The Investment Law:

Syria recently adopted a new Investment Law No. 18 for the year 2021.

The Law includes the following guarantees for investors:

• It is not permissible to place a provisional attachment on the project or impose custody on it except by virtue of a judicial decision.
• to not expropriating the project except for the public benefit and at the prevailing price at that date. The investor is allowed to retransfer the amount of compensation in a convertible currency.  
• Not to subject the investment project to any new procedural burdens except with regard to the environment and public health.
• Not to subject the project to any new financial burdens.
• Not to cancel the investment license except after warning the investor with a grace period of the violations attributed to him that are related to the project and to remove the violation starting from the day following the ninety days.

Tax Incentives for Investments:

• Permanent 100% income tax exemption for agricultural projects.
• 75% reduction in income tax for the first 10 years for investments inside development areas for certain sectors.
• 75% reduction in income tax for the first 10 years for investments outside development areas.

The Law includes more incentives such as exempting imports for investment such as machinery and production requirements, in addition to further tax reductions for industrial activities using 50% local content.

Other Incentives:

• Exemption from import bans for raw materials if not available in the domestic market.
• Eligibility to benefit from the services of the Exports and National Production Development Fund through a recommendation by Ministry of Economy and Foreign Trade.
• Eligibility to benefit from the SMEs technical assistance programs offered by the SMEs Development Commission.

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The Tax Law No. 24 for the year 2003 governs taxation in Syria as follows:

• Income tax rates are lowered significantly in comparison with previous legislation.
• Income taxes are imposed on commercial establishments ranging from 10% to 28%.
• Corporate tax is usually set at a rate of 22% though significant deductions exist in certain cases.
• Further incentives are also afforded to businesses that operate in the industrial sector.
• Depending on the types of business dealings involved, other taxation structures apply.
• The payroll tax ranges from 5% to 22%

Labor Law No. 17 for the year 2010 regulates the labor market in Syria.

• Probation Period : Maximum three months. 
• Hours of work: 8 hours a day and 40 per week.
• Termination of contract: The employer may terminate fixed-term employment contracts any time during employment, provided he pays the worker his wages for the remaining duration of the contract. Similarly, the worker may terminate the employment contract any time, provided he sends written notice to the employer two months prior to termination date, failing which the worker shall pay the employer compensation equalling the wage for the notice period or the remaining portion thereof.
• Unspecified duration contract: 2 months-notice by the employee or the employer.
• Medical Care: Employers having more than 100 employees should have a nurse and basic medical devices, and employers having more than 200 employees should provide treatments for employees.
• Maternity Leave: After 6 months at work, women are entitled to 120 days for the first childbirth, 90 for the second childbirth, and 75 for the third childbirth.
• Annual Leave: Employees are entitled to 21 working days which increase with their work with the same employer to 24 days after 5 years and to 30 working days after 10 years or for employees older than 50 years old.
• Periodic wage increment: The employee have the right to wage increment once every other year.
• The retirement age is 60.