Taxation Law

LAW

Income Tax Law

REFERENCE Law 24/2003
DATE OF PROMULGATION Approved by the People’s Assembly on October 28, 2003
Promulgated by President Bashar Al-Assad on November 13, 2003
RELEVANT PROVISIONS
  • Income tax rates are lowered significantly in comparison with previous legislation.
  • Income taxes are imposed on commercial establishments ranging from 10% to 28%.
  • Corporate tax is usually set at a rate of 22% though significant deductions exist in certain cases.
  • Further incentives are also afforded to businesses that operate in the industrial sector.
  • Depending on the types of business dealings involved, other taxation structures apply.
  • The payroll tax ranges from 5% to 22%.
RELATED LEGISLATION
  • Historically, income tax legislation was governed by Legislative Decree 85/1949 and its amendments before Law 24/2003 came into effect.
  • Important amendments to Law 24/2003 are contained in Law 60/2004 and Legislative Decrees 51/2006 and 10/2015.
  • Latest amendments to the payroll tax are found in Legislative Decree 42/2011.
  • Amendments to Law 24/2003 are also contained in Law 41/2005, which deals with capital gains tax on real property.
HISTORICAL CONTEXT
  • This Law was enacted during the time Syria began to gradually liberalize its economy but not before plans for a social market economy were officially announced.
  • This Law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Tax Evasion Law

REFERENCE Law 25/2003
DATE OF PROMULGATION Approved by the People’s Assembly on November 13, 2003
Promulgated by President Bashar Al-Assad on November 18, 2003
RELEVANT PROVISIONS
  • Threatens fines and imprisonment for individuals that attempt to evade their tax liabilities.
RELATED LEGISLATION
  • Came into effect immediately after Law 24/2003 since the government was making it clear that it would not tolerate attempts to evade tax liabilities when the tax brackets were lowered significantly in comparison with previous legislation.
HISTORICAL CONTEXT
  • This Law was enacted during the time Syria began to gradually liberalize its economy but not before plans for a social market economy were officially announced.
  • This Law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Capital Gains Tax Law

REFERENCE Law 41/2005
DATE OF PROMULGATION Approved by the People’s Assembly on December 20, 2005
Promulgated by President Bashar Al-Assad on December 26, 2005
RELEVANT PROVISIONS
  • Capital gains tax on real estate transactions on average range from 15% to 30% based on the registered value of the property.
RELATED LEGISLATION
  • This Law contains amendments to the Income Tax Law 24/2003.
  • Amendments to Law 41/2005 are contained in Legislative Decree 52/2006.
HISTORICAL CONTEXT
  • This Law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Property Income Tax Law

REFERENCE Legislative Decree 53/2006
DATE OF PROMULGATION Promulgated by President Bashar Al-Assad on October 1, 2006
RELEVANT PROVISIONS
  • Taxes income generated from various types of immovable properties.
  • Taxes range from 14% to 60%.
RELATED LEGISLATION
  • Further tax increases in this regard were legislated for by Law 15/2013.
HISTORICAL CONTEXT
  • This law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Customs Law

REFERENCE Law 38/2006
DATE OF PROMULGATION Approved by the People’s Assembly on June 27, 2006
Promulgated by President Bashar Al-Assad on July 6, 2006
RELEVANT PROVISIONS
  • Reforms the administration of the customs regime.
  • In general, custom duties levied on goods entering Syria range from one percent to 30%.
RELATED LEGISLATION
HISTORICAL CONTEXT
  • This Law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Import Tariffs Law

REFERENCE Law 1/1980
DATE OF PROMULGATION Approved by the People’s Assembly on December 29, 1979
Promulgated by President Hafez Al-Assad on January 20, 1980
RELEVANT PROVISIONS
  • Import tariffs are also imposed on goods entering Syria.
  • This surcharge has been amended in recent years but on average, tariffs range from six percent to 35% and in some cases, more than 100%.
RELATED LEGISLATION
HISTORICAL CONTEXT
  • This law dates back to an era preceding the economic and taxation reform processes.

LAW

Consumption Tax Law

REFERENCE Legislative Decree 11/2015
DATE OF PROMULGATION Promulgated by President Bashar Al-Assad on January 28, 2015
RELEVANT PROVISIONS
  • This law imposes taxes on a variety of goods and services ranging between one percent and 20% but can reach up to 60% with respect to automobile sales.
  • Syria does not presently have a formal Value Added Tax regime.
RELATED LEGISLATION
  • Repeals the previous legislation provided for in Legislative Decree 61/2004.
HISTORICAL CONTEXT
  • This law was enacted against the backdrop of internal conflict in Syria, which was having wide repercussions on the state of the economy and the supply of goods and services.

LAW

Inheritance Tax Law

REFERENCE Legislative Decree 56/2004
DATE OF PROMULGATION Promulgated by President Bashar Al-Assad on September 6, 2004
RELEVANT PROVISIONS
  • In addition to inheritance, these taxes also apply to wills and donations.
  • Tax rates range between 6.9% and 75% but could theoretically reach up to 200%.
RELATED LEGISLATION
  • Repeals the previous law contained in Legislative Decree 101/1952.
HISTORICAL CONTEXT
  • This law was passed as part of the package of taxation reforms that were initiated in 2003.

LAW

Stamp Duty Law

REFERENCE Legislative Decree 44/2005
DATE OF PROMULGATION Promulgated by President Bashar Al-Assad on May 6, 2005
RELEVANT PROVISIONS
  • Stamp duty rates range from 0.4% to 0.7%.
RELATED LEGISLATION
  • Amendments to Legislative Decree 44/2005 are contained in Legislative Decree 49/2006.
HISTORICAL CONTEXT
  • This law was passed as part of the package of taxation reforms that were initiated in 2003.