 

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 11928 dated 24/08/2023 related to the increase of Social Security Sickness and Maternity branch فرع المرض والأمومة   to a maximum of 216,000,000 LBP (18,000,000 LBP per month).

Accordingly, the monthly limits would be as follow:

1. Sickness and Maternity ((فرع المرض والأمومة: 18,000,000 LBP,
2. End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary,
3. Family Allowance التعويضات العائلية)): 2,825,000 LBP

The increase will be applied effective September 1^st 2023.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

This is to inform you that Libanpost is now accepting the declarations of Stamp Duty on Invoices, Receipts...

Accordingly, Tax payers should declare and pay within 15 days from the end of each month the 20,000 LBP fixed Stamp Duty Tax on each document through:

• G20: Declaration form
• S17 Tax payment form

N.B: You may refer to the Announcement for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 11230 dated 18/04/2023 and published on 27/04/2023 related to VAT applicable conversation rates effective 27/04/2023.

Below you will find a brief summary for your reference:

• For imports VAT will be calculated at the rate of BDL's Sayrafa platform,
• A trader who sells products or services to another trader (Business to Business) will apply the rate of BDL's Sayrafa platform
• A trader who sells products or services to an end customer (Business to Consumer or retail) will apply the rate of actual / parallel market
• If a trader collects VAT on the actual / parallel market rate, accordingly the declaration and VAT payment should be done at the actual collected amount

N.B: You may refer to the decree for more details

We remain at your disposal should you need further clarifications.

Dear Sirs,

Kindly find enclosed Ministry of Labor Decree # 11228 dated 18/04/2023 published on 26/04/2023 related to schooling allowance for academic year 2022-2023. Below you will find a brief summary:

Schooling Allowance limits:

• Public schools / The Lebanese University: 3,000,000 LBP (maximum of LL 9,000,000)
• Private schools / universities: 6,000,000 LBP (maximum of LL 18,000,000)

Schooling allowance is paid per below conditions:

• Age of student is between 3 and 25
• The student is registered at a regular school
• Female employees can only benefit when she is in charge of her children and she receives family allowance, or if she is married to an employee who does not receive an education allowance
• Employee should be employed for one year before the beginning of the academic year
• If the company is paying a lower allowance, it should pay the employee the difference. Allowance should not be reduced in case higher amounts were paid,
• The schooling allowance mentioned in this decree is not subject to payroll tax or social security contributions and is not included in the end of service indemnity calculation

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decrees No. 11224 and 11226 dated 18/4/2023 published on 26/04/2023 related to the new minimum wage and daily transportation.

Below you will find a brief summary for your reference:

• Effective April 26th 2023
• The monthly salary will increase by 4,500,000 LBP and accordingly the new minimum wage will be 9,000,000 LBP.
• The new minimum wage for daily workers will be 410,000 LBP  
• The new daily transportation expenses will be 250,000 LBP

N.B: You may refer to the decrees and memo for more details.

We remain at your disposal should you need further clarifications

Dear Sirs,

Kindly find enclosed MOF Decision No. 70 dated 30/01/2023, related to the implementation of Article 29 of Budget Law 2022.

Below you will find a brief summary for your reference:

• Tax payers should declare and pay within 15 days from the end of each quarter related Non-resident tax, when dealing with non-registered individuals or companies  either based inside or outside Lebanon,
• Applicable tax is 2.25% on Goods and 7.5% on Services,
• Minister of Finance has issued new quarterly and annual forms to be completed including all contact details of non-registered tax payers,
• Effective date of implementation Q4 2022.

Accordingly, we advise you only to deal with registered tax payers.

N.B: You may refer to the decision for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

Kindly find enclosed budget Law# 10 dated published on 15/11/2022, and below you will find a brief summary:

Article #21: Amnesty on Tax Objections:

• Allowed for an amnesty (تسوية) of taxes (Income Tax & VAT) and which the objection committee (لجنة الاعتراضات) has not yet issued a decision until 31/3/2023
• The amnesty amount is 50% of the taxes assessed excluding all penalties for the years up till 2020
• A letter should be submitted to MOF and settle dues within 3 months from the date of publication of the Law

Article #22: Reduced penalties if paid within 6 months from the date of publication of the Law:

• 100% reduction on the violations occurred between October 18 2019 and till November 15 2022
• 90% for violations occurred before October 18 2019
• The discounted Penalty should not be less than LL 200,000 Reduced penalties exceeding LL 5 billion required the approval of the Council of Ministers

Article #23: Profit generated from the export of Lebanese manufactured products by industrial companies will benefit from 50% tax reduction on their export profits:

• If the earnings from export are transferred back to banks operating in Lebanon and reinvested in Lebanon or used in total for the purpose of its industrial activity in Lebanon
• The tax reduction will be raised to 75% for five years starting from the year of the publication of this Law

Article #24: The Tax losses related to year 2020 may be carried forward for an additional year

Article #25: Startup companies established within 5 years shall benefit from a total income tax exemption for a period of 5 years on condition that at least 80% of their employees are Lebanese.

