Financial Stamp

The proportional duty shall apply to all instruments and writings that expressly or implicitly deal with monetary amounts or monetary values, unless they are exempt or subject to the fixed duty pursuant to the provisions of the schedules annexed to this Legislative Decree.

The proportional duty shall also apply to amounts paid by the State, municipalities, and public institutions to their creditors, regardless of the type, form, and nature of the payment instrument, with the exception of:

1. 1)Deposits and securities returned to their owners.
2. 2)Grants and loans.
3. 3)Amounts collected without legal entitlement that are returned to the rightful owners.
4. 4)Amounts paid to a foreign state or an international organisation as aid, assistance, or by way of contribution.
5. 5)- Exempt from the duty are: allocations of public sector departments, salaries and wages of employees of the State, municipalities, and public institutions, and all compensation, grants, bonuses, and allowances attached thereto of whatever nature.
6. 6)Amounts paid by the State to public institutions, municipalities, municipal unions, and other legal persons of public character and non-profit entities.

The basis for imposing the proportional duty shall be the amounts stated in the instruments or writings, or resulting from the figures and provisions contained therein, or that could have been known at the time of the creation of such instruments and writings. The competent department may verify the actual amount or amounts dealt with in the instruments or writings by reference to other sources that came to its knowledge in a regular manner or that it was able to ascertain as a result of investigation.

If instruments or writings contain more than one provision or clause, and each provision or clause is itself subject to the proportional duty, the duty shall attach: - Either on the basis of the largest amount appearing in any of the provisions or clauses, if there is a single object and the provisions and clauses are complementary and interdependent and have no meaning in isolation. - Or on the basis of the amount stated in each provision or clause separately, if the conditions of unity of object and complementarity are not fulfilled. If the contract contains a penalty clause, the financial stamp duty shall be collected on the amounts stated in that penalty clause. When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.

For the purpose of determining the proportional duty, amounts stated in instruments and writings in foreign currency shall be converted into Lebanese currency on the basis of the lowest foreign exchange rate prevailing in the financial market on the day preceding the date on which the right to the duty arose. Amounts stated in documents submitted to the competent financial departments shall be converted on the basis of the exchange rate prevailing on the date of their submission.

1. 1)The proportional duty rate is set at 4‰ (four per thousand), unless this Legislative Decree or the schedules annexed thereto provide for the adoption of a different rate in respect of certain instruments and writings. For the purpose of applying the proportional duty, any amount less than three thousand Lebanese pounds shall be disregarded.
2. 2)When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.
3. 3)The implementing procedures of this Article shall be determined by decisions issued by the Minister of Finance.

The quantities of financial stamps, the place of their issuance, their denominations, shapes, the inscription to be printed on them, and the date of their introduction into circulation shall be determined by decisions of the Minister of Finance.

Financial stamps shall be sold to the public through:

1. 1)Licensed vendors in accordance with the provisions of this Legislative Decree.
2. 2)Cashiers or tellers at public administrations and institutions, in the circumstances determined by decisions of the Minister of Finance.
3. 3)Machines at public administrations and institutions and at other locations, provided that the commission rate does not exceed that specified in Article 24 of this Legislative Decree, in the circumstances determined and regulated by decisions of the Minister of Finance.

The licence to sell financial stamps shall be granted by the Head of the Treasury Office at the Ministry of Finance after verifying that the following conditions are met:

1. 1)The licence applicant must be Lebanese and not less than twenty years of age.
2. 2)The applicant must have no conviction for a felony or a disgraceful misdemeanour.
3. 3)The applicant must have a fixed place of business.
4. 4)There must be a need for establishing a new point of sale for financial stamps in the area in which the applicant is located.
5. 5)The applicant must provide a prior undertaking to comply with the laws and regulations, to implement the instructions relating to stamps, and in particular not to sell them at prices exceeding their nominal face value.
6. 6)In addition to the foregoing, the Head of the Treasury Office shall verify through the competent inspectors responsible for stamp matters:
7. 7)- That the stamp licence is in existence.
8. 8)- That the licence holder continues to comply with the conditions set out above and that those conditions are still fulfilled.

Licensed sellers of financial stamps and stamps of licensed exchange institutions shall receive a commission of five percent (5%) of the value of the stamps sold, payable to them subsequently upon submission of the stamps for the current year. The same commission applicable to licensed financial stamp sellers shall also be paid to owners of financial institutions that use franking machines in lieu of stamps, calculated on the basis of the required credit value.

Stamps affixed to instruments and writings subject to the duty shall be cancelled by indicating the date (day, month, and year) and by signing across them in the usual handwriting or initials, or by stamping them with an ink stamp (rubber stamp), provided that the cancellation covers the date and signature across all affixed stamps and extends beyond their borders by the signature on the margin. For the purpose of cancelling stamps, a signature may be replaced by what is deemed equivalent to a signature in accordance with Article 3 of this Law.

A penalty shall be imposed on any person committing any of the following violations relating to causing loss to the Treasury as a result of the violation:

1. 1)Failure to affix stamps of the value of the duty due, or affixing stamps of insufficient value.
2. 2)Failure to apply a franking mark of the value of the duty due, or applying a mark of insufficient value.
3. 3)Failure to collect and pay the duty that institutions subject to the periodic payment method are required to collect from the parties concerned, or failure to pay what was actually collected from them, in whole or in part, and failure to declare this to the competent financial departments when remitting the proceeds of the said duty to the Treasury funds.

A financial penalty equal to twice the value of the stamps that were not cancelled or were cancelled contrary to the provisions of Article 25 of this Legislative Decree shall be imposed on any person who defectively cancels stamps affixed to instruments and writings or cancels them in a manner contrary to those provisions.

A financial penalty equal to ten times the said duty shall be imposed on any person who delays payment of the duty in cash to the Treasury funds, however such payment is required by law in that form, beyond the prescribed deadline.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who fails to maintain the register required by Article 32, and also the register required by Article 52, or who delays in maintaining either or both registers, or in recording the information the law requires to be recorded therein, or who fails to submit the declaration required by Article 54.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who sells financial stamps at prices exceeding their nominal face value, together with revocation of the sales licence granted to them if they are a licensed vendor.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who sells financial stamps without a licence; the stamps offered for sale shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification. The Minister of Finance may decide to suspend the licence, when the violation is committed by a licensed person, for a period ranging from three days to one month if the violation is repeated within three years.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who writes on the franking mark or places on it any request, writing, drawing, or indication of any kind that renders its value unrecognisable.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who violates the provisions of Article 38 of this Legislative Decree relating to the licence for manufacturing, importing, selling, and trading in franking machines; the offending machines shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification.

The authorisation to use the franking machine shall be revoked, without the parties concerned having any right to compensation, if the authorised person misuses the said machine or commits any of the violations or offences provided for in Article 31, or fails to comply with the provisions of Articles 32, 34, and 35 of this Legislative Decree.

A fixed penalty of five hundred thousand Lebanese pounds (LBP 500,000) shall be imposed on any person who fails to retain instruments and writings subject to the duty for the retention period prescribed in Article 99 of this Legislative Decree; the competent officers shall then be entitled to assess the duty and impose the penalty provided for in Article 67 (first and second paragraphs) on the said instruments and writings, based on the violator's registers and their contents.

