Tax on Salaries & Wages
Syrian Arab Republic
Ministry of Finance
Income Department
Salaries & Wages Section
Public Notification
We fix hereunder the texts of Articles: 68, 69, 58 and 84 of the Income Tax Law no 24 dated 13/11/203 which determine the percentages and rates for the tax on revenue on current capitals and tax on salaries and wages, as well as minimum exonerated levels and calculation rules, which will be implemented as of 1/1/2004.
A- Regarding income tax on salaries and wages: Article 68 states the following:
The tax average is defined, including the national defense, schools fees, municipality portion and war effort contribution as follows:
- 5% of part of the monthly net income falling between minimum exempted limit and SP. 8000, and of every fixed payment .
- 7% of part of the monthly net income falling between SP 8001 & 12000
- 9% of part of the monthly net income falling between SP 12001 & 16000.
- 11% of part of the monthly net income falling between SP 16001 & 20000.
- 13% of part of the monthly net income falling between SP 20001 & 30000.
- 20% of part of the monthly net income exceeding SP 30000.
Article 68 states the following:
A minimum tax-exempted amount of SP 5000 shall be deducted from the net income monthly.
And article 68 states the following:
All fractions of the Syrian pound shall be offset to the ten pounds higher in all processes of the tax realization and collection of all income taxes, and in all additions and fines that will return to public authorities.
As evident in the above texts, the following should be taken into consideration:
1- There is no need to add any amount on the calculated tax according to the increasing rates as per Article 68, as contribution to national defense since the percentages stated in the a/m Article include the contribution to national defense. This applies to all paid workers including high-ranking staff.
2- The minimum exempted monthly amount is SP 5,000 according to Article 69, to be deducted from the first slice of net monthly income of the taxpayer. The balance of the first slice, i.e. SP 3000 is subject to a tax rate of 5%.
3- The compensations paid to workers, and which are neither constant nor periodic shall be considered as fixed amounts and shall be subject to single tax rate of 5% inclusive of war effort contribution. According to Article 71 of Law 24, such fixed payments are not subject to deduction by any lower limit exempted from tax.
4- According to item (1) of paragraph (B) of Article 70 of Law 24, the monthly contribution to insurance & pension or to social security (according to the case), shall be deducted from the total income, when calculating the net taxable income.
We include hereunder few examples on how to calculate income tax on salaries and wages, as application for the above:
First Example:
assume that the fixed monthly salary is SP 12072 and he worker receives family allowance of SP 850 against wife and 7 children, heating & price adjustment allowance of SP 870, and pays SP 845 for social security (7% of fixed salary).
To calculate the net income, we should:
1- Determine total (not net) monthly income:
o SP 12072, fixed salary, plus
o SP 850, family allowance, totaling
o SP 12922 which is the total monthly income.
2- To determine the net income, social security contribution is deducted from the above total income, as follows:
SP 12922, total monthly income - SP 845, social security = SP 12072, net income.
This net income will be taxed as per Article 68.
3- Tax calculation
Net Monthly Income SP | Tax Rate | Tax Amount | First slice 8000 – 5000 (min limit exempted) = 3000 | 5% | 150.00 | Second slice = 4000 | 7% | 280.00 | What falls within 3rd slice of net income = 77 | 9% | 6.93 | Total net income = 12077 | Total tax | 436.63 |
According to Article 58 of Income Ta law, the tax is rounded up to SP 440. It is worth mentioning that heating and price adjustment allowances are not subject to any deduction whatsoever including income tax, according to Article 4 of Law 65 dated 26/11/1980.
Second Example
Assume that fixed monthly wage is SP 4864 and the family allowance is SP 650 for wife and two children. The heating allowance is SP 870 and social security contribution is SP 340.
Following the above steps, we find:
1- Total monthly income
SP 4864 fixed salary + SP 650 family allowance = SP 5514, total salary.
2- Taxable net income
SP 5514, - SP 340, social security = SP 5174 , taxable income.
3-Tax calculation
Tax SP | Tax Rate | Net Monthly Income (SP) |
| - | - | Lower taxable limit 5000 | First Slice | 8.70 | 5% | 174 over the lower taxable limit | 8.70 | - | 5174 | Total |
According to Article 58 of the Income Tax law, the tax is rounded up to SP 10.
Please take note and apply on salaries and wages effective as of January 2004.
B- Regarding income tax on revenue of current capitals, here is Article 84 of Income Tax Law stipulating the rate, starting 1/1/2004:
Article 84:
The average of the tax on the current capitals revenues shall be defined by 7.5% ( including the additions of the national defense, schools fees, municipalities portion, war effort contribution ) other than the addition of the local administration fees.
According to the above text, there is no need to add any amount for war effort contribution to the tax calculated as per Article 84, since the latter is inclusive of war effort contribution. Only the Local Administration Levy is added to the calculated tax. It is necessary to apply the provisions of Article 58 regarding rounding up amounts in tax calculation to the highest SP 10 and similarly to local administration levy.
Please take note and apply on the relevant taxables starting 1/1/ 2004.
Damascus on 26/12/2003
Minister of Finance
Mohamed Al Hussein
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