Damascus-Sana
President Bashar Al-Assad issued today Law No. 15 of 2021 governing the collection of real estate sales tax, which is determined at a rate of the popular value per square meter based on the financial description of the property according to criteria and factors for each of the residential, commercial, industrial, agricultural or tourist properties.
The following is the text of the law
Law No. 15 |
President of the Republic
Based
on the provisions of the constitution.
And according to what was approved by
the People's Assembly in its session held on 11-8-1442 AH corresponding to 3/25-2021 AD
.
Issue the following:
Article 1 -
The following words and phrases, wherever they appear in the course of implementing the provisions of this law, have the meaning indicated next to each of them:
Minister : |
Minister of Finance. |
The Authority : |
General Authority for Taxes and Fees. |
General Manager : |
Director General of the General Authority for Taxes and Fees. |
Real estate unit: |
Real estate or part of a real estate that has an independent financial journal with the financial departments. |
Popular value of real estate units: |
The financial value of real estate units that are approved by the Ministry of Finance in calculating real estate sales tax. |
Tax : |
The tax on real estate sales is determined at a rate of popular value based on the financial description of the property. |
Price Slide: |
A group of contiguous real estate units defined geographically, the price per square meter in which is the same according to standards and factors for each of the residential, commercial, industrial, agricultural or tourist properties separately. |
Price Zone: |
A group of adjacent price segments. |
Electronic Maps: |
A set of maps, pictograms, images and data that are dealt with within geographic information systems to estimate the popular value of real estate units. |
Article 2 -
As an exception to the provisions governing the income tax of real profits stipulated in the Income Tax Law No.
24
of
2003 and
its amendments, natural and legal persons are charged with tax on real estate sales in accordance with the rules specified in this law.
Article 3 -
By a decision of the Minister, committees are formed to assess the popular value of real estate units according to the following:
A - Central Committee:
1-
The Central Committee consists of:
Minister of Finance |
President |
Director General of the General Authority for Taxes and Fees |
Member and Vice President |
General Director of the Real Estate Finance Supervision Authority |
Member |
General Director of the General Directorate of Real Estate Services |
Member |
General Director of the Public Institution for Housing |
Member |
General Director of the General Authority for Real Estate Development and Investment |
Member |
Director General of the General Authority for Remote Sensing |
Member |
Engineers Syndicate |
Member |
A representative of the Ministry of Local Administration and Environment at the rank of Director |
Member |
A real estate appraiser or real estate expert named by the minister |
Member |
Director of the Directorate of Taxes and Fees on Real Estate in the Authority |
Member and Rapporteur |
2-
The Central Committee shall supervise the assessment and approval of the popular real estate values by the main committees in each governorate, and it may seek the assistance of whomever it deems appropriate to carry out its tasks.
3-
The committee's meetings are not considered legal except with the attendance of two-thirds of the members, including the chairman or his deputy, and decisions are issued by the majority of those present, and in case of a tie, the side of the chairman or his deputy shall prevail in the absence of the chairman.
B - Main Committees:
1-
The main committee in each governorate financial directorate consists of:
County Finance Director |
President |
A representative of the governorate with at least the rank of director |
Member |
A representative of the Directorate of Real Estate Interests in the governorate, with the rank of department head at least |
Member |
Head of the direct taxes department |
Member |
A representative of the Engineers Syndicate branch in the governorate |
Member |
A real estate appraiser or real estate expert in the governorate named by the minister |
Member |
Head of the real estate trade division in the directorate |
Member and Rapporteur |
2-
The committee shall supervise the work of the subcommittees and approve the results of their work, and it may seek the assistance of whomever it deems appropriate to carry out its tasks.
3-
Committee meetings are not considered legal except with the attendance of two-thirds of the members, including the chairman, and decisions are issued by the majority of those present, and in case of a tie, the chairman's side shall prevail.
C - Sub-committees:
1-
The sub-committee consists of:
Head of the imports department of the provincial centers, or the director of the region’s money, or a competent department head, as the case may be |
President |
A representative of the administrative unit |
Member |
A representative of the Directorate of Real Estate Interests in the governorate |
Member |
Head of the direct tax division at the directorate |
Member |
A representative of the Engineers Syndicate branch in the governorate |
Member |
A real estate appraiser or real estate expert in the governorate named by the minister |
Member |
Head of the real estate trade division in the directorate |
Member and Rapporteur |
2-
The head of the committee assigns a financial worker from the competent department to enter data on the program to draw the boundaries of the regions.