The financial penalty (fine) shall lapse upon the death of the violator, unless the violator was acting at the time of the violation on behalf of a third party, or on behalf of an institution in which they participated, or a group to which they belonged; in such case the fine shall be borne by whoever the violator was acting on behalf of. If the deceased violator had partners in the violation, the fine shall be borne in full by the surviving partners in proportion to their respective shares.

The penalties provided for in Articles 67, 68, 69, 70, and 71 shall be doubled upon the repetition of a violation within three civil years. Repeat violation shall only be deemed to have occurred if the violator committed the second violation after the date of the detection report for the first violation.

Financial penalties provided for in the preceding Articles shall be imposed unilaterally by the Head of the competent financial department. Other administrative penalties, such as revocation of licences, cancellation of authorisations, suspension of licences, and confiscation of stamps, shall be imposed by decisions of the Minister of Finance.

Penalties imposed pursuant to the provisions of the preceding Articles may be reduced, upon application by the parties concerned, to up to half their amount, by a decision of the Director-General of Finance.

The competent officer who prepares a violation report shall receive a share of the final penalty resulting from the detection of the violation amounting to fifteen percent (15%) of its value. A share of ten percent (10%) shall be awarded to the informant who provides the administration with actual, accurate, and relevant information that assists in detecting the violation. In the absence of an informant, this share shall be divided equally between the Treasury and the officers of the financial department in accordance with Article 82 below. An officer who uses his functions and duties to detect violations relating to the financial stamp duty may not assume the status of informant, nor may the said officer's spouse or any of their ascendants or descendants assume such status.

Ten percent (10%) of the total final penalties resulting from violations detected by the competent officers referred to in Article 60 of this Law shall be allocated and distributed as shares among the competent officers, proportionately between the share of the Head of the Revenue Office, the share of the Head of the competent financial department, and one equal share for each of the indirect tax inspectors assigned to those departments and each of their assistants, including clerks, typists, and ushers.

The fixed duty shall apply to instruments and writings which the schedules annexed to this Legislative Decree expressly subject to the duty, even if they contain a reference to a monetary amount. The fixed duty tariffs, for all types of instruments and writings, are set out in the schedules annexed to this Legislative Decree.

The affixing of stamps may be replaced by franking instruments and writings subject to the duty, or by endorsing them, in accordance with the provisions of the following articles:

1. 1)Franking
2. 2)Franking machines
3. 3)Endorsement

For the purpose of applying the provisions of this Legislative Decree, "franking" means the application of a special mark, taking the place of stamps, on the printed forms intended for the creation of instruments and writings subject to the duty, after payment of the duty thereon in cash to the Treasury funds.

The franking method may be adopted whether the stamp duty due is proportional or fixed, provided that the instruments and writings subject to the duty are created on printed forms bearing the name and address of the institution, its place of business, and its sequential registration number for each type thereof, and an identification of each instrument or writing. It is not required that such printed forms be disposable when used (such as printed manifests) or permanent (such as invoices and receipts).

Franking shall be performed by the competent financial department, unless the institution concerned requests permission to perform it itself by using the franking machine in accordance with the provisions of Articles 33 et seq. of this Legislative Decree.

An institution wishing to adopt the franking method must submit a prior application to the competent financial department specifying the types of printed forms submitted for franking, their quantities, and the amount of duty payable thereon.

A franking application submitted by an institution shall not be accepted if it is established that the institution has evaded or attempted to evade the payment of any tax or duty through fraud, manipulation of accounts, or in the evidentiary documents relating to the ownership of its assets, nor shall it be accepted from an institution that has been found to have violated the provisions of the financial stamp duty law within the three years preceding the date of the application, provided that violations settled as of the date of entry into force of this Legislative Decree are not taken into account.

An institution authorised to frank its printed forms must maintain a special register in which it records information relating to the franked printed forms in accordance with the procedures determined by a decision issued by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office. The competent financial department must maintain a general register containing information pertaining to the institutions concerned.

An institution may be authorised to perform franking itself by means of a franking machine if it has the necessary material conditions and, in particular, a complete control system. The authorisation shall be granted by decision of the Director-General of Finance upon the proposal of the Head of the Revenue Office, after verification that the procedures of the competent financial department have been fulfilled.

The franking mark must be applied on the printed form itself intended for the creation of the instrument or writing, and in each section thereof that contains no request, drawing, or indication of any kind. Nothing may be written on the franking mark or placed upon it from such tools.

The franking machine may only be used for the purpose for which it was authorised and for its own operations, and only on printed forms bearing the name (or address) of the institution and its place of business.

A franking mark applied by a machine contrary to the provisions of this Legislative Decree shall have no legal value.

The Minister of Finance may decide that the financial stamp duty be collected at certain public administrations by means of a franking machine, provided that the franking mark used at such administrations differs from the mark used by the franking machines at institutions. The Minister of Finance may also decide that the financial stamp duty be collected at certain notarial offices by means of a franking machine, provided that the franking mark used at such offices differs from the mark used by the franking machines at institutions and public administrations.

The manufacture, importation, and trading in franking machines shall be subject to a prior licence granted by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office.

The Minister of Finance may revoke any licence granted pursuant to the provisions of the preceding Article if it is found that its use is prejudicial to the Treasury. No form of appeal against such revocation shall be admissible.

Franking machines must at minimum meet the following technical conditions and specifications:

1. 1)The machine must be constructed in a way that when it applies a mark, a non-monetary (credit) value is displayed, and the commencement of the count is determined by means of a financial device, a franking cartridge, or any other method achieving the same purpose; it must not be possible to adjust or reset the machine without the intervention of the competent financial department, which retains the key to the said device or the franking cartridge or any other preventive means.
2. 2)The machine must be constructed in such a way as to ensure that the franking mark consists of two elements:
3. 3)- Marks identifying the required wording, signs, and drawings.
4. 4)- Figures identifying the numbers and amounts that determine the value of each mark.
5. 5)The franking mark must be applied in a single stroke, and it must not be possible by any means to apply the second value without applying the first.
6. 6)When the machine has exhausted the value of the mark, it must display on all digit indicators special signs in the form of stars on the digit indicators of the amounts in question.
7. 7)The numerals of the mark installed in the machine and their enclosures must be legible from the outside without dismantling the machine.
8. 8)The machine must be equipped with two counters: one to record the value of each mark upon its application, and one to record the cumulative total of marks applied; both must be constructed so that they automatically return to zero when the cumulative total of mark values equals the credit assigned to the machine.
9. 9)It must not be possible to use the credit assigned to the machine more than once by means of any of the specialised devices in the machine or by treating it in any other manner.

The Minister of Finance may, when necessary, determine additional technical conditions and specifications for franking machines.

The provisions relating to franking machines contained in this Legislative Decree shall enter into force on the date determined by the Minister of Finance by a decision published in the Official Gazette.

