What are my business’ major taxes and their deadlines?
There are multiple tax obligations on a corporation such as the Corporate tax on profit, the Payroll tax; profit distribution taxes, and the Social Security Contribution.
There are multiple deadlines depending on the type of taxation that relates to your type of company. Below are the major tax obligations’ deadlines:
Deadlines for Corporate tax on profit: The Corporate tax on profit is declared annually; the deadline for the declaration of corporate tax on profit for joint stock (SAL), limited liability (SARL), and Offshore as well as Holding, is the 31st of May of each Fiscal year. Partnerships and Proprietorship`s tax on profit is 31st of March of each Fiscal Year.
Deadline for Fees paid to Non Residents: Tax on fees paid to Non Residents is declared and paid annually with the Corporate Income Tax Return.
Deadline for Payroll tax: The Payroll Tax is declared quarterly; the deadline for Payroll tax declaration is the 15th of the month following a quarter.
Deadline for profit distribution: The profit distribution tax is declared & paid within the month following the profit distribution resolution.
Deadline for Social Security Contributions: The Social Security Contribution is declared either Monthly or Quarterly depending on the number of employees in a certain company; if the number of employees is below ten, the declaration period is quarterly; if greater than ten employees, the declaration is monthly. For monthly declarations, the deadline is a month later. Meanwhile, for quarterly declarations, the deadline is a quarter later.
Fore more information on Taxes and dues, click here.
There are penalties for not meeting the deadlines? Below are the deadlines and penalties related.
Corporate tax on profit/Payroll Tax as well as Audit report and VAT, all have the same penalty scheme, if deadlines are not met: 5% of the Tax monthly up to 100% of the tax amount with a minimum of LBP 750,000 for joint stock (SAL) companies; LBP 500,000 is the minimum for limited liability (SARL) companies; LBP 100,000 is the minimum for Partnerships and Proprietorships.
Social Security Contribution penalty scheme is 0.5‰ per day of the Net Contributions.
Is my company required to pay the Value Added Tax (VAT)?
For Value Added Tax (VAT) registration, a company must meet the criteria of reaching a sales figure of LBP 100,000,000 in four consecutive quarters. Moreover, companies that import/ export goods/services are required to register at VAT within 2 months of import/export transaction. Note that there are few industries that are exempted from the VAT. Optional registration is allowed for companies having turnovers of LBP 50 million.
Concerning employees, what are my company's obligations towards them?
Employees should be registered in the National Social Security Fund (NSSF) for contribution declarations, as well as declared to the Ministry of Finance for Payroll tax declaration.