On 18 September 2026, the Lebanese Ministry of Finance (MoF) issued Decisions No. 834/1 and 835/1, granting significant reductions on penalties for self-assessed Value Added Tax (VAT) and Tax on Salaries. These decisions apply to penalties accrued up to 31 October 2026, providing temporary relief to taxpayers amid ongoing economic challenges. The measure is part of a series of penalty amnesty initiatives under the 2026 Budget Law, aiming to encourage voluntary compliance and revenue collection without imposing excessive financial burdens on businesses and employers.
Key Takeaways
- Penalty Reduction Scope: The decisions cover penalties on self-assessed VAT declarations and Tax on Salaries (payroll tax) for periods prior to the deadline. Taxpayers can benefit from reduced penalty rates if they settle outstanding amounts before 31 October 2026.
- Encouraging Voluntary Compliance: By lowering the cost of late payment, the MoF incentivizes taxpayers to regularize their tax positions. This is particularly relevant for companies facing liquidity constraints due to currency volatility.
- Procedural Simplicity: The decisions outline a straightforward application process; taxpayers need to submit the relevant declarations and pay the reduced penalties through the MoF’s electronic platforms or designated banks.
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