Article #26: Industrial and commercial companies established after November 15^th 2022 and before December 31^st 2024 and operating in regions that the Government wishes to develop will benefit from:

• total income tax exemption for a period of 7 years from the date of its actual activity
• Total exemption of construction fees
• 50% discount on the registration and annual vehicles fees
• On condition that their invested capital should be at least 1,000,000 fresh USD and that they employ at least 50 Lebanese representing 60% of their total employees

Article #27: The amounts of family deductions will be as follows (Effective January 1^st 2022):

• LL 37,500,000 for any individual taxpayer
• LL 12,500,000 for non-working spouse
• LL 2,500,000 for each child (up to 5 children maximum)

Article #28: Income tax for industrial, commercial, and non-commercial entities are subject to the following Annual tax rates (Effective January 1^st 2022):

• 4% for earnings not exceeding LL 27,000,000
• 7% for earnings between LL 27,000,000 and LL 72,000,000
• 12% for earnings between LL 72,000,000 and LL 162,000,000
• 16% for earnings between LL 162,000,000 and LL 312,000,000
• 21% for earnings between LL 312,000,000 and LL 675,000,000
• 25% for earnings exceeding LL 675,000,000

N.B: SAL, and SARL companies are still subject of 17%.

Article #29: The Non-Resident tax (2.25% on Goods and 7.5% on Services), calculated and withheld according to the articles 41 & 42 of the income tax law, should be declared and paid quarterly within 15 days from the end of the quarter.

Article #30: Exceptional revaluation of fixed assets:

• Individuals and entities who are required to maintain accounting records, can reevaluate their fixed assets before 31/12/2022,

• The revaluation gain is subject to 5% tax.
• Individuals and entities mentioned under Paragraph C of Article 13 of Law No. 64/2017, can reevaluate their real estate properties before 31/12/2022
• The revaluation gain is subject to 3% tax.

Article #31: The gross income should include the total of salaries, wages, allowances, compensations, awards, gratuities, cash and in-kind benefits. If the salary and benefits were reduced due to legal justified reason or due to a reduction in the working hours, taxes should be computed and paid on the reduced amount.

Article #32:  Re-Exemption of retirement pensions from being subject to Employee Income tax.

Article #33: Salaries, wages and pensions are subject to the following Annual tax rates (Effective January 1^st 2022):

• 2% for earnings not exceeding LL 18,000,000
• 4% for earnings between LL 18,000,000 and LL 45,000,000
• 7% for earnings between LL 45,000,000 and LL 90,000,000
• 11% for earnings between LL 90,000,000 and LL 180,000,000
• 15% for earnings between LL 180,000,000 and LL 360,000,000
• 20% for earnings between LL 360,000,000 and LL 675,000,000
• 25% for earnings exceeding LL 675,000,000

Article #34: The family deduction for daily workers has been set at 125,000 LL per day irrespective of their family status

Article #35: Salary Tax should be computed on the basis of the actual/real value in which these salaries were paid.  

MOF decision #687/1 dated 23/11/2022 has defined the effective value of foreign currencies as follows:

• Salaries paid in cash/fresh USD are converted to LL at the Sayrafa exchange rate
• Salaries paid in USD by check or local transfer are converted to LL at the BDL Circular 151 rate (Currently 8,000 LL).
• Salaries paid in other foreign currencies are first converted to USD and then to LL based on the above

Article #36: Termination compensations paid to dismissed or resigned employees during the period from July 1^st 2019 to September 30^th 2022 are exempted from Salary Tax and are considered as tax deductible expenses to the employers whom are subject to income tax actual profit basis.

Article #37: Social assistance paid in cash or in kind to employees during the year 2022 are exempted from Social Security contributions and are considered as tax deductible expenses to the employers subject to income tax on profits.

Article #38: Salaries of employees who have been permanently disabled as a result of the Beirut port explosion are exempted from tax on salaries

Article #39: The Capital gain realized by individuals from the transfer of their shares in the joint-stock companies (SAL) will be subject to a tax equal to the transfer and registration fees on real estate properties:

• Companies whose sole or main object is to own real estate (عقارات)
• Companies whose main activity is trading real estate properties ((تجارة العقارات or real estate development (التطوير العقاري)
• Companies with real estate properties exceeding 50% of their total fixed assets
• 50% discount on the tax due is applied if the transfer of shares is concluded between shareholders or with their direct relatives (lineal ancestors or descendants)
• The capital gain generated by individuals in other joint-stock companies (SAL) is exempted from this tax.
• Any shareholder is allowed to do an exceptional revaluation of his shares for one time only before the 30 June 2023 to be performed by a certified public accountant. The revaluation variance will be subject to a 1% tax
• The seller has the obligation to declare the transfer of shares transaction and pay the related taxes within a period of two months from the transfer date according to new declaration forms to be prepared by the MOF
• Both the seller and the buyer are jointly liable to pay the taxes resulting from this transaction

Article #41: Holding companies will be subject to an annual tax lump sum of LL 50,000,000 effective year 2022.  

