Scope of the Duty
The duty is imposed on:
- Deeds, contracts, agreements and writings drawn up within Lebanese territory and creating rights for others.
- Deeds and writings signed abroad or at foreign embassies and consulates accredited in Lebanon, when used within Lebanese territory.
- Writings that are not considered deeds in themselves when presented as written evidence or as a means of review or defense before an administrative or judicial authority.
Creation of the Right to the Duty
- Upon creation and signature of the deed, the duty must be paid within five working days following the date of creation and signature of the deed. Sundays, official holidays and public holidays are not included in the five-day period.
- Upon renewal or extension of rights, fiscal stamp duty becomes due again unless the law provides otherwise.
- Upon renewal of deeds, contracts and agreements within five working days following the renewal date.
- Upon extension of their effect, expressly or implicitly, within five working days following their expiry date.
Payment and Collection of the Duty
By affixing stamps
If the value of the duty is LBP 200,000 or less.
In cash
- If the value of the duty exceeds LBP 200,000, and for amounts disbursed by the State, public institutions and municipalities.
- Insurance contracts and insurance premiums issued by insurance companies.
- Shares and debt securities issued by joint-stock companies.
Stamping or Marking
Stamping means placing a special mark that replaces physical stamps for institutions authorized to do so pursuant to the provisions of the Fiscal Stamp Duty Law. The concerned institution may request authorization to use the stamping machine under specific conditions, in accordance with Article 33 and following articles of the Fiscal Stamp Duty Law.
Persons Liable for the Duty
- Fiscal stamp duty is due by the person signing the document.
- By the person dealing with the State, public institutions and municipalities.
- By the person receiving a deed for which fiscal stamp duty has not been paid, who becomes jointly and severally liable with the issuer of the deed for payment of the duty.
- By the recipient of the money for deeds that include an amount fully due before extension upon creation of the contract.
Duty on Companies
Partnerships
Upon establishment of partnerships, limited liability companies, and industrial and commercial institutions: LBP 750,000.
Capital Companies
Upon establishment of capital companies: LBP 1,000,000 for joint-stock companies.
Periodic Payment of the Duty
Public Institutions and Municipalities
Quarterly, during the month following each quarter of the civil year.
Insurance Institutions
Quarterly, within fifteen days during the month following each quarter of the civil year.
Penalties
- Failure to affix stamps equal to the due duty, or affixing stamps of a value lower than the due duty, exposes the concerned party to a penalty equal to five times the duty lost by the Treasury.
- A penalty equal to 50% of the value of the falsified stamp is imposed on anyone who removes a transfer from a used adhesive fiscal stamp.
Objections
Objections are submitted within two months before the competent tax administration by written request. The request must include the reasons for the objection and be accompanied by copies of the documents supporting it; otherwise, the objection is rejected in form.
The tax administration has the right to decide on the objection within six months from the date of receipt. Decisions of the tax administration may be appealed before the objection committees within one month from the date of notification of the tax administration decision; otherwise, the appeal is rejected in form.