Lebanon Businessnews News

85 percent cuts
on overdue tax fines
Repayment by installment is allowed
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Taxpayers can benefit from an 85-percent cut on fines imposed on unpaid taxes provided they settle the overdue taxes and the related reduced fines by the end of the current year, according to the 2019 budget law.

The cuts pertain to taxes imposed by the General Directorate of Finance and by other public departments and public institutions, as well as municipalities and other public bodies.

Overdue car registration fees (mecanique) also benefit from the fine deductions.

The budget law has also opened the door for the repayment of a number of taxes and their related fines in installments.

Taxpayers, including businesses operating in the tourism sector, are allowed to repay overdue municipality fees and related fines over five years at an interest rate of five percent, provided they settle 20 percent of the total amount before the end of 2019.

Companies that owe overdue contributions to the National Social Security Fund (NSSF) can also pay by installment under the same conditions. If they pay the outstanding contributions and related fines they can benefit from a deduction of 85 percent on fines imposed after 2000 and they will be totally exempted from earlier fines, provided they settle the entire amount they owe.

The decision to cut overdue tax fines aims to encourage taxpayers to settle unpaid taxes as part of the government’s efforts to reduce the 2019 fiscal deficit to 7.6 percent of gross domestic product (GDP). At the CEDRE donor conference, the government committed to lowering the deficit-to-GDP ratio by one percentage point per year over five years. The projected total expenditure in the 2019 budget is $16.9 billion.
Reported by Shikrallah Nakhoul
Date Posted: Aug 06, 2019
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