Scope of Stamp Duty
Fiscal stamp duty is imposed on:
- Instruments, contracts, agreements, and written documents signed within Lebanese territory that create rights in favor of third parties.
- Instruments and written documents signed abroad or at the premises of foreign embassies and consulates accredited in Lebanon when they are used within Lebanese territory.
- Written documents that do not constitute instruments in themselves when they are submitted as written evidence or used in claims or defenses before an administrative or judicial authority.
When Stamp Duty Becomes Due
- Upon creation and signature of the instrument, the duty must be paid within five working days following the date of creation and signature. Sundays, public holidays, and official holidays are not included in calculating the five-day period.
- When contracts are renewed or extended, stamp duty becomes due again unless the law provides otherwise.
- When instruments, contracts, or agreements are renewed, the duty must be paid within five working days following the renewal date.
- When their effect is expressly or implicitly extended, the duty must be paid within five working days following the date on which they would otherwise have expired.
Payment and Collection of Stamp Duty
By Affixing Stamps
When the amount of duty is LBP 200,000 or less.
In Cash
- When the amount of duty exceeds LBP 200,000.
- Amounts paid 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 applying a special mark that replaces physical stamps for institutions authorized to use this method under the Fiscal Stamp Duty Law.
The institution concerned may request authorization to use a marking machine itself, subject to specified conditions under Article 33 and the following articles of the Fiscal Stamp Duty Law.
Persons Liable for the Duty
- The person who signs the document is liable for fiscal stamp duty.
- Persons dealing with the State, public institutions, and municipalities are liable.
- A person who receives an instrument on which stamp duty has not been paid is jointly and severally liable with the issuer for payment of the duty.
- For instruments containing a contingent amount that cannot be determined when the contract is created, the recipient of the funds is liable.
Stamp Duty on Companies
Partnerships
The duty on the deed of incorporation of partnerships, limited liability companies, and industrial and commercial establishments is LBP 750,000.
Capital Companies
The duty on the deed of incorporation of capital companies, including joint-stock companies, is LBP 1,000,000.
Periodic Payment of Stamp Duty
Public Institutions and Municipalities
Payment is made quarterly during the month following each quarter of the calendar year.
Insurance Institutions
Payment is made quarterly within fifteen days of the month following each quarter of the calendar year.
Penalties
- Failure to affix stamps equal to the duty due, or affixing stamps of a lower value, exposes the concerned parties to a penalty equal to five times the amount of duty lost by the Treasury.
- Failure to cancel affixed stamps results in a penalty equal to 50% of the value of the uncancelled stamps.
Objections
Objections must be submitted to the competent tax administration within two months by written petition. The petition must state the reasons for the objection and include copies of the supporting documents; otherwise, the objection is rejected on formal grounds.
The tax administration must decide on the objection within six months from the date on which it is received.
Decisions of the tax administration may be appealed before the Objections Committees within one month from the date of notification of the tax administration's decision; otherwise, the appeal is rejected on formal grounds.