Tax laws Syria
Syria's taxation system has undergone significant changes, especially in regions outside the control of the former Assad regime. The Autonomous Administration of North and East Syria (AANES), also known as Rojava, introduced its own taxation policies starting in 2017. Key aspects of these developments include:
1. Income Tax in Rojava:
Implementation: In July 2017, the Jazira Region of Rojava became the first to introduce an income tax system.
Taxable Income: Individuals earning above 100,000 Syrian pounds per month (approximately $200 at that time) are subject to this tax.
Tax Rates: The tax rates range from 1.5% to 40%, depending on income levels.
2. National Income Tax Law:
Law No. 24 of 2003: This law imposes taxes on net profits from various sources, including industrial, commercial, and non-commercial activities, as well as salaries and wages.
Executive Instructions: Detailed guidelines for implementing this law were issued in 2004, providing clarity on taxable entities and procedures.
3. Consumption Taxes:
- Registration and Filing: Businesses are required to register for consumption tax purposes. Taxes are withheld by the service provider or customs for imported services and are paid monthly to the Ministry of Finance.
4. Social Security Contributions:
Employer Contributions: Employers contribute a total of 17.1% of an employee's salary to social security, which includes:
14% for old age, disability, and death benefits.
3% for work injury benefits.
0.1% to a lump-sum disability benefits fund.
5. Recent Economic Developments:
Tariff Reductions: Following the overthrow of Bashar al-Assad, the new government led by Hayat Tahrir al-Sham (HTS) reduced import tariffs. While this made foreign goods more accessible, local producers struggled to compete with cheaper imports, leading to business closures and economic challenges.
Economic Growth in Idlib: Idlib has emerged as a model city under HTS rule, experiencing economic revival with reduced taxes and customs duties attracting businesses and visitors. However, this progress coexists with political repression and human rights concerns.
It's important to note that the taxation system in Syria is complex and varies significantly between regions controlled by different authorities. For the most accurate and current information, consulting local tax authorities or legal experts familiar with Syrian taxation is recommended.
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