Tax Alert: MoF decision #309/1 dated 6 May 2021: Reduction of tax penalties until 30 June 2021

Tax Alert: MoF decision #309/1 dated 6 May 2021: Reduction of tax penalties until 30 June 2021

Dear All,

Please be informed that the Ministry of Finance (MoF) decision #309/1 dated 6^th May 2021 (attached a scanned copy) has granted reductions on the tax penalties for any tax infringement incurred from the 1^st August 2019 till the date of this decision (i.e. 6^th May 2021 inclusive) based on the Laws # 199/2020 and 212/2021.

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 from the 1^st August 2019 till the 6^th May 2021.

The delay tax declaration penalties are reduced for all tax infringements incurred from the 1^st August 2019 till the 6^th May 2021 as follows:

-          Variable penalties are reduced by 85%,

-          Lump sum penalties are reduced by 60%.

 

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 this MoF decision, the tax penalties rebates are applicable to all tax adjustments settled before the 30^th June 2021.

 We remain at your disposal should you need any further clarification or information on this subject.

 Best regards,

DAHER & PARTNERS