Get Acquainted with Syria’s Updated Income Tax Framework
The Tax Reform Committee, led by Syrian Finance Minister Mohammed Yosr Bernieh, has finalized the essential structure of Syria’s reformed income tax framework.
In a LinkedIn announcement on Tuesday, July 15, the minister indicated that this new tax system is part of a larger initiative aimed at tax reform, emphasizing principles of simplicity, transparency, competitiveness, modernization, support for the private sector, and the encouragement of economic development.
Bernieh highlighted the ministry’s commitment to engaging with business leaders, investors, chambers of commerce, industry representatives, and civil society. He emphasized the importance of building collaborative partnerships.
To facilitate public input on the suggested reforms, the ministry has initiated a consultation phase, which aims to inform the drafting of a new tax law slated to take effect at the start of 2026.
The minister invited feedback and suggestions via a specified email address, with the consultation window remaining open for 15 days, concluding on July 30.
Highlighted Features of the Revised Tax Framework
Minister Bernieh depicted the proposed tax system as modern, straightforward, and easy to navigate. He mentioned that it represents a considerable departure from earlier tax regulations, which will be automatically revoked once the new law is implemented.
This new approach is based on a unified, non-categorical tax model. It introduces a corporate tax that applies uniformly to all business entities and a personal income tax featuring a minimum exemption threshold.
Key attributes include:
- A minimum taxable net income threshold established at the equivalent of $12,000 annually.
- Abolishment of lump-sum income tax classification committees, replaced by standardized taxation for individuals with net income exceeding the $12,000 exemption threshold.
- Enhancement of the personal income tax exemption level to $12,000 yearly, focusing taxation only on higher-income earners.
- 0% income tax on agricultural net income.
- 0% income tax applicable on interest accrued from bank deposits.
- 2% withholding tax on services provided by non-resident individuals.
- 10% tax on net profits in sectors such as industry, education, healthcare, consulting, training, and technology.
- 0% income tax for stock trading and securities transactions.
- 15% income tax on all other sectors, including e-commerce (products and services) and profits derived from intangible assets.
- 10% tax on capital gains.
- Consolidation of various service fees into one unified charge to eliminate redundancy.
- A competitive tax framework and processes designed to align with neighboring countries’ systems.
- Simplified procedures aimed at lessening the burden on taxpayers.
- Transparent and well-defined regulations for tax accounting, applicable to both taxpayers and tax authorities.
- Discounts available on tax obligations for entities participating in social initiatives.
- Streamlined disclosure processes, tailored according to taxpayer classification.
- Integration of e-invoicing for both purchases and sales.
- Recognition of validated expenses, especially those documented via QR codes.
- Emphasis on the role of certified auditors and the implementation of contemporary accounting standards.
- Each taxpayer must provide an income declaration suitable for their classification—either a complete balance sheet or an income statement.
- Any registered business that fails to submit an income declaration will incur a fixed penalty, except for activities exempt from taxation.
- Simplification of tax dispute resolution procedures, focusing on objective fairness, including transferring the burden of proof regarding income sources to the tax authority. Final disagreements will be sent to a dedicated tax court.
- Clear, simplified protocols for appeals and litigation.
- Administrative reforms aimed at enhancing efficiency and upgrading the technical proficiency of financial personnel.
- Complete digitization of tax declaration and auditing processes, leaning on electronic systems.
- A rewards program for compliant taxpayers incentivizing adherence.
- Special measures to address longstanding and accumulated tax obligations in a manner beneficial to both citizens and the state treasury.
In December 2023, during the previous Syrian administration, the Ministry of Finance implemented a decision—under Legislative Decree No. 30—that modified the income tax regulations. This amendment exempted net annual profits of up to SYP 3 million (approximately $300) from taxation.
Profits ranging from SYP 3 million to 10 million (~$300–$1,000) were subject to a 10% tax rate, whereas net profits between SYP 10 million and 30 million were taxed at 14%, according to Syria’s state-run news agency, SANA.
