FAQ

Investment Law No. 18 of 2021 canceled the provisions of Legislative Decree No. /8/ of 2007, but in return maintained the continuity of any existing or under implementation project that was created in accordance with the provisions of Legislative Decree No. /8/ of 2007 or Law No. /10/ of 1991 or the provisions of the Council’s decisions The Supreme Council for Tourism, by benefiting from the advantages, incentives and discounts granted to him and according to the conditions stipulated therein.

The following categories benefit from the provisions of the law, who have obtained an investment license:

The Syrian and non-Syrian investor, whether natural or legal, who undertakes an investment activity on his own property, or on private state property, according to the classifications of investment projects contained in the procedures manuals.

Joint venture companies, whether established before or after the enforcement of the law, which establish projects in accordance with its provisions.

Investment projects that are carried out on the private property of public entities using the method of investment without leasing, and are not subject to the partnership law and fall within one of the classifications contained in the procedures manuals.

Projects in the following sectors enjoy the incentives, exemptions, benefits and guarantees stipulated in the law, which are the agricultural sector – the industry sector – the communications and technology sector – the environment sector – the services sector – the electricity sector – the oil and mineral wealth sector – the housing and real estate development sector – the tourism sector – the health sector

The activities that fall within the mentioned sectors are determined according to the procedures manuals approved by the Board of Directors and the minimum value of fixed assets approved by the Board.

1-Submission of an application by the person concerned or his legal representative to the investor services center in the Authority and its branches, according to each sector, fulfilling all data and information according to the form approved by the Authority and the Board of Directors, and attached to the following documents and evidence:
-An economic and technical feasibility study for the project.
-A list of requirements for the assets required for the project, including buildings, machinery, tools, equipment, production lines, and non-tourist means of transportation, as the case may be, including any needs necessary for the development, modernization, or expansion of the project.
-Duration of the project.
-The timetable for establishing the project, including the expected start-up date.
-Project documents implemented by the investor locally and abroad, if any.
-Permission to view the law, instructions and procedures guides, and his responsibility for the validity of the data contained in the application.
-The legal agency (power of attorney of a notary public) for the applicant.
-A copy of the investor’s ID card or the foreign investor’s passport.
-A real estate registration statement for the investment property.
-Receipt of payment of investment leave service allowance.
-Any other document required by the concerned authority according to the type of activity, as determined by the procedures manual.
2-The application is considered after it is signed by the owner or his legal representative, and the required data, documents and papers are completed.

Investment in the Syrian Arab Republic is governed by the following principles:

A- Ensuring the stability of the investment promotion policy in the country.

B – Freedom of investment and combating monopolistic and anti-competitive practices.

C- Equity in granting investment opportunities and dealing with them.

D- Speed and quality in completing investor transactions, and simplifying procedures.

E- Taking into account aspects of social dimension, environmental protection and public health.

The investor is committed to the following:

A- Inform the Agency in the event of assigning to others a share equal to or exceeding 10% of the project’s capital. However, if the law governing work in the sector in which the project is located provides for special controls for assigning ownership, the assignment in this case is subject to the provisions of the relevant private law and the Damascus Securities Market Law in case the company is listed on the market.

B- Informing the Agency in writing of the date on which the project will commence work, and the actual investment costs.

C- Insurance of the project with one of the insurance companies operating in the Syrian Arab Republic.

D- Keeping project accounts in accordance with international accounting standards, and providing the Ministry of Finance with a copy of the final financial statements after approval by a certified external auditor.

E – Paying the due taxes and fees and all financial costs incurred by the project in accordance with the laws in force, in a manner that does not conflict with the provisions of this law.

F- Providing any information, data or documents requested by the Agency without prejudice to the rights of intellectual property protection.

according to articles /20-21-22/ from the investment law no/18/ year/2021/

 Customs incentives:

A- Imports of machinery, equipment, production lines, and non-tourism service means of transport for projects that obtain an investment license are exempt from all customs, financial and non-tariff additions, provided they are used exclusively for the purposes of the project, and the investor must pay all these liabilities if they are used for other than the purposes of the project or assign them to others before the end of its specified useful life according to international accounting standards.

