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Read the latest news in Economy, Trade, Banking, and Energy in the most recent Country Risk Weekly Bulletin 391 prepared and published by Byblos Bank SAL

Did you know that the Lebanese Association of Certified Public Accountants now has an application that you can download on iTunes or on Google Play

According to its description, it should contribute to:
– Preserving and promoting the interests of CPAs and the profession itself.
– Serving to improve the transparency of the industry and to maintain the profession’s integrity
– Providing better products for the CPAs, Professionals and the public.
– Ensuring the well-being of LACPA’s members, while upholding the public interest. We believe that this can be assured by:
– Enhancing the services’ quality based on professional competence, integrity, and objectivity.
– Serving as an advocate for, and promoting the public image of, its members.
– Articulating positions on professional and public issues when the expertise of CPAs is relevant.
– Providing the necessary resources for members to thrive in a dynamic, rapidly changing environment.
– Ensuring that LACPA becomes globally recognized by the financial community as a respected institution influencing the concepts and ethical practices of accounting and auditing.
– Providing members with a personal and professional development opportunities in accounting and auditing through education and in association with business professionals and certification.

It is always pleasing to receive accolades and two awards were granted this year; one being the Acquisition International award for “Accounting Association of the Year – EMEA Region” and the other from the International Accounting Bulletin as runner-up for “Association of the Year 2014”

Abou Nasr and Associates is excited and delighted to join the BKR INTERNATIONAL EMEA Regional Meeting in Stockholm, Sweden, May 16-18.

Find out more about BRK International in the 2015 BKR Annual Report

“Lebanon came in 10th in the region and 94th worldwide in Natixis Asset Management’s retirement index for the year 2015, with a score of 50% in the index. In details, Lebanon scored 34% in the quality of life sub-index, the worse score in the region, while achieving a score of 69% in the health sub-index, the second highest score in the region.”

Find out more in the attached Credit Libanais Market Watch – Feb 9 2015 – Feb 13 2015

Keep this handy blog post saved and check it every month to make sure you don’t miss any filing deadlines

  • January 15 :
    • Income Tax on salaries Q4 of previous year
    • Income Tax on interest (part III) Q4 of previous year
  • January 20:
    • VAT return on Q4 previous year
  • January 31:
    • Payment of Alcohol permits for restaurants
    • Income Tax Returns for Taxpayers under lump sum scheme non-profit organization
  • February 28:
    • Filing of R6 and R7
    • Annual return of income tax on salaries R5
  • March 31:
    • Income tax returns for sole proprietorship and partnership under the real profit method
    • Progressive tax return on real estate
    • Annual declaration to social security
  • April 15:
    • Income tax on salaries Q1 of current year
    • Income tax on interest (part III) Q1 of current year
  • April 20:
    • VAT return Q1
  • April 30:
    • Personal Income Tax on salaries return R8
  • May 31:
    • Income Tax returns of capital companies
  • June 30:
    • Auditors report on partnership entities
  • July 15:
    • Income tax on salaries Q2
    • Income tax on interest (part III) Q2
  • July 20:
    • VAT return Q2
  • August 31:
    • Auditors report on corporation (SAL and SARL)
  • October 15:
    • Income Tax on salaries Q3
    • Income tax on interest (part III) Q3
  • October 20:
    • VAT returns Q3

Did you know?

  • January:
    • Registration at VAT becomes compulsory as soon as sales for 4 consecutive quarters exceed 150.000.000 LBP or 100.000$. The registration should be done within two months after the end of the quarter reaching 100,000$. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • February:
    • Year-end bonuses based on performance, not declared in Q4 can be declared within the annual return on 28/2 without any penalties if a decision is taken in a previous meetings minutes. The registration number of the Ministry of Finance should be mentioned on all invoices and receipts.
  • March:
    • Partners and directors of companies are not allowed to obtain loans from their companies; any loans outstanding may lead to an assessment by the Ministry of Finance. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • April:
    • Taxpayers earning salaries from more than 1 employer must prepare an individual tax return by 30/4. Dividends declared in annual general meetings are taxable at 10% and must be declared within one month of the decision date of the minute. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • May:
    • Payments to non-residents rendering services are subject to a 7.5% withholding tax and 2.25% when it involves goods acquired. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • June:
    • Any disposal of parts in an SARL or Partnership must be declared within two months on the agreement and a Tax 10% on the capital gain is due. The ministry of Finance reserves the right to assess the valuation of the parts disposed. Any amendments in the company’s bylaws should be reported within two months to the Ministry of Finance.
  • July:
    • Contracts are subject to 0.3% stamp duty by apposing fiscal stamps on the contract when the amount of the stamps exceeds 200,000 LBP. The payment must be done at the Ministry of Finance within 5 working days of the contract date. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • August:
    • Lebanon has signed a number of tax treaties with other countries as well as reciprocal investment protection agreements. To obtain a list, do not hesitate to contact us.
    • When a company or any taxpayer ceases work, it should report it to the Ministry of Finance within two months.
  • September:
    • Companies and individuals wishing to import goods into Lebanon must have a registration number at the income tax and a clearance from the social security in that sense. Goods exporters should be registered at the VAT.
  • October:
    • Payments to foreign companies for services rendered in Lebanon are subject to VAT to be declared by the Lebanese taxpayers whether registered or not at the VAT Department. As per Tax Procedure Law: If the submission/receipt deadline falls on an official holiday or Sunday, the deadline is automatically extended to the next working day.
  • November:
    • Interest on long terms loans by Holding companies to subsidiaries is exempt from taxation in the Holding and deductible at the level of the subsidiaries on condition that it abides by instruction #1366 dated 31/08/2007 by the Ministry of Finance.
  • December:
    • Interest on bonds issued is taxed at 5% and is payable on a monthly basis in the currency of the bond issued to the Ministry of Finance.

Lebanon opportunities predicts positive growth, expansion plans, and projects to be completed:
– The government’s overall deficit is forecast to widen to 11 percent of the GDP in 2015, compared to ten percent in 2014, according to World Bank estimates.
– Growth may be between 2 to 2.5 percent in 2015, in the light of BDL’s $1 billion package and remaining liquidity from previous packages
– The performance at the Beirut Stock Exchange (BSE) in 2015 is subject to high correlation between the local and regional political environments and traders’ appetites.
– Real estate activity is expected to remain timid in 2015.
– Despite deceiving tourism figures, investments in the tourism sector will thrive in 2015.
– Malls and supermarket chains will be dynamic in 2015.
– A growing number of web-based TV channels and portals are being launched, announcing an era of interactivity and fast broadcast of information.
– Local farmers will continue filling the gap left by the Syrian conflict.
– Several factories will begin operating and a number of industrial companies will expand their facilities in 2015.
– Public works are forecast to pick up in 2015.

Find out more on Lebanon Opportunities’ website

This document is prepared by Abou Nasr & Associates, independent member of BKR international, for the benefit of any potential investors contemplating setting up business in Lebanon. In addition to providing a general overview on Lebanon, it describes the different business entities as well as the taxation service and the social security system.

Click on the following link to read or download the guide: Doing Business in Lebanon

We at Abou Nasr & Associates, independent member of BKR international, can help you set up any kind of business in Lebanon and we’d be more than happy to assist you should you have additional questions that are not answered by this comprehensive document. Don’t hesitate to give us a call, or leave us a message with your contact details and we’ll get in touch with you.

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