Syrian Cabinet approves amendment bill for investment law no.10 of 1991
Syria, Economics, 4/26/2000

Chaired by Prime Minister Muhammad Mustafa Miro, the Syrian Cabinet held a meeting on Tuesday during which it approved the bill that provides for amending law no. 10 on encouraging investment for the year 1991.

The amendment project avails ensuring further exemptions and privileges which would attract foreign, Arab and national investments.

The amendment bill permits Arab and foreign investors to own and rent the necessary land and real estate to establish investment projects, including tourism projects.

This new bill proposed by the higher investment council gives the investment projects a certain additional periods of time not to exceed the project's foundation period, according to rules of the law in five years.

The new amendment also gives an additional exemption period for the new projects to be licensed by the council according to the provisions of the law as follows:

Two years if the project's exports exceed 50% of the total value of its production during the original exemption period.

Two years if the project is assessed by the council as a project of special importance to the national economy in light of these project's capital investment value, or the added value it achieves or the extent of its contribution to the GNP or encouraging exportation or increasing job opportunities.

Two years if the project is established in one of the following provinces of al-Hassaka, Seir ezz Zour, Raqqa or in the rural areas (the three less developed Syrian provinces).

Joined companies licensed according to the provisions of the law are exempted from fees resulting from issuing their shares. Also exempted are new shareholder companies which open their shares for general subscription at a rate of no less that 50% of their capital, which will be licensed according to the provisions of this law.

Holding companies which open their projects' shares and companies for public subscription at a rate not less than 50% of its shares, licensed according to the provisions of this law are also exempted from issuance fees.

The new project also permits investors, expatriate Syrians and Arab and foreign citizens after the end of the five years after renting the project to transfer the value of their net shares in foreign currency to abroad on the grounds of the real value of the project at the date it is given up and according to the executive instructions issued by the higher investment council to this effect.

The amendment bill does not permit directly or indirectly confiscation or freezing the investor's sums and investments, licensed according to this law.

The new bill also includes amendments of the income tax rate on net profits realized by the share-holders companies which open their shares to general subscription for the private and joint sectors, which has Syria as its main headquarters for all its activities at an average of 25%.

The amendment bill also avails ensuring more exemptions, privileges and facilitation to investors and elimination of all obstacles which have been obstructing licensing and execution of projects.

Premier Miro stated that the amendment on law no 10 for 1991 took into consideration the proposals and observations of investors on the investment climate in Syria and means of improving it.

He said the new project ensures further confidence, flexibility and clarity in dealing with investors, the economic feasibility of their projects, the national economy and expanding the base of productive investment for attaining balanced and overall developments.

He continued that measures aimed at developing and improving the investment climate in Syria will not be limited to amending law no. 10 of 1991 on encouraging investment, but include integrated measures stemming from a comprehensive and clear vision of the investment conditions and the requirements of developing to make Syria an attractive country to national, expatriate, Arab and foreign investments.

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