Financial Crime World

Taxation Laws and Regulations in Lebanon (2003-2018)

Laws

Lebanon has enacted several laws related to taxation between 2003 and 2018. Here are some key points:

Tax Procedures Law - TPL (Law no. 44, dated 11/11/2008)

  • The law was amended by Law no. 60 dated 10/27/2016.
  • Defines the tax procedures to be followed in Lebanon.

Other Laws

Individuals and Trustee Activities

  • Law no. 74 (dated 10/27/2016): Defines tax obligations for individuals carrying out trustee activities.
  • Law no. 75 (dated 10/27/2016): Abolishes bearer or on-hold shares and promissory notes, requiring shareholding companies to issue nominal shares only.

Corporate Income Tax

  • Law no. 64 (dated 10/20/2017): Increases the corporate income tax rate from 15% to 17%.
  • Law no. 81 (dated 10/10/2018): Regulates electronic transactions and personal data protection.

Offshore Companies

  • Law no. 85 (dated 10/10/2018): Amends certain provisions of Decree Law no. 46/1983 on the status of offshore companies.

Partnerships between Public and Private Sectors

  • Law no. 48 (dated 9/7/2017): Regulates partnerships between public and private sectors in specific industries, such as electricity, telecommunications, and air transport.

Other Laws

Budget Law 2017

  • Article 49 of Law no. 66 (dated 11/3/2017): Allows companies to carry out an exceptional revaluation of fixed assets, with 50% of the value accepted in banks’ tier two capital.
  • Decision of the Ministry of Finance no. 514/1 dated 17/4/2018: Sets terms for application of Article 49.

Decrees

Tax Declaration and Automatic Exchange of Information

  • Implementing decree n° 1022 (dated 7/7/2017): Concerns procedures for tax declaration and automatic exchange of information in line with OECD standards.

Penal Code Amendments

  • Law no. 77 (dated 10/27/2016): Amends the Penal Code to broaden the concept of terrorist financing and operations.
  • Decision of the Ministry of Finance no. 1504/1 dated 12/22/2017: Clarifies application of Article 51 of Law no. 497/2003 as amended by Article 15 of Law no. 64/2017.

Important Notes

  • Bank deposits with the Central Bank (BDL) are not exempt from the 7% tax on interest and income, as clarified in Decision of the Ministry of Finance no. 1504/1 dated 12/22/2017.
  • Article 36 of Law 79 dated 4/18/2018 (Budget law 2018) exempts interbank deposits from the 7% tax.

This summary is based on a review of the text and may not be exhaustive. For more detailed information, please consult the original laws, decrees, and decisions mentioned in the text.