Minister of Finance Issues Decision on Inheritance Tax Application

Minister of Finance Yassine Jaber issued a decision specifying the details for applying several provisions of Article 45 of the General Budget Law for the year 2026, related to inheritance tax. The decision establishes practical mechanisms for implementing the exemptions and amendments approved by the law, as well as recalculating fees according to the new provisions.

Under the decision, events occurring before January 1, 2007, are exempt from inheritance tax. The decision also specifies exemptions, deductions, and rates applicable to events occurring between January 1, 2007, and November 15, 2022, and those occurring from November 16, 2022, onwards.

Regarding events occurring from November 16, 2022, onwards, the decision sets the exempt portion of the net inheritance share at 2.4 billion Lebanese pounds for descendants, spouses, and parents; 960 million Lebanese pounds for ascendants other than parents, siblings; and 480 million Lebanese pounds for other heirs, in addition to other legally stipulated deductions.

The decision also stipulates the exemption of all aids, grants, and subsidies paid from public funds. It limits the exemption on gifts to no more than 96 million Lebanese pounds, while the exemption reaches 6 billion Lebanese pounds when the beneficiary is an institution or association belonging to categories defined by the law, including religious endowments.

The decision also regulates the status of taxpayers liable for inheritance tax who have not paid the fees due for events occurring from November 16, 2022, onwards. Competent financial units will recalculate the fees according to the new provisions. This includes taxpayers who previously obtained approval for installment payments, with necessary deductions applied to the unpaid installments.

To preserve citizens' rights to submit their declarations within legal deadlines, the decision maintains the current mechanisms until the completion of the necessary electronic applications. These applications will allow citizens to submit their transactions, calculate the resulting inheritance taxes, and pay them electronically.

The decision takes effect immediately upon issuance and publication in the Official Gazette and on the Ministry of Finance's website.

The full text of the decision is available on the official website of the Ministry of Finance: www.finance.gov.lb