B- Imports of building materials, tools, equipment, machinery, non-tourist service transportation, and furniture that is necessary for the construction, equipping, furnishing and operation of tourist complexes, hotels and tourist accommodation facilities of international level first and second class, and restaurants, entertainment facilities and tourism services in which they are invested, with the exception of commercial shops, shall be exempt from all customs and financial fees and non-tariff additions, provided that the value of imports does not exceed:

1- 50% of the estimated investment costs for international and premium class establishments.

2- 30% of the estimated investment costs for first and second class establishments, provided that there is no equivalent in local production.

3- 30% of the estimated investment costs for the rehabilitation of damaged establishments by a decision of the Supreme Investment Council.

Tax incentives:

A- Agricultural and livestock production projects benefit from permanent tax exemption of 100% of income tax.

B – The projects which are established in the development zones and that are located within the sectors targeted for development, according to what the Council determines in the decision to create these zones, will benefit from a tax reduction of 75% of the income tax for a period of / 10 / years starting from the date of the commencement of operation.

C- Projects established outside the development and specialized areas benefit from tax incentives, starting from the date of the commencement of operation, as the following:

A tax reduction of 75% of income tax for a period of / 10 / years for: 1-

Industrial projects that export 50% or more of their production capacity.-

-Tourist complexes, hotels and tourist accommodation facilities of international, first and second class levels, restaurants and entertainment facilities which are invested within  them, with the exception of shops.

2- A tax reduction of 50% of income tax for a period of / 10 / years for:

Industrial projects that use a local component percentage of not less than 50%.-

Industrial projects that produce an added value of not less than 40%.-

Projects with high technical content. –

Medical industrial projects, human and veterinary medicines.-

Renewable energy projects.-

Waste recycling projects using environmentally friendly technologies.-

Agricultural and animal industrialization projects. –

Industrial projects based on Patent investment.-

Facilities for sorting and packing agricultural products.-

Craft installations.-

D – The projects that are established in the specialized areas benefit from a tax reduction of 50% from the income tax for a period of / 10 / years, starting from the date of commencement of operation.

E – The projects mentioned in Paragraph / C / of this Article benefit from an additional tax deduction for a period of five years amounting to 5% for every 100 Syrian workers participating in the General Organization for Social Insurance, provided that the tax deduction does not exceed 15%.

F – Industrial projects that are used to establish the project, used or refurbished machinery, equipment and production lines that were previously placed for domestic consumption prior to the date of submitting the application for an investment license shall not benefit from the exemptions mentioned in this article.

G- Expenses that aim to achieve social responsibility are considered among the expenditures that can be deducted from taxable profits. These expenditures and the basis for their acceptance are determined by a decision of the Board based on the proposal of the Ministry of Finance, provided that these expenditures must not exceed 3% of the total profits in any case.

H- The tax exemptions mentioned in this law shall be applied to the project that obtained an investment license in accordance with the provisions of this law without other tax exemptions mentioned in other laws.

Non-tax incentives:

A- The projects which obtain an investment license and mentioned in Article / 21 / of this law benefit from “non-tax” incentives issued by a decision of the Council, with the aim of supporting a specific sector or a specific activity, in the following form:

1-  Permission to import requirement for production requirements that have no equivalent in local production, as an exception from the provisions prohibiting and limiting importation and the country of origin.

2- Benefiting from the services of the Fund for Support and Development of Local Production and Exports, based on the proposal of the Ministry of Economy and Foreign Trade.

3-Benefiting from technical support programs for small and medium enterprises through the Small and Medium Enterprises Development Authority.

B- Contracts, instruments, documents and all issued papers pertaining to the projects mentioned in Paragraph / B / of Article / 3 / of this Law shall be exempted from stamp duty.