The Syrian Minister of Finance Announces a New Income Tax Law Project
The Syrian Minister of Finance, Mohammad Yaser Barnieh, announced the completion of the preparation of a new income tax law project, as part of a plan aimed at establishing the foundations of a "transparent, fair, competitive, and simplified tax system".
The announcement by Minister Barnieh came through a post on the "LinkedIn" platform, where he saw that the project represents part of the ministry's efforts to transform from a "ministry of collection and oppression to a ministry of development, construction, and partnership".
To ensure the comprehensiveness of the vision, the Syrian news agency "SANA" reported that the draft law has been put out for public consultation, to receive comments and suggestions on it for a period of twenty-one days via the designated email.
The minister revealed the main features of the law, which offers a package of incentives, as it establishes a low tax on income from employment and a competitive tax on income from business, after deducting an appropriate exempt threshold for both and for two categories.
The broad tax exemptions in the new law include the absence of tax on the relinquishment of company shares and the differences resulting from the revaluation of fixed assets. The law also exempts bank deposit returns, non-operating foreign companies, and local exports of goods and services.
The minister added that the exemptions also extend to include the agricultural sector and its associations, nurseries, and people with disabilities, as well as profits from shares and stocks, in addition to institutes and centers for people with special needs.
Alongside the tax incentives, the law pays attention to protecting taxpayers by setting an appropriate exempt income threshold, and another exempt threshold for dependents that each partner in the company can benefit from, in addition to granting a special tax deduction for donations in the field of social responsibility.
The fundamental reform in procedures also included the establishment of a special tax court and organizing procedures for the seizure of funds within narrow controls. The law represents a shift in the punitive philosophy by abolishing prison sentences and replacing them with financial penalties, and opening the door for reconciliation for violations under specific conditions.
