Individual income tax rates in Syria are progressive to 22%.
Monthly earning range Tax rate
Income up to SYP 6,000 ($131 per month or $1,560 per year) is exempt from tax.
Basis - An individual is liable for Syrian tax on income arising from sources or activities in Syria, regardless of his/her residence status in Syria. Income derived from non-Syrian sources or activities are not taxable in Syria. Wages and salaries tax is imposed on individuals who derive income (1) from a private treasury if they are Syrian residents or if the amount paid is for compensation of rendered services; or (2) from a public treasury, regardless of their residence status in Syria.
Residence - The following are considered Syrian residents: a national of Syria or an Arab or foreign person legally residing in Syria.
Tax Filing status - Each individual must file his/her own return; joint filing is not permitted.
Taxable income - Gross income is based on the actual amount of salaries, special assigned amounts, returns, wages, compensations and bonuses and all monetary utilities or in kind utilities.
Capital gains - There is no specific capital gains tax for individuals. Tax is paid on the sale or disposition of property at rates that vary depending on the type of transaction.
Tax Deductions and allowances - Individuals may deduct certain expenses (i.e. work travel and other business expenses).
Other taxes on individuals:
Capital duty - No
Stamp duty - Stamp duty is generally imposed on the execution of documents, licenses, contracts, etc., at rates ranging from 0.4% to 0.7%.
Capital acquisitions tax - No
Real property tax - Tax on real estate proceeds (estimated rent amount) ranges from 14% to 60%, depending on the type of property.
Inheritance/estate tax - Inheritance and gift tax ranges from 5% to 75%.
Net wealth/net worth tax - No
Social security - An employee's share of the social security contribution is 7% of basic salary.
Syria Tax year - Syria tax year is the calendar year
Filing and payment of tax - Individuals must submit an annual return by 31 March and pay any tax due at that time.
Penalties - A penalty is assessed for late payments 30 days after the filing date and may be imposed up to 100% of the tax liability.
The corporate tax rates in Syria are progressive between 10% to 28%.
Specific tax rates apply to certain businesses:
. 22% for joint stock companies
. 14% for joint stock companies and insurance companies which have 51% of their shares offered to the public
. 25% for private banks and insurance companies
Surtax: A local administration tax is imposed which varies between 4%-10% depending on the region.
Residence - The following entities are considered Syrian residents: an entity whose principal activities are administered through Syria, an entity that adopts the Syrian Arab Republic as its headquarters and branches or offices of foreign companies that operate in Syria.
Basis - An entity is liable for Syrian tax on income arising from Syrian sources or activities, regardless of residence status. Income derived from non-Syrian sources or activities is not taxable in Syria.
Taxable income - Income tax applies to the profits of companies, including the disposal of business assets.
Taxation of dividends - Dividends paid by Syrian corporations on previously taxed income are not subsequently taxed upon distribution to a recipient company. If paid by nonresident corporations, dividends are subject to taxation upon distribution in Syria at a rate of 7.5%.
Taxation of Capital gains - Capital gains of companies are included in taxable income and taxed at the normal rate.
Losses - Losses may be carried forward for 5 years. The carryback of losses is not permitted.
Surtax - A local administration tax is imposed that varies between 4% and 10%, depending on the region.
Alternative minimum tax - No
Foreign tax credit - No
Participation exemption - No
Holding company regime - No
Tax Incentives - Incentives are granted under the investment laws, in free zones, for certain industrial projects and for tourism.
Dividends - Dividends paid by Syrian corporations from previously taxed income are exempt from taxation upon distribution.
Interest - Interest paid to a nonresident is subject to a 7.5% withholding tax.
Royalties - Royalties paid to nonresidents are subject to a 5% withholding income tax, as well as a 2% withholding payroll tax.
Branch remittance tax - No
Other taxes on corporations:
Capital duty - Upon an initial public offering or a subsequent capital increase, tax must be paid to the Syrian Commission on Financial Markets and Securities. The tax is calculated as the sum of SYP 250,000 plus 0.1% of the publicly issued capital, to a maximum of SYP 1 million. Additionally, a stamp fee of 0.5% of the capital must be paid upon the establishment and registration of the corporation. The stamp fee is reduced by 50% if the company offers more than 50% to the public.
Payroll tax - A withholding tax of 5%-22% is withheld by the employer.
Real property tax - Tax on real estate ranges from 14% to 60% depending on the type of property.
Transfer tax - Transfer tax varies according to the nature of the property and the type of ownership transfer.
Social security contributions - Employers are required to make social insurance contributions amounting to 14% of their payroll costs to cover old age, disability and death benefits. Additionally, employers must contribute 3% of their payroll to the work injury benefits scheme and 0.1% to a lump-sum disability benefits fund. Hence, the overall employer contribution to social security is 17.1%.
Stamp duty - Stamp duty is generally imposed on transactions such as the formation of corporations (see under "Capital duty"), the execution of documents, licenses, contracts, etc., at rates from 0.4% to 0.7%.
Transfer pricing - No
Thin capitalisation - No
Controlled foreign companies - No
Disclosure requirements - No
Syria Tax year - Syria tax year is calendar year
Consolidated tax returns - Consolidated returns are not permitted; each company must file a separate tax return.
Tax Filing requirements - Tax returns must be filed by 31 May for limited liability and joint stock companies; the deadline for other types of companies is 31 March. Payment is due within 30 days of the filing deadline. Payroll withholding tax must be submitted by the employer on a semi-annual basis.
Penalties - A penalty is assessed for late payments 30 days after the filing date at a rate of 10% annually, up to 30% of the tax liability.
While there is no VAT in Syria, consumption taxes are imposed on certain services and imported luxury goods.
Rates - 1.5% to 40%
Registration - Taxpayers are required to register for VAT purposes.
Filing and payment - Tax is withheld by the party providing the service or Customs (for imported services) and paid on a monthly basis to the Ministry of Finance.
VAT in Syria
The Ministry of Finance has previously announced that the tax will be levied at a flat rate of 10%. It will replace 12 other taxes currently imposed, including the consumer tax. Despite the last IMF report stating that Syria was on track to having a VAT up-and-running by 2011, Jamal Madlaji, director-general of the General Commission for Taxes and Fees (GCTF), said no introduction date has been set. "There is no set date for introducing the tax as we do not want to rush things," Madlaji said. "It would be disastrous and pointless to launch the tax before the conditions are right."
Income Tax Rate
Corporate Tax Rate
Sales Tax / VAT Rate
possible future rate
not introduced yet
Last Update: Nov 2010
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BOSNIA & HERZEGOVINA
BRITISH VIRGIN ISLANDS
CENTRAL AFRICAN REP.
CONGO, DEM. REPUBLIC
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