Parties concerned may request that the competent financial department accept payment of the financial stamp duty in cash to the Treasury funds, and that the affixing of stamps to instruments and writings be replaced by an endorsement by the department in the following two cases:

1. 1)If the parties concerned are submitting instruments or writings subject to the duty and no stamps have been affixed thereto in due time, or stamps of insufficient value have been affixed.
2. 2)If the parties concerned are submitting instruments or writings created abroad or at one of the diplomatic missions or foreign consulates and they intend to use them in Lebanon.
3. 3)If the parties concerned submit instruments or writings on which the duty is still pending and which have not yet taken final form, in the circumstances where the assessment thereof falls within the discretion of the Head of the competent financial department.
4. 4)In any case, if the value of the duty due exceeds two hundred thousand Lebanese pounds (LBP 200,000).
5. 5)Mobile telephone companies and electronic communications companies (Internet) shall draw up periodic weekly statements of their subscribers' invoices, and they may pay the fixed financial stamp duty due on such invoices in cash (instead of affixing the stamp).
6. 6)Companies shall remit the value of the fixed financial stamp duty within one week from the date of drawing up the statements.
7. 7)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
8. 8)Banks may issue monthly account statements by electronic means or otherwise after affixing a sequential number to each account statement, and they may pay the fixed financial stamp duty due on such statements in cash (instead of affixing the stamp).
9. 9)- Banks shall remit the value of the fixed financial stamp duty within one week from the date of drawing up such statements.
10. 10)- The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
11. 11)Banks may collect the fixed financial stamp duty in cash on documents and instruments they create that are subject to this duty pursuant to the provisions of the financial stamp duty law, provided that the proceeds of such duty are remitted weekly within three working days to the competent financial department together with the necessary statements.
12. 12)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
13. 13)Owners of institutions and companies may pay the fixed financial stamp duty in cash on the invoices they issue and put into use.

The competent financial department shall endorse the instruments and writings concerned after payment of the duty thereon and any additional penalty that may be due. The endorsement shall be applied by stamping the instrument or writing with a seal that ensures the recording of the receipt number, the date, the amount collected, and the signature of the authorised officer.

Any person who intentionally uses, sells, or attempts to sell financial stamps that have previously been used shall be punished by imprisonment from 15 days to two months and by a monetary fine of LBP 25,000 to LBP 100,000, or by either of these two penalties.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits or attempts to counterfeit the special mark applied by the franking machines referred to in Article 40 of this Legislative Decree, as well as any person who counterfeits or attempts to counterfeit the impression of that mark, shall be prosecuted.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits, forges, or attempts to counterfeit or forge financial stamps, or who uses counterfeited or forged stamps with prior knowledge, shall be prosecuted.

Pursuant to the provisions of Articles 461 and 462 of the Penal Code, any person who records in the register required by Article 32 or Article 52 of this Legislative Decree false or erroneous information, or who omits to record accurate information that should have been recorded, shall be prosecuted.

Pursuant to the provisions of Articles 381 et seq. of the Penal Code, any person who verbally opposes or attempts to obstruct officers charged with detecting violations of this Legislative Decree from performing their duties and functions, or who obstructs them by assault, violence, exposure to humiliation, defamation, or physical harm in any form, shall be prosecuted.

Officers charged with detecting violations of this Legislative Decree shall have the power to establish the misdemeanours and felonies referred to in this Chapter.

Financial penalties imposed by the administration may be cumulated with criminal penalties imposed by the courts pursuant to the provisions of the preceding Articles and the relevant provisions of the Penal Code.

The acquittal of the violator of the criminal charge attributed to them pursuant to the provisions of Articles 83 et seq. shall not entail the return by the administration of the penalty it imposed on them in accordance with the law.

The proportional duty shall apply to all instruments and writings that expressly or implicitly deal with monetary amounts or monetary values, unless they are exempt or subject to the fixed duty pursuant to the provisions of the schedules annexed to this Legislative Decree.

The proportional duty shall also apply to amounts paid by the State, municipalities, and public institutions to their creditors, regardless of the type, form, and nature of the payment instrument, with the exception of:

1. 1)Deposits and securities returned to their owners.
2. 2)Grants and loans.
3. 3)Amounts collected without legal entitlement that are returned to the rightful owners.
4. 4)Amounts paid to a foreign state or an international organisation as aid, assistance, or by way of contribution.
5. 5)- Exempt from the duty are: allocations of public sector departments, salaries and wages of employees of the State, municipalities, and public institutions, and all compensation, grants, bonuses, and allowances attached thereto of whatever nature.
6. 6)Amounts paid by the State to public institutions, municipalities, municipal unions, and other legal persons of public character and non-profit entities.

The basis for imposing the proportional duty shall be the amounts stated in the instruments or writings, or resulting from the figures and provisions contained therein, or that could have been known at the time of the creation of such instruments and writings. The competent department may verify the actual amount or amounts dealt with in the instruments or writings by reference to other sources that came to its knowledge in a regular manner or that it was able to ascertain as a result of investigation.

If instruments or writings contain more than one provision or clause, and each provision or clause is itself subject to the proportional duty, the duty shall attach: - Either on the basis of the largest amount appearing in any of the provisions or clauses, if there is a single object and the provisions and clauses are complementary and interdependent and have no meaning in isolation. - Or on the basis of the amount stated in each provision or clause separately, if the conditions of unity of object and complementarity are not fulfilled. If the contract contains a penalty clause, the financial stamp duty shall be collected on the amounts stated in that penalty clause. When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.

For the purpose of determining the proportional duty, amounts stated in instruments and writings in foreign currency shall be converted into Lebanese currency on the basis of the lowest foreign exchange rate prevailing in the financial market on the day preceding the date on which the right to the duty arose. Amounts stated in documents submitted to the competent financial departments shall be converted on the basis of the exchange rate prevailing on the date of their submission.

1. 1)The proportional duty rate is set at 4‰ (four per thousand), unless this Legislative Decree or the schedules annexed thereto provide for the adoption of a different rate in respect of certain instruments and writings. For the purpose of applying the proportional duty, any amount less than three thousand Lebanese pounds shall be disregarded.
2. 2)When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.
3. 3)The implementing procedures of this Article shall be determined by decisions issued by the Minister of Finance.

The quantities of financial stamps, the place of their issuance, their denominations, shapes, the inscription to be printed on them, and the date of their introduction into circulation shall be determined by decisions of the Minister of Finance.

Financial stamps shall be sold to the public through:

1. 1)Licensed vendors in accordance with the provisions of this Legislative Decree.
2. 2)Cashiers or tellers at public administrations and institutions, in the circumstances determined by decisions of the Minister of Finance.
3. 3)Machines at public administrations and institutions and at other locations, provided that the commission rate does not exceed that specified in Article 24 of this Legislative Decree, in the circumstances determined and regulated by decisions of the Minister of Finance.

The licence to sell financial stamps shall be granted by the Head of the Treasury Office at the Ministry of Finance after verifying that the following conditions are met:

1. 1)The licence applicant must be Lebanese and not less than twenty years of age.
2. 2)The applicant must have no conviction for a felony or a disgraceful misdemeanour.
3. 3)The applicant must have a fixed place of business.
4. 4)There must be a need for establishing a new point of sale for financial stamps in the area in which the applicant is located.
5. 5)The applicant must provide a prior undertaking to comply with the laws and regulations, to implement the instructions relating to stamps, and in particular not to sell them at prices exceeding their nominal face value.
6. 6)In addition to the foregoing, the Head of the Treasury Office shall verify through the competent inspectors responsible for stamp matters:
7. 7)- That the stamp licence is in existence.
8. 8)- That the licence holder continues to comply with the conditions set out above and that those conditions are still fulfilled.

