Syria’s business legal framework has undergone significant changes through 2026. UAE entrepreneurs entering the market must understand Law No. 18 of 2021, the Commercial Code, tax laws, labor regulations, and sector-specific legislation. This comprehensive overview covers the legal landscape for UAE investors.
Law No. 18
Primary foreign investment law. 100% foreign ownership, tax incentives, profit repatriation guaranteed.
Tax System
28% corporate tax, 5% VAT, 18% social security. Progressive personal income tax 5-22%.
Labor Code
48-hour work week, 21 days annual leave, end-of-service benefits mandated by law.
Core Business Laws
| Law | Year | Key Provisions | Relevance |
|---|---|---|---|
| Law No. 18 | 2021 | Foreign investment, ownership | Primary framework |
| Commercial Code | 2007 | Company types, contracts | Entity formation |
| Tax Law No. 24 | 2023 | Corporate tax, VAT, penalties | Tax compliance |
| Labor Law No. 17 | 2010 | Contracts, termination | HR operations |
| Customs Law | 2022 | Import/export duties | Trade operations |
Investment Law No. 18
The cornerstone of Syria’s foreign investment framework. Replaced restrictive Law No. 10 with: 100% foreign ownership, simplified licensing, up to 7-year tax holidays for industrial projects, guaranteed profit and capital repatriation, and expropriation protection with compensation.
Tax and Fiscal Law
Corporate income tax: 28%. VAT: 5%. Withholding tax: 7.5% on dividends to non-residents. Personal income tax: progressive 5-22%. Annual returns due March 31. Late filing penalties have doubled since 2024.
⚠️ Important: Tax evasion is a criminal offense. Penalties up to 300% of evaded tax plus imprisonment. Maintain Arabic accounting records.
Labor Law
Key provisions: 48-hour max work week, 21 days annual leave, 14 days sick leave, end-of-service indemnity, employer social security 18%. UAE-style at-will employment does not exist in Syria.
✅ Tip: Engage a Syrian labor lawyer for employment contracts. All terminations require documented cause or negotiated severance.
ℹ️ Note: Subscribe to the Syrian Official Gazette for new laws and amendments. Major changes occur every 3-5 years.
Frequently Asked Questions
How often do business laws change?
Major changes every 3-5 years. Regulatory amendments more frequent. Subscribe to Ministry of Justice gazette.
Are UAE judgments enforceable?
Yes, under 2023 Judicial Cooperation Agreement after recognition proceeding. DIAC awards also enforceable.
Need local lawyer for disputes?
Yes. Syrian courts require locally licensed lawyers. Not recommended to self-represent.
Resources
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Laila Al-Hassan (ليلى الحسن)
Senior Content Strategist. Based in Damascus with 8 years experience in Syrian business content and market analysis.
