Throughout the past few years, Ministry of Finance has accomplished a large-scale plan to reform the tax system in the country.
A number of laws and decrees were issued to restructure taxes and achieve all-out taxation reforms that targeted almost all categories of the Syrians, starting from individuals and employees and up to traders, industrialists and businessmen. The Ministry has turned from a tax collection body as previously described into an active institution that plays an effective role in strengthening national economy and creating encouraging climates for local, Arab and foreign investments. Click more
Throughout the past few years, the Finance Ministry has accomplished a large-scale plan to reform the tax system in the country.
A number of laws and decrees were issued to restructure taxes and achieve all-out taxation reforms that targeted almost all categories of the Syrians, starting from individuals and employees and up to traders, industrialists and businessmen. The Ministry has turned from a tax collection body as previously described into an active institution that plays an effective role in strengthening national economy and creating encouraging climates for local, Arab and foreign investments.
Among the prominent legislations are:
- Law No.24 of 2003. It decreased taxes on trade and capital profits as well as on salaries and wages.
- Law No.25 of 2003 on tax evasion has contributed a great deal to re-organizing taxes and restructuring the taxation system with a view to avoiding evasion, maintaining confidence of tax payers and achieving justice.
- Decree No.52 of 2004, which cancelled taxes on imported machinery, has contributed to easing burdens on industrialists.
- Decree No.56 of 2004 cancelled duties on wills, gifts and contributions. It encouraged the return of the capital by Syrian expatriates and urged industrial installations to go on carrying activities after the death of their owners.
- The 2004 Law No.39 on realty renting has decreased taxes on non-Syrian proprietors from 48% to 18%.
- Decree No.18 of 2004 cancelled duties on cattle.
- The 2004 Decree No.51 exempted commercial invoices and certificates of origin pertinent to imported Arab products from the fees of consular certification.
- Decree No.44 of 2005 decreased stamp duties imposed on contracts, bills and financial documents.
- The 2005 Law No.41 was an evolution in tackling costs of realties and capital profits as taxes were largely decreased.
- Decree No.404 of 2005 amended customs duties on textile industries and electronic TV equipment.
- Decree No.494 of 2005 also amended customs duties on food and agricultural industries.
- Decree No.56 of 2006 provided for exempting poultry farms from the income tax levied on 2005 activities.
- The 2006 Decrees Nos.76 and 229 amended customs duties on materials of chemical and engineering industries as well as on vehicles and ships.
- Decree No.1 of 2007 provided for amending annual duties on private cars.
On the other hand, Ministry of Finance succeeded in achieving a comprehensive restructures of the customs tariffs and in decreasing duties on raw materials and basic production requirements.
It has issued the state’s finance law, which regulates all activities of the government’s financial sector and unifies management of the government’s expenditure in one institution represented by the Ministry.
It was able -in terms of concluding cooperation agreements with several foreign countries- to settle debts and close files once and for all.
Moreover, Ministry of Finance succeeded in compensating the decrease in oil revenues by keeping the deficit in the state budget below 5% of the country’s Gross Domestic Product. A number of legislations were modernized to reactivate the financial, monetary, customs, banking and insurance sectors.
The modernization of tax legislations has in fact positive impacts on the entire socio-economic activities in the country and on the whole Syrian market that has notably been boosting in recent years despite tough circumstances inside and outside the country.