Licensed sellers of financial stamps and stamps of licensed exchange institutions shall receive a commission of five percent (5%) of the value of the stamps sold, payable to them subsequently upon submission of the stamps for the current year. The same commission applicable to licensed financial stamp sellers shall also be paid to owners of financial institutions that use franking machines in lieu of stamps, calculated on the basis of the required credit value.

Stamps affixed to instruments and writings subject to the duty shall be cancelled by indicating the date (day, month, and year) and by signing across them in the usual handwriting or initials, or by stamping them with an ink stamp (rubber stamp), provided that the cancellation covers the date and signature across all affixed stamps and extends beyond their borders by the signature on the margin. For the purpose of cancelling stamps, a signature may be replaced by what is deemed equivalent to a signature in accordance with Article 3 of this Law.

A penalty shall be imposed on any person committing any of the following violations relating to causing loss to the Treasury as a result of the violation:

1. 1)Failure to affix stamps of the value of the duty due, or affixing stamps of insufficient value.
2. 2)Failure to apply a franking mark of the value of the duty due, or applying a mark of insufficient value.
3. 3)Failure to collect and pay the duty that institutions subject to the periodic payment method are required to collect from the parties concerned, or failure to pay what was actually collected from them, in whole or in part, and failure to declare this to the competent financial departments when remitting the proceeds of the said duty to the Treasury funds.

A financial penalty equal to twice the value of the stamps that were not cancelled or were cancelled contrary to the provisions of Article 25 of this Legislative Decree shall be imposed on any person who defectively cancels stamps affixed to instruments and writings or cancels them in a manner contrary to those provisions.

A financial penalty equal to ten times the said duty shall be imposed on any person who delays payment of the duty in cash to the Treasury funds, however such payment is required by law in that form, beyond the prescribed deadline.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who fails to maintain the register required by Article 32, and also the register required by Article 52, or who delays in maintaining either or both registers, or in recording the information the law requires to be recorded therein, or who fails to submit the declaration required by Article 54.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who sells financial stamps at prices exceeding their nominal face value, together with revocation of the sales licence granted to them if they are a licensed vendor.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who sells financial stamps without a licence; the stamps offered for sale shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification. The Minister of Finance may decide to suspend the licence, when the violation is committed by a licensed person, for a period ranging from three days to one month if the violation is repeated within three years.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who writes on the franking mark or places on it any request, writing, drawing, or indication of any kind that renders its value unrecognisable.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who violates the provisions of Article 38 of this Legislative Decree relating to the licence for manufacturing, importing, selling, and trading in franking machines; the offending machines shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification.

The authorisation to use the franking machine shall be revoked, without the parties concerned having any right to compensation, if the authorised person misuses the said machine or commits any of the violations or offences provided for in Article 31, or fails to comply with the provisions of Articles 32, 34, and 35 of this Legislative Decree.

A fixed penalty of five hundred thousand Lebanese pounds (LBP 500,000) shall be imposed on any person who fails to retain instruments and writings subject to the duty for the retention period prescribed in Article 99 of this Legislative Decree; the competent officers shall then be entitled to assess the duty and impose the penalty provided for in Article 67 (first and second paragraphs) on the said instruments and writings, based on the violator's registers and their contents.

The financial penalty (fine) shall lapse upon the death of the violator, unless the violator was acting at the time of the violation on behalf of a third party, or on behalf of an institution in which they participated, or a group to which they belonged; in such case the fine shall be borne by whoever the violator was acting on behalf of. If the deceased violator had partners in the violation, the fine shall be borne in full by the surviving partners in proportion to their respective shares.

The penalties provided for in Articles 67, 68, 69, 70, and 71 shall be doubled upon the repetition of a violation within three civil years. Repeat violation shall only be deemed to have occurred if the violator committed the second violation after the date of the detection report for the first violation.

Financial penalties provided for in the preceding Articles shall be imposed unilaterally by the Head of the competent financial department. Other administrative penalties, such as revocation of licences, cancellation of authorisations, suspension of licences, and confiscation of stamps, shall be imposed by decisions of the Minister of Finance.

Penalties imposed pursuant to the provisions of the preceding Articles may be reduced, upon application by the parties concerned, to up to half their amount, by a decision of the Director-General of Finance.

The competent officer who prepares a violation report shall receive a share of the final penalty resulting from the detection of the violation amounting to fifteen percent (15%) of its value. A share of ten percent (10%) shall be awarded to the informant who provides the administration with actual, accurate, and relevant information that assists in detecting the violation. In the absence of an informant, this share shall be divided equally between the Treasury and the officers of the financial department in accordance with Article 82 below. An officer who uses his functions and duties to detect violations relating to the financial stamp duty may not assume the status of informant, nor may the said officer's spouse or any of their ascendants or descendants assume such status.

Ten percent (10%) of the total final penalties resulting from violations detected by the competent officers referred to in Article 60 of this Law shall be allocated and distributed as shares among the competent officers, proportionately between the share of the Head of the Revenue Office, the share of the Head of the competent financial department, and one equal share for each of the indirect tax inspectors assigned to those departments and each of their assistants, including clerks, typists, and ushers.

The fixed duty shall apply to instruments and writings which the schedules annexed to this Legislative Decree expressly subject to the duty, even if they contain a reference to a monetary amount. The fixed duty tariffs, for all types of instruments and writings, are set out in the schedules annexed to this Legislative Decree.

The affixing of stamps may be replaced by franking instruments and writings subject to the duty, or by endorsing them, in accordance with the provisions of the following articles:

1. 1)Franking
2. 2)Franking machines
3. 3)Endorsement

For the purpose of applying the provisions of this Legislative Decree, "franking" means the application of a special mark, taking the place of stamps, on the printed forms intended for the creation of instruments and writings subject to the duty, after payment of the duty thereon in cash to the Treasury funds.

The franking method may be adopted whether the stamp duty due is proportional or fixed, provided that the instruments and writings subject to the duty are created on printed forms bearing the name and address of the institution, its place of business, and its sequential registration number for each type thereof, and an identification of each instrument or writing. It is not required that such printed forms be disposable when used (such as printed manifests) or permanent (such as invoices and receipts).

Franking shall be performed by the competent financial department, unless the institution concerned requests permission to perform it itself by using the franking machine in accordance with the provisions of Articles 33 et seq. of this Legislative Decree.

An institution wishing to adopt the franking method must submit a prior application to the competent financial department specifying the types of printed forms submitted for franking, their quantities, and the amount of duty payable thereon.

A franking application submitted by an institution shall not be accepted if it is established that the institution has evaded or attempted to evade the payment of any tax or duty through fraud, manipulation of accounts, or in the evidentiary documents relating to the ownership of its assets, nor shall it be accepted from an institution that has been found to have violated the provisions of the financial stamp duty law within the three years preceding the date of the application, provided that violations settled as of the date of entry into force of this Legislative Decree are not taken into account.

An institution authorised to frank its printed forms must maintain a special register in which it records information relating to the franked printed forms in accordance with the procedures determined by a decision issued by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office. The competent financial department must maintain a general register containing information pertaining to the institutions concerned.

