MoF decision #1583/1 dated 30 October 2018: Extension of tax penalties rebates until 31 December 2018
October 30, 2018MoF decision #1583/1 dated 30 October 2018: Extension of tax penalties rebates until 31 December 2018
Dear clients,
Please be informed that the Ministry of Finance (MoF) decision #1583/1 dated 30 October 2018 (attached a scanned copy) has extended the tax penalties rebates set in the previous MoF decisions (based on the Law #662 dated 4/2/2005 that allows the Ministry of Finance to issue such decisions) until 31 December 2018 on any tax infringement incurred prior to 30 October 2018 (inclusive).
According to this MoF decision, the Minister of Finance is granting the taxpayers subject to tax adjustments tax penalties rebates covering all the tax infringements related to income tax, VAT, built property tax, inheritance tax and the indirect taxes and fees that occurred until 30 October 2018.
The delay tax declaration penalties are reduced for all tax infringements incurred prior to 30 October 2018 (inclusive) as follows:
- Variable penalties are reduced by 85%,
- Lump sum penalties are reduced by 60%.
The delay tax payment penalties are reduced for all tax infringements (including those related to the fiscal stamp duty) incurred prior to 30 October 2018 (inclusive) by 75%.
Knowing that the variable or the lump sum tax penalties for delay declaration or payment cannot be less than LBP 50,000 in any case after reduction.
Thus, according to the new MoF decision #1583/1 dated 30 October 2018, the tax penalties rebates are applicable to all tax adjustments settled before the 31st December 2018.
We remain at your disposal should you need any further clarification or information on this subject.
Best regards,
Daher and Partners
