Penalties
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Any person who fails to notify the tax administration of temporary or permanent cessation of business within the legal deadlines
is subject to a flat penalty of:
- LBP 2,000,000 for joint-stock companies, including joint-stock companies benefiting from exemptions.
- LBP 1,000,000 for partnerships, limited liability companies, and institutions exempt from tax.
- LBP 300,000 for individuals and other taxpayers.
In addition, a late payment penalty of 1% of the flat assessment penalty shall apply for each month of delay after two months have passed from the date of notification.
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A taxpayer required to submit an annual non-operation declaration shall, in case of delay or failure to submit this declaration,
be subject to the penalty provided for in Article 109 of the Tax Procedures Law: 5% for each month of delay,
provided that the penalty does not exceed 100% of the tax amount and is not less than:
- LBP 750,000, seven hundred and fifty thousand Lebanese pounds, for joint-stock companies.
- LBP 500,000, five hundred thousand Lebanese pounds, for partnerships, limited liability companies, and institutions exempt from tax.
- LBP 100,000, one hundred thousand Lebanese pounds, for individuals and other taxpayers.
In addition, a late payment penalty of 1% of the assessment penalty shall apply for each month of delay after two months have passed from the date of notification.