On 27 August 2026, the Lebanese Ministry of Finance (MoF) issued Decision No. 745/1, implementing Paragraph C of Article 22 of the 2026 Budget Law (Law No. 40). This decision authorizes the settlement of tax liabilities in foreign currencies, marking a significant shift in Lebanon’s tax payment framework amid ongoing currency volatility. The measure applies to all taxpayers subject to taxes administered by the MoF, including corporate income tax, value-added tax (VAT), tax on salaries, built property tax, and fiscal stamp duties. The decision specifies that taxpayers may settle their obligations in designated foreign currencies at the exchange rate published by the Banque du Liban (BDL) on the date of payment. This provision aims to ease the burden on businesses operating in a multi-currency environment and to improve tax collection efficiency. The decision also outlines the procedural requirements for foreign currency payments, including the use of specific bank accounts designated by the MoF and the obligation to reference the relevant tax assessment numbers on each transfer. Effective immediately, the decision supersedes prior instructions mandating payment exclusively in Lebanese pounds. Taxpayers are advised to coordinate with their banks to ensure compliance with the new payment channels and to retain documentation of the exchange rate applied. The MoF has indicated that further clarifications regarding the list of acceptable foreign currencies and the treatment of exchange differences will be issued in subsequent notifications.
Key Takeaways
- Foreign Currency Settlement Authorized: Taxpayers can now discharge their tax debts in foreign currencies (primarily US dollars) at the official BDL exchange rate on the payment date, providing flexibility and reducing exchange rate risk for businesses with foreign currency revenues.
- Procedural Compliance Required: Payments must be made through designated bank accounts with proper referencing of tax assessment identifiers; non-compliance may result in payment rejection, late payment penalties, and interest accrual.
- Broad Applicability Across Tax Types: The decision covers corporate income tax, VAT, tax on salaries, built property tax, and other MoF-administered levies, impacting a wide range of domestic and international businesses operating in Lebanon.
- Immediate Effect and Transitional Relief: The decision takes effect from the date of issuance (27 August 2026) and applies to all outstanding tax liabilities, including those under audit or objection, offering transitional relief for taxpayers who previously faced difficulties converting Lebanese pounds at market rates.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement