Penalties
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Any taxpayer who fails to notify the tax administration of the temporary or final cessation of business
within the legal deadline is subject to a fixed penalty amounting to:
- 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% is applied on the fixed assessment penalty 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-practice of business declaration is subject, in case of delay
or failure to submit this declaration, 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% is applied on the assessment penalty for each month of delay, after two months have passed from the date of notification.