Syria’s Minister of Finance, Muhammad Yasar Barania, has announced the completion of a new draft income tax law. The legislation is part of a broader plan to establish a tax system that is transparent, fair, competitive, and simplified, marking a significant shift in the country’s fiscal strategy.
A Shift in Fiscal Policy
The Minister stated that the new law aims to transform the Ministry of Finance from a punitive collection agency into a partner in national development and construction. The goal is to create a more business-friendly environment that encourages growth and investment.
Key Tax Exemptions Announced
The draft law introduces a wide range of exemptions designed to stimulate various sectors of the economy. According to the announcement, there will be no income tax on:
- Returns and interest from bank deposits.
- Profits from the sale of company shares and stocks.
- Gains from the revaluation of fixed assets.
- Income of non-operational foreign companies.
- Revenue from the export of local goods and services.
- The agricultural sector and its associated cooperatives.
- Child care centers and institutions for people with special needs.
The law also establishes a new, appropriate income exemption limit for individuals and an additional exemption for dependents.
Modernizing Tax Administration
The proposal includes significant reforms to modernize the tax system and increase transparency. Key changes include:
- The formal adoption of electronic invoicing.
- Simplified and transparent audit procedures using an advanced electronic system for sample selection.
- The establishment of a special tax court to handle disputes.
- Shifting the “burden of proof” in tax disputes from the taxpayer to the tax administration.
- Replacing prison sentences for tax violations with financial penalties and introducing reconciliation options.
Public Consultation Period
The draft law has been released for public consultation. Stakeholders and the public have a 21-day period to submit their feedback and proposals via a dedicated email address, ensuring a collaborative approach to finalizing the legislation.
Source: Al Arabiya Business