An institution may be authorised to perform franking itself by means of a franking machine if it has the necessary material conditions and, in particular, a complete control system. The authorisation shall be granted by decision of the Director-General of Finance upon the proposal of the Head of the Revenue Office, after verification that the procedures of the competent financial department have been fulfilled.

The franking mark must be applied on the printed form itself intended for the creation of the instrument or writing, and in each section thereof that contains no request, drawing, or indication of any kind. Nothing may be written on the franking mark or placed upon it from such tools.

The franking machine may only be used for the purpose for which it was authorised and for its own operations, and only on printed forms bearing the name (or address) of the institution and its place of business.

A franking mark applied by a machine contrary to the provisions of this Legislative Decree shall have no legal value.

The Minister of Finance may decide that the financial stamp duty be collected at certain public administrations by means of a franking machine, provided that the franking mark used at such administrations differs from the mark used by the franking machines at institutions. The Minister of Finance may also decide that the financial stamp duty be collected at certain notarial offices by means of a franking machine, provided that the franking mark used at such offices differs from the mark used by the franking machines at institutions and public administrations.

The manufacture, importation, and trading in franking machines shall be subject to a prior licence granted by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office.

The Minister of Finance may revoke any licence granted pursuant to the provisions of the preceding Article if it is found that its use is prejudicial to the Treasury. No form of appeal against such revocation shall be admissible.

Franking machines must at minimum meet the following technical conditions and specifications:

1. 1)The machine must be constructed in a way that when it applies a mark, a non-monetary (credit) value is displayed, and the commencement of the count is determined by means of a financial device, a franking cartridge, or any other method achieving the same purpose; it must not be possible to adjust or reset the machine without the intervention of the competent financial department, which retains the key to the said device or the franking cartridge or any other preventive means.
2. 2)The machine must be constructed in such a way as to ensure that the franking mark consists of two elements:
3. 3)- Marks identifying the required wording, signs, and drawings.
4. 4)- Figures identifying the numbers and amounts that determine the value of each mark.
5. 5)The franking mark must be applied in a single stroke, and it must not be possible by any means to apply the second value without applying the first.
6. 6)When the machine has exhausted the value of the mark, it must display on all digit indicators special signs in the form of stars on the digit indicators of the amounts in question.
7. 7)The numerals of the mark installed in the machine and their enclosures must be legible from the outside without dismantling the machine.
8. 8)The machine must be equipped with two counters: one to record the value of each mark upon its application, and one to record the cumulative total of marks applied; both must be constructed so that they automatically return to zero when the cumulative total of mark values equals the credit assigned to the machine.
9. 9)It must not be possible to use the credit assigned to the machine more than once by means of any of the specialised devices in the machine or by treating it in any other manner.

The Minister of Finance may, when necessary, determine additional technical conditions and specifications for franking machines.

The provisions relating to franking machines contained in this Legislative Decree shall enter into force on the date determined by the Minister of Finance by a decision published in the Official Gazette.

Parties concerned may request that the competent financial department accept payment of the financial stamp duty in cash to the Treasury funds, and that the affixing of stamps to instruments and writings be replaced by an endorsement by the department in the following two cases:

1. 1)If the parties concerned are submitting instruments or writings subject to the duty and no stamps have been affixed thereto in due time, or stamps of insufficient value have been affixed.
2. 2)If the parties concerned are submitting instruments or writings created abroad or at one of the diplomatic missions or foreign consulates and they intend to use them in Lebanon.
3. 3)If the parties concerned submit instruments or writings on which the duty is still pending and which have not yet taken final form, in the circumstances where the assessment thereof falls within the discretion of the Head of the competent financial department.
4. 4)In any case, if the value of the duty due exceeds two hundred thousand Lebanese pounds (LBP 200,000).
5. 5)Mobile telephone companies and electronic communications companies (Internet) shall draw up periodic weekly statements of their subscribers' invoices, and they may pay the fixed financial stamp duty due on such invoices in cash (instead of affixing the stamp).
6. 6)Companies shall remit the value of the fixed financial stamp duty within one week from the date of drawing up the statements.
7. 7)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
8. 8)Banks may issue monthly account statements by electronic means or otherwise after affixing a sequential number to each account statement, and they may pay the fixed financial stamp duty due on such statements in cash (instead of affixing the stamp).
9. 9)- Banks shall remit the value of the fixed financial stamp duty within one week from the date of drawing up such statements.
10. 10)- The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
11. 11)Banks may collect the fixed financial stamp duty in cash on documents and instruments they create that are subject to this duty pursuant to the provisions of the financial stamp duty law, provided that the proceeds of such duty are remitted weekly within three working days to the competent financial department together with the necessary statements.
12. 12)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
13. 13)Owners of institutions and companies may pay the fixed financial stamp duty in cash on the invoices they issue and put into use.

The competent financial department shall endorse the instruments and writings concerned after payment of the duty thereon and any additional penalty that may be due. The endorsement shall be applied by stamping the instrument or writing with a seal that ensures the recording of the receipt number, the date, the amount collected, and the signature of the authorised officer.

Any person who intentionally uses, sells, or attempts to sell financial stamps that have previously been used shall be punished by imprisonment from 15 days to two months and by a monetary fine of LBP 25,000 to LBP 100,000, or by either of these two penalties.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits or attempts to counterfeit the special mark applied by the franking machines referred to in Article 40 of this Legislative Decree, as well as any person who counterfeits or attempts to counterfeit the impression of that mark, shall be prosecuted.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits, forges, or attempts to counterfeit or forge financial stamps, or who uses counterfeited or forged stamps with prior knowledge, shall be prosecuted.

Pursuant to the provisions of Articles 461 and 462 of the Penal Code, any person who records in the register required by Article 32 or Article 52 of this Legislative Decree false or erroneous information, or who omits to record accurate information that should have been recorded, shall be prosecuted.

Pursuant to the provisions of Articles 381 et seq. of the Penal Code, any person who verbally opposes or attempts to obstruct officers charged with detecting violations of this Legislative Decree from performing their duties and functions, or who obstructs them by assault, violence, exposure to humiliation, defamation, or physical harm in any form, shall be prosecuted.

Officers charged with detecting violations of this Legislative Decree shall have the power to establish the misdemeanours and felonies referred to in this Chapter.

Financial penalties imposed by the administration may be cumulated with criminal penalties imposed by the courts pursuant to the provisions of the preceding Articles and the relevant provisions of the Penal Code.

The acquittal of the violator of the criminal charge attributed to them pursuant to the provisions of Articles 83 et seq. shall not entail the return by the administration of the penalty it imposed on them in accordance with the law.

The affixing of stamps may be replaced by collecting the financial stamp duty in cash, without the need to apply a franking mark or endorsement, in the following cases:

1. 1)In respect of amounts disbursed by the State, municipalities, and public institutions and receipts issued by them.
2. 2)In respect of shares and debt securities issued by closed joint-stock companies.
3. 3)In respect of instruments and writings created by institutions subject to the periodic payment method.
4. 4)In any case, if the value of the duty due exceeds two hundred thousand Lebanese pounds (LBP 200,000).

The proportional duty due on amounts paid by the State, municipalities, and public institutions to their creditors shall be deducted from the principal of such amounts at the time of payment to the rightful owners, after the value of the duty has been recorded on the payment document.

