Syria’s Tax Reform Committee, chaired by Finance Minister Mohammad Barniyeh, has completed a preliminary draft of both a new Income Tax Law and a Sales Tax Law, as part of a sweeping overhaul of the country’s tax system.
In a statement posted on LinkedIn, Barniyeh said the committee had made “significant and steady progress” in its latest meeting and aims to release both draft laws for public consultation within the next two weeks to gather feedback.
The reforms include a review of ministerial fees, with updates already completed for the Ministry of Transport and work ongoing with other ministries. The Finance Ministry also plans to hold a large open workshop with the business sector to explain the new system and engage in dialogue.
According to Barniyeh, the new framework — set to take effect at the start of 2026 — will be built on “simplicity, clarity, and competitiveness” and founded on a “partnership and trust” with the private sector.
Income and Sales Tax Changes
The draft income tax law comprises 14 chapters covering key areas such as taxable persons, tax rates, exemptions, non-taxable thresholds, allowable expenses, taxpayer obligations, filing requirements, auditing, appeals, payment procedures, loss treatment, and tax litigation.
The new sales tax is defined as an indirect consumption tax applied to domestically produced and imported goods and services, aimed at funding state institutions and facilities.
Recent Tax Decisions
In recent months, Barniyeh has rolled out a series of tax relief measures, including:
- Cancelling the real estate sales tax in cases where the sale is abandoned by mutual agreement.
- Extending the deadline for filing tax returns by two months to the end of July 2025, alongside freezing field inspection teams to encourage voluntary compliance.
- Reducing the “prevailing value” used to calculate real estate taxes by 30% temporarily, and removing the security clearance requirement for property sales in favour of a faster “no-objection” document.
Key Features of the New Tax Regime
The upcoming system introduces a unified tax that does not differentiate between companies and individuals. It sets the minimum taxable income threshold at a net annual income above $12,000, removes taxpayer classification based on business type, and grants a full exemption on salaries not exceeding $12,000 annually.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
