New implementation rules increase the eligibility threshold for the 17% exceptional tax on Sayrafa profits and set out filing, reporting, payment and refund procedures for taxpayers and banks. 

RF Report

The Lebanese Ministry of Finance issued new rules governing the exceptional tax on profits from US dollar purchases made through the former Sayrafa platform, increasing the eligibility threshold while detailing how taxpayers, banks and the tax administration must comply with the measure.

The new rules, issued by the Ministry of Finance under Decision No. 616/1, also set out filing, reporting, payment and refund requirements for transactions carried out between 2021 and 2023.

Scope and threshold

The 17% additional exceptional tax on net profits applies to any natural or legal person whose aggregate purchases of US dollars through the Sayrafa platform exceeded USD 100,000 during 2021, 2022 and 2023.

For determining whether the threshold has been reached, all accounts belonging to the same depositor are treated as a single account, while an individual’s share in joint accounts is included in the total.

The tax applies regardless of whether the individual or legal entity is otherwise subject to income tax.

Tax rate and calculation

The tax is levied at 17% of the taxable profit.

Taxable profit is calculated as the difference between the net amount paid in Lebanese pounds for the US dollars and their actual net value in Lebanese pounds on the transaction date, after deducting bank commissions and other amounts retained by the bank.

Exemptions

Transactions relating exclusively to the conversion of salaries and wages into US dollars through the Sayrafa platform under Central Bank circulars are excluded from the tax.

Filing and reporting requirements

Covered taxpayers must submit a separate declaration and pay the tax within two months of the publication of the decision.

Declarations must be submitted in paper form exclusively through LibanPost using Form T5, while Form S18 serves as the payment notice.

Commercial banks must provide the Ministry of Finance with comprehensive electronic data, in Excel format, covering all relevant Sayrafa transactions within the same two-month period.

Payment methods

Tax payments may be made through banks, LibanPost, or approved electronic payment providers, including OMT, Whish Money, B.O.B, and Cash Plus.

Refunds and recalculations

Taxpayers who previously paid the tax but whose aggregate Sayrafa purchases did not exceed the new USD 100,000 threshold may apply for a refund.

Taxpayers whose purchases exceed the threshold may also recalculate their tax liability and claim a refund of any excess tax where bank commissions and deductions were not previously taken into account.

Penalties

Late filing is subject to a penalty of 10% of the tax due for each month of delay.

Late payment is subject to a penalty of 2% of the tax due for each month of delay.

The decision entered into force upon publication and repealed Decision No. 647/1 of 4 June 2024.