The proportional duty referred to in the preceding Article may not be collected without also levying the duty on the invoices, agreements, and all accompanying documents related to the subject matter or amount of the debt, in accordance with the provisions of this Legislative Decree and the schedules annexed thereto.

Custodians of public funds may collect the financial stamp duty in cash when such duty attaches to receipts they issue upon receiving payments, in which case the value of the duty shall be added to the amount received.

Closed joint-stock companies shall pay in cash the proportional financial stamp duty that attaches to the shares and securities they resolve to issue: -1- Within three months counting from the earlier of: The date of the constituent general assembly at which the full subscription of the shares is verified and the board of directors, auditor, and their alternates are appointed, when the matter concerns the issuance of shares of the founding capital. The date of the decision taken at the extraordinary general assembly to issue debt securities, even if not yet fully subscribed, when the matter concerns the issuance of such securities. -2- Within one week from the date of the extraordinary general assembly at which the subscription for new shares is verified, upon the approval of a capital increase. The said companies must also pay the duty anew, in the same manner and within the same period, in the following two cases:

1. 1)For shares: when the company's term is extended; the duty shall then be collected on the basis of the capital value or the value that the extended capital had at the time of extension.
2. 2)For securities: when the repayment schedule or the interest rate is amended; the duty shall then be collected on the basis of the value of the securities covered by the amendment, provided that the duty is collected only once if the amendment covers the repayment schedule and the interest rate simultaneously.
3. 3)The duty shall not be collected anew in the event of a change in the form, number, or denomination of shares or securities, so long as the conditions of the preceding paragraph are not met.

Institutions specified in Article 51 below shall be required to collect the financial stamp duty on the instruments and writings they create for the parties concerned on a monthly basis, and to pay the proceeds thereof for each three-month period, covering what has attached thereto, to the Treasury funds on a quarterly basis in accordance with the procedures specified in the following Articles.

The periodic payment method provided for in Article 50 above shall apply to public institutions, municipalities, water projects of public benefit, insurance institutions, and concession companies.

Insurance institutions must maintain a statutory register in which they record monthly all contracts, their renewals, supplementary contracts, and any extension, renewal, or amendment, together with the value of the insurance premiums arising therefrom, in a manner that clearly shows the duties due on such instruments, with the number, date of issue, and value of each instrument stated. As for instruments and writings subject to the duty, the duty thereon shall be paid by affixing the financial stamp. The register referred to in this Article must be paginated and sealed by the competent financial department with its endorsements. Additional information that the said register must contain shall be determined as necessary by decisions of the Minister of Finance upon the proposal of the Indirect Tax Department and with the approval of the Head of the Revenue Office.

Institutions subject to the mandatory periodic payment method must remit the proceeds of the duty they collected on instruments and writings subject thereto within the first ten days following the end of each quarter of the civil year. Such institutions must mark the instruments and writings on which the duty was collected with the notation "financial stamp duty paid". The period shall be one month following each quarter of the civil year for public institutions, municipalities, water project unions, the National Deposits Insurance Institution, and concession companies.

Institutions subject to the mandatory periodic payment method must notify the financial department of the date of commencement of their operations and the date on which they ceased operations within one month from the date of commencement or cessation.

The proportional duty shall apply to all instruments and writings that expressly or implicitly deal with monetary amounts or monetary values, unless they are exempt or subject to the fixed duty pursuant to the provisions of the schedules annexed to this Legislative Decree.

The proportional duty shall also apply to amounts paid by the State, municipalities, and public institutions to their creditors, regardless of the type, form, and nature of the payment instrument, with the exception of:

1. 1)Deposits and securities returned to their owners.
2. 2)Grants and loans.
3. 3)Amounts collected without legal entitlement that are returned to the rightful owners.
4. 4)Amounts paid to a foreign state or an international organisation as aid, assistance, or by way of contribution.
5. 5)- Exempt from the duty are: allocations of public sector departments, salaries and wages of employees of the State, municipalities, and public institutions, and all compensation, grants, bonuses, and allowances attached thereto of whatever nature.
6. 6)Amounts paid by the State to public institutions, municipalities, municipal unions, and other legal persons of public character and non-profit entities.

The basis for imposing the proportional duty shall be the amounts stated in the instruments or writings, or resulting from the figures and provisions contained therein, or that could have been known at the time of the creation of such instruments and writings. The competent department may verify the actual amount or amounts dealt with in the instruments or writings by reference to other sources that came to its knowledge in a regular manner or that it was able to ascertain as a result of investigation.

If instruments or writings contain more than one provision or clause, and each provision or clause is itself subject to the proportional duty, the duty shall attach: - Either on the basis of the largest amount appearing in any of the provisions or clauses, if there is a single object and the provisions and clauses are complementary and interdependent and have no meaning in isolation. - Or on the basis of the amount stated in each provision or clause separately, if the conditions of unity of object and complementarity are not fulfilled. If the contract contains a penalty clause, the financial stamp duty shall be collected on the amounts stated in that penalty clause. When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.

For the purpose of determining the proportional duty, amounts stated in instruments and writings in foreign currency shall be converted into Lebanese currency on the basis of the lowest foreign exchange rate prevailing in the financial market on the day preceding the date on which the right to the duty arose. Amounts stated in documents submitted to the competent financial departments shall be converted on the basis of the exchange rate prevailing on the date of their submission.

1. 1)The proportional duty rate is set at 4‰ (four per thousand), unless this Legislative Decree or the schedules annexed thereto provide for the adoption of a different rate in respect of certain instruments and writings. For the purpose of applying the proportional duty, any amount less than three thousand Lebanese pounds shall be disregarded.
2. 2)When calculating the proportional financial stamp duty, that duty shall not be calculated on the value-added tax amount when it appears as a line item in instruments and writings, provided that the value of the VAT is first recorded in a separate line from the value of the goods and services that are the subject of the instrument.
3. 3)The implementing procedures of this Article shall be determined by decisions issued by the Minister of Finance.

The quantities of financial stamps, the place of their issuance, their denominations, shapes, the inscription to be printed on them, and the date of their introduction into circulation shall be determined by decisions of the Minister of Finance.

Financial stamps shall be sold to the public through:

1. 1)Licensed vendors in accordance with the provisions of this Legislative Decree.
2. 2)Cashiers or tellers at public administrations and institutions, in the circumstances determined by decisions of the Minister of Finance.
3. 3)Machines at public administrations and institutions and at other locations, provided that the commission rate does not exceed that specified in Article 24 of this Legislative Decree, in the circumstances determined and regulated by decisions of the Minister of Finance.

The licence to sell financial stamps shall be granted by the Head of the Treasury Office at the Ministry of Finance after verifying that the following conditions are met:

1. 1)The licence applicant must be Lebanese and not less than twenty years of age.
2. 2)The applicant must have no conviction for a felony or a disgraceful misdemeanour.
3. 3)The applicant must have a fixed place of business.
4. 4)There must be a need for establishing a new point of sale for financial stamps in the area in which the applicant is located.
5. 5)The applicant must provide a prior undertaking to comply with the laws and regulations, to implement the instructions relating to stamps, and in particular not to sell them at prices exceeding their nominal face value.
6. 6)In addition to the foregoing, the Head of the Treasury Office shall verify through the competent inspectors responsible for stamp matters:
7. 7)- That the stamp licence is in existence.
8. 8)- That the licence holder continues to comply with the conditions set out above and that those conditions are still fulfilled.

