Tax Alert: MoF information on new tax obligations deadlines based on the Law #160

Tax Alert: MoF information on new tax obligations deadlines based on the Law #160

Dear All,

Please be informed that the Ministry of Finance (MoF) issued an information notice on the 8^th July 2020 (attached a soft copy) defining the new deadlines for the tax obligations after the 30^th July 2020 in application of the articles 1 and 2 of the Law #160 dated 8^th May 2020 (suspending the tax obligations between the 18^th October 2019 and the 30^th July 2020 without any delay tax penalty).

According to this MoF information notice, the tax obligations that didn’t reach their deadline on the 18^th October 2019 will still have their remaining period running after the 30^th July 2020 (e.g. the VAT declaration of the 3^rd quarter of the year 2019 had an initial deadline on the 20^th October 2019 with 3 remaining days from the 18^th October 2019, thus, the new deadline has been set on the 3^rd August 2020 which is 3 days after the 30^th July 2020, considering that the 2^nd August 2020 is a Sunday).

As for the tax obligations that had their deadline set during the suspension period (i.e. from the 18^th October 2019 till the 30^th July 2020), their new deadline will start running from the 31^st July 2020 with the same periods defined in the tax laws and regulations (i.e. the Partnerships & Establishments annual income tax declarations had to be filled 3 months after the closing date of their reporting period that was initially the 31^st March 2020 for the income tax declarations of the fiscal year 2019. Thus, the new deadline for the filling of their 2019 annual income tax declaration is set on the 31^st October 2020).

The same rule applies to the fiscal stamp duty that has to be paid within 5 working days from the date of the contract. Thus, the fiscal stamp duty on any contract signed during the suspension period has to be settled before the 6^th August 2020 (i.e. 5 days from the 31^st July 2020, excluding the Sunday).

Also, all the deadlines set in the Article 22 of the Budget Law 2020 that already extended the deadlines of the articles 21, 22, 28, 29, 30 and 32 to 40 of the Budget Law 2019 (i.e. discount on penalties, installment of late payments, extension of the tax objection deadline, real estate registration fees and exceptional revaluation of fixed assets) for 6 months till the 5^th  September 2020, have been further extended till the 1^st February 2021.

This information notice also defines the new deadlines related to the built property tax (declaration of vacancy) and registration of rent contracts at the municipalities.

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

DAHER & PARTNERS