The heads of free professions issued a statement following their meeting with Minister of Finance Ghazi Wazni regarding the ministry's request for taxpayers, including freelance professionals, to comply with Article 25 of the Consumer Protection Law by issuing invoices to their clients exclusively in Lebanese pounds as part of their professional practice.
The National News Agency reported that the statement referenced the announcement from the Minister of Finance numbered 114 dated 15/1/2021, which requests taxpayers, including freelance professionals, to "adhere to Article 25 of the Consumer Protection Law by issuing invoices to their clients exclusively in Lebanese pounds as part of their professional practice." This requirement contradicts Article 17 of the same law and is therefore not applicable to freelancers given the nature of their work.
The statement included clarification from the Minister of Finance on several points related to the announcement number 114 issued on 15/1/2021, confirming that it does not apply to freelance professionals, thus they are not obliged to issue their invoices in Lebanese pounds, as the Consumer Protection Law cannot be applied to freelance professions, as outlined in Article 37 of the law.
It was also noted that the draft budget law for 2021 will be amended to exempt the funds of the unions of free professions established by law, as well as cooperation, mutual aid, and retirement funds of these unions, and the compensation and retirement funds for the teaching body in private schools, from the "National Solidarity Tax" stipulated in Article 37 of this draft, ensuring that this exceptional tax is not imposed on the value of credit accounts held by these funds in banks operating in Lebanon. This aligns with the government's plan that exempts these funds from any tax or non-tax deductions of any kind, as they represent savings belonging to their members.
The statement concluded with a commitment from the Minister of Finance to study raising the minimum threshold for mandatory registration in the VAT, in harmony with the significant depreciation of the national currency. It is worth mentioning that prior to the meeting with the Minister of Finance, there was consensus among the heads of the free professions, including the Bar Association in Beirut (Melhem Khalaf), the Bar Association in Tripoli (Mohammad Mourad), the Lebanese Physicians Association (Sharaf Abu Sharaf), and other professionals, on the necessity of addressing these crucial financial tax issues that concern unions in general and their members in particular.
The statement highlighted that in light of the draft budget law for 2021, which includes the imposition of a one-time exceptional tax on the value of all credit accounts opened with banks operating in Lebanon (Article 37 titled "National Solidarity Tax"), there are no exceptions for the deposits of established union funds or their pension and cooperative funds, which contradicts the government’s economic plan stating that these funds should be exempt from any tax deductions.
Additionally, the significant depreciation of the national currency impacts the minimum threshold set for mandatory VAT registration (currently one hundred million Lebanese pounds), necessitating a legitimate request to raise this threshold in line with the substantial depreciation.
Following discussions on these matters, a delegation of free professionals visited Minister of Finance Dr. Ghazi Wazni on Wednesday, February 3, 2021, to present these issues, carrying a written letter in this regard.
The statement concluded by emphasizing the need to keep meetings continuously convened during this difficult time faced by the nation, while addressing and managing all issues pertaining to the members of the free professions specifically, and the public in general.
