Essential Guide to Business Taxation in Syria

Published on 16 May, 2025 By: admin

Understanding the tax system is crucial for any business operating in Syria. This comprehensive guide outlines the key aspects of Syria's business taxation framework and provides essential information for investors and business owners.

Corporate Income Tax

Syria applies a progressive corporate income tax structure with rates ranging from 10% to 28% depending on the type of business, sector, and income level. Certain sectors like agriculture and manufacturing may qualify for reduced rates or exemptions under specific conditions.

Value Added Tax (VAT)

Syria operates a value-added tax system with a standard rate of 10% applied to most goods and services. Certain essential items may be taxed at lower rates or exempted. Businesses with annual turnover exceeding the registration threshold must register for VAT.

Withholding Taxes

Various withholding taxes apply to different types of payments:

  • Dividends: 7.5% for residents and non-residents
  • Interest: 7.5% (subject to certain exemptions)
  • Royalties: 15% when paid to non-residents
  • Services fees: Variable rates depending on the service type

Tax Incentives

The Syrian tax system offers various incentives to encourage investment:

  • Tax holidays for new industrial projects
  • Reduced rates for businesses in development zones
  • Exemptions for certain exported goods
  • Accelerated depreciation allowances
  • Carry-forward of losses for up to five years

Tax Compliance

Tax compliance requirements include:

  • Annual corporate tax returns (typically due within 120 days after the end of the fiscal year)
  • Quarterly advanced tax payments
  • Monthly or quarterly VAT returns depending on turnover
  • Employee income tax withholding and social security contributions

Tax Planning Strategies

Effective tax planning in Syria might include:

  • Selecting optimal business structures to minimize tax burden
  • Taking advantage of available incentives and exemptions
  • Proper documentation of expenses to ensure deductibility
  • Strategic timing of investments to maximize tax benefits

How We Can Help

At Syria Invest Gate, our tax specialists can assist you with:

  • Tax registration and compliance
  • Tax planning and optimization
  • Preparation and filing of returns
  • Representation during tax audits
  • Applications for tax incentives and exemptions

Contact our tax advisory team for personalized guidance tailored to your specific business needs.

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