Taxation Law

Income Tax Law

• 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%.

• 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.

• 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.

Tax Evasion Law

• Threatens fines and imprisonment for individuals that attempt to evade their tax liabilities.

• 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.

• 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.

Real Estate Fees Law

• The Real Estate Fees Law determines the fees payable for the registration of real estate transactions on the basis of valuations commissioned by the Ministry of Finance.
• It also sets the conditions for any potential exemptions from the fees, which are collected by the General Directorate of Real Estate Interests. The body is affiliated to the Ministry of Local Administration and the Environment, and oversees the Land Registry.
• Among other items, the Law is concerned with the payment of transfer fees by buyers of real estate properties who intend to register their names on the title deeds at the Land Registry after entering into sale and purchase agreements with the sellers of the respective units.
• The provisions of the Law stipulate for the imposition of a five percent stamp duty and a 10% local administration fee on the amount of the respective real estate transaction fee in addition to the fee itself. Like the Real Estate Sales Tax Law, it aims to increase revenues.

• The Real Estate Fees Law 17/2021 repeals and replaces Law 429/1948.

• The Real Estate Fees Law 17/2021 was issued during a severe economic crisis in Syria.

Real Estate Sales Tax Law

• Comes into force on May 3, 2021.
• Comprised of 21 articles and its executive regulations will be issued by the Minister of Finance.
• Imposes a sales tax on the actual market value of a property as opposed to outdated and diminished figures from the 1980s. Property appraisals will be organized by government committees and reflect current rates.
• A one percent tax will be imposed on sales of residential properties, two percent on sales of lands in zoned areas, one percent on sales of lands outside zoned areas, three percent on sales of non-residential properties, and one percent on sales of residential roof properties.
• Taxpayers who object to the levy may formally do so within a 30-day period provided that they first pay the tax and a deposit amounting to one percent of the taxable amount, which are refundable if the objection is upheld by the Council of State Administrative Court.
• Non-residential properties leased to Syrians and foreign nationals are subject to an income tax of 10% of the annual rent while residential properties leased to Syrians and foreign nationals are subject to an income tax of five percent of the annual rent.

• Repealed and replaced the previous Real Estate Sales Tax Law 41/2005 and its amendments contained in Legislative Decree 52/2006.
• The previous Real Estate Sales Tax Law 41/2005 contained amendments to the Income Tax Law 24/2003.

• The Real Estate Sales Tax Law 15/2021 was issued during a severe economic crisis in Syria.

Property Income Tax Law

• Taxes income generated from various types of immovable properties.
• Taxes range from 14% to 60%.

• Further tax increases in this regard were legislated for by Law 15/2013.

• This law was passed as part of the package of taxation reforms that were initiated in 2003.

Customs Law

• Reforms the administration of the customs regime.
• In general, custom duties levied on goods entering Syria range from one percent to 30%.

• This Law was passed as part of the package of taxation reforms that were initiated in 2003.

Import Tariffs Law

• 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%.

• This law dates back to an era preceding the economic and taxation reform processes.

Consumption Tax Law

• 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.

• Repeals the previous legislation provided for in Legislative Decree 61/2004.

• 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.

Inheritance Tax Law

• 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%.

• Repeals the previous law contained in Legislative Decree 101/1952.

• This law was passed as part of the package of taxation reforms that were initiated in 2003.

Stamp Duty Law

• Stamp duty rates range from 0.4% to 0.7%.

• Amendments to Legislative Decree 44/2005 are contained in Legislative Decree 49/2006.

• This law was passed as part of the package of taxation reforms that were initiated in 2003.