Article #42: Offshore companies will be subject to an annual tax lump sum of LL 50,000,000 effective year 2022. 

Article #46: The payment of the stamp duty can be made by the following way:

• By attaching the stamp on the contract if the stamp value does not exceed LL 500,000 (for contract values of less than LL 125,000,000 million)
•  By stamp printing machines for authorized taxpayers if the stamp value does not exceed LL 500,000
• By cash or banker’s check at the notary public or the MOF if the amount of the stamp exceeds LL 500,000
• By other payment forms (e-stamp) to be defined by the MOF

Article #49:

• Taxpayers who have the obligation to issue invoices, receipts, debit and credit notes should settle the related fixed stamp duty on a monthly basis
• Submit an electronic declaration within 15 days from the end of the month
• Effective January 1^st 2023

Article #50: Entities and companies that are newly incorporated or for which their lifetime has been extended in the commercial or civil register are exempted from paying the fixed and proportionate stamp duty for a period of 3 years

Article #51: Companies and entities are exempted from delay stamp duty penalties due to the non-renewal of their duration subject to settlement before December 31^st 2022.

Article #52: The fixed stamp duty on invoices and receipts is LL 1,000 (Previously LL 250).

Article #56: Amended Inheritance Tax exemptions:

• LL 600,000,000 for children, spouse and partner
• LL 240,000,000 for grandparents and siblings
• LL 120,000,000 for the rest of the heirs

Additional exemptions are added to the exemptions of the children:

• LL 360,000,000 when the child has a permanent disability that prevents him from working.
• LL 24,000,000 for each year the child is under 18 years.
• LL 240,000,000 for each child who has a dependent spouse and LL 120,000,000 for each child under 18 years
• Total exemptions should not exceed LL 600,000,000

Article #59: Inheritance tax brackets have been increased to amounts ranging between 90,000,000 LL and a maximum of LL 1,050,000,000 subject to the same inheritance tax rates

Article #62: Amends Built Property Law (starting year 2022), the amount of deduction  (تنزيل سكن المالك)became LL 40,000,000 per housing unit occupied by owner of the property. This deduction could be applied up to 2 housing units.

Article #63:  Amends Built Property Law related to the annual tax brackets (Starting 2018):

• 4% for earnings not exceeding LL 120,000,000
• 6% for earnings between LL 120,000,000 and LL 240,000,000
• 8% for earnings between LL 240,000,000 and LL 360,000,000
• 11% for earnings between LL 360,000,000 and LL 600,000,000
• 14% for earnings exceeding LL 600,000,000

Article #83: Commercial entities and individuals who stopped their activity due to the Beirut port explosion can benefit from a full exemption on their income tax for the years 2021, 2022 and 2023 in case they resumed their activity.

Article #84: Merging companies can benefit from a full income tax exemption for 3 years starting from the date of the merger subject to specific conditions.

Article #92: Disposals of real estate rights via sale are subject to 3% fee for Lebanese citizens and 5% fees for foreigners of the right or real estate value.

Article #102:  Taxpayers obliged to issue invoices or similar documents must submit electronically the following to MOF within 15 days from the end of each quarter:

• A statement that includes the invoices numbers, dates, and values, and the tax value, in addition to the customer’s name and MOF tax number, excluding individual end consumers with respect to their names and tax numbers.
• ‐A statement of the invoices and similar documents obtained from the suppliers, including the date of their issuance, their values and the tax value (if any), in addition to the supplier’s name and tax number.

MOF may require from certain categories of taxpayers to issue invoices or similar documents electronically.

Article #105: Extension of tax objection deadline SIX additional months to submit objections in front of the tax department or objection committees for tax assessments. 30% should be paid before submitting the objection.

Article #102: Extended for three years the application of Article #53 of Budget Law 2019 related to the execution of POAs and sale contracts at the real estate registrar…

Article #117:

• 85% Reductions on penalties related to the State, Municipalities, Municipal Unions, Public Institutions or other public entities
• The discount shall not apply on penalties governed by special laws, penalties related to public marine properties, construction violation and penalties due to the National Social Security Fund (NSSF) 
• Settlement before the March 30th 2023

N.B: You may refer to the Law for additional articles and more details.

It is to be noted that several Parliament Members have filed an appeal before the Constitutional Council and till date no decision was taken yet.