Licensed sellers of financial stamps and stamps of licensed exchange institutions shall receive a commission of five percent (5%) of the value of the stamps sold, payable to them subsequently upon submission of the stamps for the current year. The same commission applicable to licensed financial stamp sellers shall also be paid to owners of financial institutions that use franking machines in lieu of stamps, calculated on the basis of the required credit value.

Stamps affixed to instruments and writings subject to the duty shall be cancelled by indicating the date (day, month, and year) and by signing across them in the usual handwriting or initials, or by stamping them with an ink stamp (rubber stamp), provided that the cancellation covers the date and signature across all affixed stamps and extends beyond their borders by the signature on the margin. For the purpose of cancelling stamps, a signature may be replaced by what is deemed equivalent to a signature in accordance with Article 3 of this Law.

A penalty shall be imposed on any person committing any of the following violations relating to causing loss to the Treasury as a result of the violation:

1. 1)Failure to affix stamps of the value of the duty due, or affixing stamps of insufficient value.
2. 2)Failure to apply a franking mark of the value of the duty due, or applying a mark of insufficient value.
3. 3)Failure to collect and pay the duty that institutions subject to the periodic payment method are required to collect from the parties concerned, or failure to pay what was actually collected from them, in whole or in part, and failure to declare this to the competent financial departments when remitting the proceeds of the said duty to the Treasury funds.

A financial penalty equal to twice the value of the stamps that were not cancelled or were cancelled contrary to the provisions of Article 25 of this Legislative Decree shall be imposed on any person who defectively cancels stamps affixed to instruments and writings or cancels them in a manner contrary to those provisions.

A financial penalty equal to ten times the said duty shall be imposed on any person who delays payment of the duty in cash to the Treasury funds, however such payment is required by law in that form, beyond the prescribed deadline.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who fails to maintain the register required by Article 32, and also the register required by Article 52, or who delays in maintaining either or both registers, or in recording the information the law requires to be recorded therein, or who fails to submit the declaration required by Article 54.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who sells financial stamps at prices exceeding their nominal face value, together with revocation of the sales licence granted to them if they are a licensed vendor.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who sells financial stamps without a licence; the stamps offered for sale shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification. The Minister of Finance may decide to suspend the licence, when the violation is committed by a licensed person, for a period ranging from three days to one month if the violation is repeated within three years.

A fixed penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000) shall be imposed on any person who writes on the franking mark or places on it any request, writing, drawing, or indication of any kind that renders its value unrecognisable.

A penalty of two hundred and fifty thousand Lebanese pounds (LBP 250,000), subject to settlement, shall be imposed on any person who violates the provisions of Article 38 of this Legislative Decree relating to the licence for manufacturing, importing, selling, and trading in franking machines; the offending machines shall be confiscated and shall become the property of the Treasury without the parties concerned having any right to compensation or indemnification.

The authorisation to use the franking machine shall be revoked, without the parties concerned having any right to compensation, if the authorised person misuses the said machine or commits any of the violations or offences provided for in Article 31, or fails to comply with the provisions of Articles 32, 34, and 35 of this Legislative Decree.

A fixed penalty of five hundred thousand Lebanese pounds (LBP 500,000) shall be imposed on any person who fails to retain instruments and writings subject to the duty for the retention period prescribed in Article 99 of this Legislative Decree; the competent officers shall then be entitled to assess the duty and impose the penalty provided for in Article 67 (first and second paragraphs) on the said instruments and writings, based on the violator's registers and their contents.

The financial penalty (fine) shall lapse upon the death of the violator, unless the violator was acting at the time of the violation on behalf of a third party, or on behalf of an institution in which they participated, or a group to which they belonged; in such case the fine shall be borne by whoever the violator was acting on behalf of. If the deceased violator had partners in the violation, the fine shall be borne in full by the surviving partners in proportion to their respective shares.

The penalties provided for in Articles 67, 68, 69, 70, and 71 shall be doubled upon the repetition of a violation within three civil years. Repeat violation shall only be deemed to have occurred if the violator committed the second violation after the date of the detection report for the first violation.

Financial penalties provided for in the preceding Articles shall be imposed unilaterally by the Head of the competent financial department. Other administrative penalties, such as revocation of licences, cancellation of authorisations, suspension of licences, and confiscation of stamps, shall be imposed by decisions of the Minister of Finance.

Penalties imposed pursuant to the provisions of the preceding Articles may be reduced, upon application by the parties concerned, to up to half their amount, by a decision of the Director-General of Finance.

The competent officer who prepares a violation report shall receive a share of the final penalty resulting from the detection of the violation amounting to fifteen percent (15%) of its value. A share of ten percent (10%) shall be awarded to the informant who provides the administration with actual, accurate, and relevant information that assists in detecting the violation. In the absence of an informant, this share shall be divided equally between the Treasury and the officers of the financial department in accordance with Article 82 below. An officer who uses his functions and duties to detect violations relating to the financial stamp duty may not assume the status of informant, nor may the said officer's spouse or any of their ascendants or descendants assume such status.

Ten percent (10%) of the total final penalties resulting from violations detected by the competent officers referred to in Article 60 of this Law shall be allocated and distributed as shares among the competent officers, proportionately between the share of the Head of the Revenue Office, the share of the Head of the competent financial department, and one equal share for each of the indirect tax inspectors assigned to those departments and each of their assistants, including clerks, typists, and ushers.

The fixed duty shall apply to instruments and writings which the schedules annexed to this Legislative Decree expressly subject to the duty, even if they contain a reference to a monetary amount. The fixed duty tariffs, for all types of instruments and writings, are set out in the schedules annexed to this Legislative Decree.

The affixing of stamps may be replaced by franking instruments and writings subject to the duty, or by endorsing them, in accordance with the provisions of the following articles:

1. 1)Franking
2. 2)Franking machines
3. 3)Endorsement

For the purpose of applying the provisions of this Legislative Decree, "franking" means the application of a special mark, taking the place of stamps, on the printed forms intended for the creation of instruments and writings subject to the duty, after payment of the duty thereon in cash to the Treasury funds.

The franking method may be adopted whether the stamp duty due is proportional or fixed, provided that the instruments and writings subject to the duty are created on printed forms bearing the name and address of the institution, its place of business, and its sequential registration number for each type thereof, and an identification of each instrument or writing. It is not required that such printed forms be disposable when used (such as printed manifests) or permanent (such as invoices and receipts).

Franking shall be performed by the competent financial department, unless the institution concerned requests permission to perform it itself by using the franking machine in accordance with the provisions of Articles 33 et seq. of this Legislative Decree.

An institution wishing to adopt the franking method must submit a prior application to the competent financial department specifying the types of printed forms submitted for franking, their quantities, and the amount of duty payable thereon.

A franking application submitted by an institution shall not be accepted if it is established that the institution has evaded or attempted to evade the payment of any tax or duty through fraud, manipulation of accounts, or in the evidentiary documents relating to the ownership of its assets, nor shall it be accepted from an institution that has been found to have violated the provisions of the financial stamp duty law within the three years preceding the date of the application, provided that violations settled as of the date of entry into force of this Legislative Decree are not taken into account.

