FAQ

Yes,the investor can own and rent land and property necessary to set up their new investment or expansion, even if the area owned exceeded the limits set by any other laws and regulations under the Article 2/a of the investment encouragement Decree No.8 of 2007.

Yes, anything owned by investments and any revenue gained enjoys protection from expropriation, confiscation and fallsunder the Reduction Act, unless it is for public use, in which case the investor will receive suitable, fair compensation, equal to the general value of the investment right before the expropriation in a transferable currency with the foreign fund, and with reservation to the rules and regulations of taxation law No.341 of 1956, where there is no way to expropriate anything without a court decision under Article 3 of the investment encouragement Decree No.8 of 2007

Yes, both the investor and his family members can obtain work permits and settlement status for the duration of executing and implementing the project under Article 4 of the investment encouragement Decree No.8 of 2007

Yes, the investor shall have the right to re-transfer the outcome of his/her shares in the project in a convertible currency under Article 4 of the investment encouragement Decree No.8 of 2007

Yes, the investor shall have the right to annually transfer abroad profits and interests resulting from the invested foreign capital in a convertible currency, also s/he is able to retransfer the foreign capital abroad after 6 months of he entered it and difficulties or undue influence, Arab and foreign experts, workers and technicians working for any licensed project shall have the right to transfer 50% of their net wages, salaries and bonuses abroad, and 100% of their end-service allowances, in a convertible currency, depending on the Article 5 of the investment encouragement Decree No.8 of 2007

Yes, investors shall have the right to import and take back special tools used for implementing investment assets under Article 5/f of the investment encouragement Decree No.8 of 2007.

Yes, under provisions for international, bilateral and multilateral investment, and investment guarantee agreements in Syria which have been signed with other countries, organizations, both Arab and international, and the investor shall have the freedom to insure investments at any licensed insurance company in Syria under Article 6 of the investment encouragement Decree No.8 of 2007.

Article 7 of the investment encouragement Decree No.8 of 2007 states that Investment-related disputes between the investor and Syrian public bodies and institutions shall be settled amicably. If the parties in disagreement cannot reach an amicable solution within three months from the date of writing notice for an amicable settlement, which may be made by one of the disputing parties, each of them shall have the right to take the case to one of the following ADR means:

1- Arbitration.

2- Competent Syrian Courts.

3- The Arab Investment Court formed under the Allied Treaty for Investment of Arab Capitals in the Arabic Countries in the year 1980.

4- The Investment Insurance and Protection Agreement signed by Syria and the investor’s country, or any Arab or international organization.

All investment-related disputes shall be considered by the competent court as summarised proceedings.

In accordance with Article 8 of the Investment Encouragement Decree No. 8 of 2007, the following sectors and activities may enjoy the incentives and Guarantees:

  • Agricultural and Land Reclamation projects.
  • Industrial projects.
  • Transport projects.
  • ICT projects.
  • Environment projects.
  • Service projects.
  • Electricity, Oil and Mineral Wealth projects.

Any other enterprise which the Supreme Council decides to cover with a proposal by the Board

projects shall have the right to import everything they need, without being restricted by the provisions of import suspension, prohibition or restriction, and the direct import from the country of origin system and exchange system provisions according to Article 9 of the Investment Encouragement Decree No. 8 of 2007

Contrary to any enforced law, the imported assets shall be exempt from customs duties, including machines, tools and equipment used in the production process and the non-family transportation means, according to the Article 9 of the Investment Encouragement Decree No. 8 of 2007

In accordance to the decision of Mr Prime Minister(82/h) date 31/8/2010, the developing regions in Syria were categorized in four areas depending on the value of the project’s assets as follows:

  1. The first developing area includes (Damascus, Rural Damascus, Aleppo)The minimum limit for the value of the assets is SYP 50 m.
  2. The second developing area includes (Lattakia, Tartous, Homs, Hama)The minimum limit for the value of the assets is SYP 30 m.
  3. The third developing area includes (Dar’a, Swaydaa, Qunaytera, Idleb )The minimum limit for the value of the assets is SYP 20 m.
  4. The fourth developing area includes (Deir ezzour, Arraqqa, Alhassakeh )The minimum limit for the value of the assets is SYP 10 m

Based on the Article 8 of the investment encouragement Legislative Decree No.8 of 2007 investment projects shall enjoy exemptions mentioned in the Income Tax Legislative Decree of 2006, and its amendments and in all benefits and guarantees specified on it in this Legislative Decree as follows:

The projects licensed under the investment encouragement Decree No. 8 are granted a levy dynamic deduction for the duration of the whole Project life as the Income Tax Decree No. 51 of 2006 has specified:

A- The tax shall be imposed on the net profits according to the following rates, in addition to the National Defense charges, Schools fees, the Municipal portion and the contribution to support the continual development except the Local Administration fees:

– 10% on the part of the net profit between the exempted minimum limit and SYP200.000.

– 15% on the part of the net profit exceeding the SYP200.000 limit and less than SYP 500.000.

– 20% on the part of the net profit exceeding the SYP500.000 limit and less than SYP1.000.000.

– 24% on the part of the net profit exceeding the SYP1.000.000 limit and less than SYP3.000.000.

– 28% on the part of the net profit exceeding the SYP3.000.000 limit.

B − The income tax is imposed on the net profits achieved by joint-stock companies, whose shares are placed on the market for underwriting at a percentage no less than 50% in both Public and Private Sectors, of which its main office is in Syria with all of its activities at a rate of 14%, including all the additions, and is exempted from the additions for the sake of the Local Administration

C – The income tax is imposed on the net profits achieved by LLC’s and shares companies whose main offices or branch are located in Syria in both Public and Private Sectors for all of its activities and projects licensed under the encouragement Decree at a rate of 22%, including all additions and is exempted from the additions for the sake of the Local Administration

– All Tax rates mentioned in the Article 3 of this Legislative Decree are reduced according to the following basis:

A- 2 degrees for the industrial projects established in the remote areas.

B- 1 degree for the industrial projects which legally employ 25 workers or more duly registered with the National Insurance Scheme, this reduction becomes 2 degrees for the industrial projects which legally employ 75 workers or more who are duly registered with the National Insurance Scheme and becomes 3 degrees for the industrial projects which legally employ 150 workers or more duly registered with the National Insurance Scheme.

C- 1 degree for the industrial projects established within the industrial cities.

D- 2 additional degrees of deduction shall be granted to the following projects:

– All licensed industrial projects under the provisions of the Legislative Decree No.8 of 2007 in the industrial cities of Hesya and Deir Ezzor.

– The Electricity Generating Stations, the substitute energy resource projects and fertilizer factories.

E – 2 degrees if any of the following is available:

– Industrial projects which depend on local raw materials for its production, which are described in a regulatory decision issued by the Minister of Finance in cooperation with the Ministry of Industry.

–  The industrial projects which save the energy consumption, which are described in a regulatory decision issued by the Minister of Finance in cooperation with the Ministry of Electricity.

– The industrial projects which use tools, methods and machinery, which protect the environment and which are described in a regulatory decision issued by the Minister of Finance in cooperation with the Ministry of Local Administration and Environment.

– The industrial projects which export 50% of their production, which are  described in a regulatory decision issued by the Minister of Finance in cooperation with the Ministry of Economy

the previous licensed investments under Law 10 of 1991 and its amendments can continue enjoying the tax exemptions and benefits obtained until its last exemption period according to the Article 13 of the Legislative Decree No.8 of 2007