Dear Sirs,

We are enclosing Social Security Memo No. 694 dated 25/10/2022 related to the application of the monthly wage increase applied by MOL Decree No.10598/2022.

Below you will find a brief summary for your reference:

• Effective October 1st 2022
• The monthly salary will increase by 600,000 LBP and accordingly the new minimum wage will be 2,600,000 LBP.
• The increase will be subject to Social Security Contributions,
• The new ceiling for Sickness and Maternity (فرع المرض والأمومة ) will be 5,600,000 LBP instead of 5,000,000 LBP,
• End of Service Indemnityتعويضات نهاية الخدمة) ) will be based on total monthly salary,
• The new ceiling Family Allowance التعويضات العائلية)  ) will be 3,425,000 LBP instead of 2,825,000 LBP

N.B: You may refer to the memo and decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 9849 dated 18/08/2022 regarding the modification of the daily transportation for private sector employees.

The new daily transportation expenses will be 95,000 LBP instead of 65,000 LBP effective August 18^th 2022.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree No. 9415 dated 23/06/2022 related to the increase of Social Security Sickness and Maternity branch فرع المرض والأمومة  to a maximum of 5,000,000 LBP per month.

Accordingly the monthly limits would be as follow:

• Sickness and Maternity ((فرع المرض والأمومة: 5,000,000 LBP,
• End of Service Indemnityتعويضات نهاية الخدمة) ): based on total monthly salary,
• Family Allowance التعويضات العائلية)): 2,825,000 LBP

The increase will be applied effective July 1^st 2022.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Social Security Memo No. 686 dated 6/6/2022 relate to the application of the high cost-of-living allowance added by Decree No. 9129/2022.

Below you will find a brief summary for your reference:

• Effective April 1st 2022
• The 1,325,000 LBP increase to be applied on wages which does not exceed 4,000,000 LBP and will be subject to Social Security Contributions,
• The new ceiling for Medical Allowance will be 3,825,000 LBP instead of 2,500,000 LBP,
• The new ceiling for Family Allowance will be 2,825,000 LBP instead of 1,500,000 LBP

N.B: You may refer to the memo for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

Kindly find enclosed Ministry of Labor Decree # 8738 dated 28/01/2022 published on 03/02/2022 related to schooling allowance for academic year 2021-2022. Below you will find a brief summary:

Schooling Allowance limits:

• Public schools / The Lebanese University: 1,000,000 LBP
• Private schools /  universities: 2,000,000 LBP

Schooling allowance is paid per below conditions:

• Age of student is between 3 and 25,
• The student is registered at a regular school
• Employee should be employed for one year before the beginning of the academic year
• Schooling allowance can be granted to three children, for a maximum of LL 4,000,000,
• If the company is paying a lower allowance it should pay the employee the difference. Allowance should not be reduced in case higher amounts were paid,
• The schooling allowance mentioned in this decree is not subject to payroll tax or social security contributions and is not included in the end of service indemnity calculation.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Social Security Instruction Number 3508 dated 06/12/2021 related to transferring companies to inspection when declaring salaries for Lebanese workers less 1,100,000 LBP per month.

N.B: You may refer to the Instruction for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing Decree#8318 dated 8/9/2021 regarding the modification of the daily transportation for private sector employees.

The new daily transportation expenses will be 24,000 LBP instead of 8,000 LBP effective October 1^st 2021.

N.B: You may refer to the decree for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing MOF Notification Number 455 dated 26/07/2021, and Committee of Legislation Consultation Number 179/2021 related to the calculation of Salary Tax, and Social Security Contributions on salaries paid in foreign currencies.

Below you will find a brief summary for your reference:

As per Ministry of Finance Salary Tax should be calculated, and deducted as per the actual exchange rate of the USD, for example:

• At a rate of 3,900 USD when paid by Cheque or Bank Transfer,
• At the rate of the Unofficial or Parallel market when paid by Fresh USD.

As per Social Security Consultation the official rate 1507.5 LBP determined by BDL is the only exchange rate to be used and not any other rate.

N.B: You may refer to the Announcement and Consultation for more details.

We remain at your disposal should you need further clarifications.

Dear Sirs,

We are enclosing MOF Decision Number 267 dated 22/04/2021, related to the exemption of Transfer of Shares and Bonds from Stamp Duty tax.

Below you will find a brief summary for your reference:

• Certificate of Deposits, Bonds, Transfer of Shares, Lebanese treasury bonds are exempted from Stamp Duty,
• To benefit from such exemption the transaction should be done through the Financial Market,
• If the agreement includes future obligations or linked to a loan settlement it will not be exempted from Stamp Duty Tax.

N.B: You may refer to the decision for more details.

We remain at your disposal should you need further clarifications.