Declaration and Payment of Tax
Taxpayers subject to income tax must declare their activities and pay the due taxes through any private bank or its branches operating in Lebanon, or through any office affiliated with LibanPost or any other company contracted by the Ministry of Finance for this purpose, using the advance payment notice form (P1). The declaration, together with copies of the payment notice, is then sent to the competent financial unit through LibanPost.
Partnerships and their partners must submit the income tax declaration during the period between the first day of January and the last day of March of each year, for the previous fiscal year, except for those following a special fiscal year, who benefit from a period of three months from the end date of their special fiscal year. These companies must also comply with the obligation to submit declarations related to withholding tax, both periodically and annually.
The statement of the partner’s share of profits or losses aims to show the partner’s share in the different profits or losses of the company, each type of profit or loss separately, with an indication of the type of partnership participation in the company. The partner submits this statement with the personal declaration “F1”, and the statement is prepared according to the number of partners.
Capital companies must submit the income tax declaration during the period between the first day of January and the last day of May of each year, for the previous fiscal year, except for those following a special fiscal year, who benefit from a period of five months from the end date of their special fiscal year. These companies must also comply with the obligation to submit declarations related to withholding tax, both periodically and annually.
The tax administration may extend the deadline for submitting declarations for a maximum period of one month. It should be noted that extending the declaration deadline does not mean extending the payment deadline.
In case of delay or failure to declare, the penalty provided for in Article 109 of the Tax Procedures Law is imposed at a rate of 5% of the tax due according to the declaration for each month of delay, provided that it does not exceed the amount of the tax and is not less than:
- LBP 750,000 for joint-stock companies, including joint-stock companies benefiting from exemptions.
- LBP 500,000 for partnerships and limited liability companies, including companies benefiting from exemptions.
- LBP 100,000 for individuals and other taxpayers.
In addition, a late payment penalty of 1% of the due tax is applied, together with the assessment penalty, starting from the expiry of the original payment deadline.
Partnerships use the income tax declaration form “A” and its attached schedules.
Capital companies use the income tax declaration form “C”, whether they are exempt from tax temporarily or permanently, except for banks, financial institutions, insurance and reinsurance companies, and holding companies, each of which has a specific declaration form.
Banks and financial institutions use the income tax declaration for banks and financial institutions “B” and its attached schedules.
Holding companies use the income tax declaration for holding companies “H” and its attached schedules.