OCTOBER 2024 – LEBANON
UPDATED TAX BRACKETS, FAMILY EXEMPTION LIMITS AND EXCHANGE RATE
It is important that employers note the following:
Decree #959/1 issued by the Minister of Finance
On 5 September 2024 the Ministry of Finance issued Decree #959/1, detailing the method for calculating taxes on salaries paid partially or fully in foreign currencies, along with the progressive tax brackets and family allowances to be applied for the 2024/2025 tax year. The decree also extended the deadlines for filing and paying salary taxes. The new deadline is 31 October 2024 for the first and second quarters of 2024, and 29 November 2024 for the third quarter.
Tax brackets:
Effective 1 January 2024, the following tax brackets apply:
Effective 1 January 2025, the following tax brackets will apply:
Revised family exemption/deduction limits:
The annual family deduction for an individual for the period 1 January 2024 to 15 February 2024 is calculated in accordance with Law no. 10, issued on 15 November 2022 (the 2022 Budget Law).
New family exemptions, as per the budget law 2024, are applicable from 16 February 2024 until 31 December 2024.
A deduction of LBP 1,500,000 per day is granted to daily workers, irrespective of their family status.
Conversion rate:
As per the decree issued by the Ministry of Finance, the actual value of salaries paid in USD is to be converted into LBP using the following method:
For the period from 1 January 2024 to 31 March 2024:
- Salaries paid in cash – according to the rate of USD 1 = LBP 15,000.
- For salaries paid by cheque or by a bank transfer inside of Lebanon, the rates are as follows:
- USD 1 = LBP 8,000 for monthly salaries not exceeding USD 3,000.
- USD 1 = LBP 1,507.5 for the remaining monthly salary amounts exceeding USD 3,000.
For the period starting 1 April 2024:
According to Decree no. 302 (and its amendments) dated 3 April 2024, a conversion rate of USD 1 = LBP 89,500 is to be used.
Kindly note that the decree is only available in Arabic.
PLEASE NOTE
The implementation of this change requires an update of the payroll system parameters. If not done, you may incur penalties and interest. If you are unsure of how to make the change, please contact your consultant for assistance.
