MoF’s decree targets those with no designated workplace

The Ministry of Finance (MoF) has issued a decree to better track residents and non-residents for tax purposes. It mainly targets those with no designated workplace in the country.

The decree requires taxpayers who buy services or assets from residents who are not registered at the MoF to inform the Ministry of their names and addresses on a quarterly basis.

Non-residents who do not have a designated workplace in the country and who make profits or revenues that are not generated through a local taxpayer must designate agents as their tax representatives.

The ruling targets people residing in the country who perform work that is subject to income tax but on an irregular basis such as drawing a painting, writing an article for the media, or carrying out a study.

It also targets non-residents, whether they are natural persons or legal persons such as companies, when they perform a taxable work locally.

The amounts that are taxed include those paid as compensation for provided services such as brokerage, mobile roaming, advertising, and advisory services. Subscription at international stock exchanges and at money transfer services are taxed as well as installation of equipment, maintenance, and training services.

The revenues that are charged comprise royalties received for patents, intellectual property, or industrial and commercial property, as well as for the right to copy or distribute software programs. The revenues received for technical, scientific, artistic, or sports activities are also taxed.

Interest rates paid on all kinds of debts and on delays in settlement of debts are taxed as well.

Earnings, revenues, and proceeds that are realized on the sale of software programs or on the incidental importation of merchandise are also taxed. Revenues generated from the sale of equipment, and from insurance and reinsurance of fixed and current assets located in Lebanon are also charged.