Corporate Tax in Syria

Syria's corporate tax system features a standard rate of 22%, with higher rates for financial institutions (28%) and a reduced rate for agriculture (10%). A minimum tax of 1% of gross turnover applies to companies reporting losses.

Corporate Income Tax Rate

The standard corporate income tax rate in Syria is 22% of taxable profits. Special rates apply to specific sectors:

• Banks, Insurance, and Financial Institutions: 28%
• Agriculture: 10%
• Other Sectors: 22%

Minimum Tax

Companies reporting tax losses are subject to a minimum tax of 1% of gross turnover. This ensures that even loss-making companies contribute a baseline amount of tax.

Taxable Income

Taxable income is calculated as gross revenue minus allowable deductions. The tax year follows the calendar year. Companies must maintain proper accounting records.

Deductible Expenses

• Operating expenses directly related to business activities
• Depreciation of fixed assets
• Interest expense
• Rent and lease payments
• Employee salaries and social security contributions
• Professional fees and consulting costs

Non-Deductible Expenses

• Fines and penalties
• Dividends distributed
• Capital expenditures (must be depreciated)
• Personal expenses of shareholders

Filing Requirements

• Annual Tax Return: Due within three months of the end of the tax year
• Monthly Withholding Tax: Due by the 15th of the following month
• Annual Financial Statements: Must be filed with the tax return

Withholding Taxes

Companies are required to withhold tax on certain payments:

• Dividends: 7.5% (residents), 15% (non-residents)
• Interest: 7.5%
• Royalties: 15%

Important Note

These rates are pre-war legal rates, still on the books. Syria's economy has been severely impacted by civil war. Actual tax collection is limited in many areas.