An institution authorised to frank its printed forms must maintain a special register in which it records information relating to the franked printed forms in accordance with the procedures determined by a decision issued by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office. The competent financial department must maintain a general register containing information pertaining to the institutions concerned.

An institution may be authorised to perform franking itself by means of a franking machine if it has the necessary material conditions and, in particular, a complete control system. The authorisation shall be granted by decision of the Director-General of Finance upon the proposal of the Head of the Revenue Office, after verification that the procedures of the competent financial department have been fulfilled.

The franking mark must be applied on the printed form itself intended for the creation of the instrument or writing, and in each section thereof that contains no request, drawing, or indication of any kind. Nothing may be written on the franking mark or placed upon it from such tools.

The franking machine may only be used for the purpose for which it was authorised and for its own operations, and only on printed forms bearing the name (or address) of the institution and its place of business.

A franking mark applied by a machine contrary to the provisions of this Legislative Decree shall have no legal value.

The Minister of Finance may decide that the financial stamp duty be collected at certain public administrations by means of a franking machine, provided that the franking mark used at such administrations differs from the mark used by the franking machines at institutions. The Minister of Finance may also decide that the financial stamp duty be collected at certain notarial offices by means of a franking machine, provided that the franking mark used at such offices differs from the mark used by the franking machines at institutions and public administrations.

The manufacture, importation, and trading in franking machines shall be subject to a prior licence granted by the Minister of Finance upon the proposal of the Head of the Indirect Tax Department and with the approval of the Head of the Revenue Office.

The Minister of Finance may revoke any licence granted pursuant to the provisions of the preceding Article if it is found that its use is prejudicial to the Treasury. No form of appeal against such revocation shall be admissible.

Franking machines must at minimum meet the following technical conditions and specifications:

1. 1)The machine must be constructed in a way that when it applies a mark, a non-monetary (credit) value is displayed, and the commencement of the count is determined by means of a financial device, a franking cartridge, or any other method achieving the same purpose; it must not be possible to adjust or reset the machine without the intervention of the competent financial department, which retains the key to the said device or the franking cartridge or any other preventive means.
2. 2)The machine must be constructed in such a way as to ensure that the franking mark consists of two elements:
3. 3)- Marks identifying the required wording, signs, and drawings.
4. 4)- Figures identifying the numbers and amounts that determine the value of each mark.
5. 5)The franking mark must be applied in a single stroke, and it must not be possible by any means to apply the second value without applying the first.
6. 6)When the machine has exhausted the value of the mark, it must display on all digit indicators special signs in the form of stars on the digit indicators of the amounts in question.
7. 7)The numerals of the mark installed in the machine and their enclosures must be legible from the outside without dismantling the machine.
8. 8)The machine must be equipped with two counters: one to record the value of each mark upon its application, and one to record the cumulative total of marks applied; both must be constructed so that they automatically return to zero when the cumulative total of mark values equals the credit assigned to the machine.
9. 9)It must not be possible to use the credit assigned to the machine more than once by means of any of the specialised devices in the machine or by treating it in any other manner.

The Minister of Finance may, when necessary, determine additional technical conditions and specifications for franking machines.

The provisions relating to franking machines contained in this Legislative Decree shall enter into force on the date determined by the Minister of Finance by a decision published in the Official Gazette.

Parties concerned may request that the competent financial department accept payment of the financial stamp duty in cash to the Treasury funds, and that the affixing of stamps to instruments and writings be replaced by an endorsement by the department in the following two cases:

1. 1)If the parties concerned are submitting instruments or writings subject to the duty and no stamps have been affixed thereto in due time, or stamps of insufficient value have been affixed.
2. 2)If the parties concerned are submitting instruments or writings created abroad or at one of the diplomatic missions or foreign consulates and they intend to use them in Lebanon.
3. 3)If the parties concerned submit instruments or writings on which the duty is still pending and which have not yet taken final form, in the circumstances where the assessment thereof falls within the discretion of the Head of the competent financial department.
4. 4)In any case, if the value of the duty due exceeds two hundred thousand Lebanese pounds (LBP 200,000).
5. 5)Mobile telephone companies and electronic communications companies (Internet) shall draw up periodic weekly statements of their subscribers' invoices, and they may pay the fixed financial stamp duty due on such invoices in cash (instead of affixing the stamp).
6. 6)Companies shall remit the value of the fixed financial stamp duty within one week from the date of drawing up the statements.
7. 7)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
8. 8)Banks may issue monthly account statements by electronic means or otherwise after affixing a sequential number to each account statement, and they may pay the fixed financial stamp duty due on such statements in cash (instead of affixing the stamp).
9. 9)- Banks shall remit the value of the fixed financial stamp duty within one week from the date of drawing up such statements.
10. 10)- The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
11. 11)Banks may collect the fixed financial stamp duty in cash on documents and instruments they create that are subject to this duty pursuant to the provisions of the financial stamp duty law, provided that the proceeds of such duty are remitted weekly within three working days to the competent financial department together with the necessary statements.
12. 12)The implementing procedures of this Article shall be determined by a decision issued by the Minister of Finance.
13. 13)Owners of institutions and companies may pay the fixed financial stamp duty in cash on the invoices they issue and put into use.

The competent financial department shall endorse the instruments and writings concerned after payment of the duty thereon and any additional penalty that may be due. The endorsement shall be applied by stamping the instrument or writing with a seal that ensures the recording of the receipt number, the date, the amount collected, and the signature of the authorised officer.

Any person who intentionally uses, sells, or attempts to sell financial stamps that have previously been used shall be punished by imprisonment from 15 days to two months and by a monetary fine of LBP 25,000 to LBP 100,000, or by either of these two penalties.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits or attempts to counterfeit the special mark applied by the franking machines referred to in Article 40 of this Legislative Decree, as well as any person who counterfeits or attempts to counterfeit the impression of that mark, shall be prosecuted.

Pursuant to the provisions of Articles 450 and 451 of the Penal Code, any person who counterfeits, forges, or attempts to counterfeit or forge financial stamps, or who uses counterfeited or forged stamps with prior knowledge, shall be prosecuted.

Pursuant to the provisions of Articles 461 and 462 of the Penal Code, any person who records in the register required by Article 32 or Article 52 of this Legislative Decree false or erroneous information, or who omits to record accurate information that should have been recorded, shall be prosecuted.

Pursuant to the provisions of Articles 381 et seq. of the Penal Code, any person who verbally opposes or attempts to obstruct officers charged with detecting violations of this Legislative Decree from performing their duties and functions, or who obstructs them by assault, violence, exposure to humiliation, defamation, or physical harm in any form, shall be prosecuted.

Officers charged with detecting violations of this Legislative Decree shall have the power to establish the misdemeanours and felonies referred to in this Chapter.

Financial penalties imposed by the administration may be cumulated with criminal penalties imposed by the courts pursuant to the provisions of the preceding Articles and the relevant provisions of the Penal Code.

The acquittal of the violator of the criminal charge attributed to them pursuant to the provisions of Articles 83 et seq. shall not entail the return by the administration of the penalty it imposed on them in accordance with the law.