3-
The committee shall propose price segments and the average popular value per square meter of real estate units for each segment according to the criteria specified for that, and upload them to electronic maps designed for this purpose within its scope of work, and it may seek the assistance of whomever it deems appropriate to carry out its tasks.
4 -
Committee meetings are not considered legal except with the attendance of two-thirds of the members, including the chairman, and decisions are taken by the majority of those present, and in case of a tie, the chairman's side shall prevail.
D -
The committees meet at the invitation of their chairman at least once every six months, and whenever necessary, to reconsider the determination of price segments and the average popular value per square meter of real estate units for each segment.
Article 4 -
A-
The price zones, their popular values and the criteria for the weighting of real estate units shall be issued by a decision of the Minister based on the approval of the Central Committee.
B-
The real estate unit shall be weighed according to the criteria stipulated in Paragraph /
A
/ of this Article in specific rates and the resulting increase or decrease in the popular value of the price segments according to its specifications that distinguish it from another real estate unit, at a rate not exceeding
25%
twenty-five percent increase. Or a decrease.
Article 5 -
The tax amount is determined at a rate from the popular value of the real estate unit as follows:
A-
(
1%
) One percent for residential real estate.
B-
(
2%
) two percent of the lands located within the approved organizational chart.
C-
(
1%
) one percent for the lands outside the approved organizational plan.
D-
(
3%
) three percent for the sale of non-residential real estate.
E-
(
1%
) one percent for roofs in residential real estate.
Article 6 -
A- The
value of the right of
ownership is
determined at a rate of (
40%
) forty percent, and the value of the right of usufruct at a rate of (
60%
) sixty percent of the approved popular value of the ownership of the real estate unit, whether it is residential or otherwise.
B- The
value of the ownership in commercial real estate is determined at a rate of (
10%
) ten percent, and the value of the rent
/
free
rent
allowance
/
at a rate of (
90%
) ninety percent of the approved popular value.
Article 7 -
A-
Tax rates on real estate devolved as a gift are determined according to the following:
1-
/
15% /
fifteen percent of the rate stipulated in Article /
5
/ of this law if it is of ancestors, descendants, and spouses.
2- The
rest of the donation transactions are treated as real estate sales.
B -
With the exception of the obligatory will, the will is treated as a gift in accordance with the provisions of this law.
Article 8 -
Taking into account the provisions of Article
117
of the Income Tax Law No.
24
of
2003, the
rates stipulated in Articles
5
and
7
of this law include national defense additions, school fees, the municipality’s share, and the contribution to supporting sustainable development, except for Add local administration.
Article 9 -
A-
Those subject to the provisions of this law shall, in both sale and donation cases, be bound by the following:
1.
submit a
written statement during the
/
30
/ thirty days from the
date of the
incident according to the
approved form exclusively in the financial circles.
2-
Pay the due tax within /
30
/ thirty days from the date of submitting the declaration stipulated in Clause /
1
/ of this paragraph.
B- The
violator of the provisions of Clause /
1
/ of Paragraph /
A
/ of this Article shall be fined a fine of (
10%
) ten percent of the tax incurred by him.
C-
The violator of the provisions of Clause
2
of Paragraph
A
of this Article shall be subject to the provisions of Legislative Decree No.
146
of
1968
.
Article 10 -
A- The
following cases are exempt from tax in accordance with the provisions of this law:
1-
Expropriation for the public benefit.
2-
Deduction of ownership for the public benefit for the planning and urbanization of cities.
3-
Loaning between ascendants, descendants and spouses only.
4-
Sales made by public authorities of an administrative nature.
5-
Sales made by diplomatic and consular missions accredited in the Syrian Arab Republic, subject to reciprocity, and sales made by international bodies and organizations accredited in the Syrian Arab Republic in accordance with the provisions of international agreements in force.
B-
All tax exemptions granted under the laws in force for private societies and institutions subject to the provisions of Law No.
93
of
1958
and its amendments
remain valid
.
Article 11 -
The taxpayer has the right to object to the tax within /
30
/ thirty days following the date on which he is notified of the arrest warrant, provided that:
A-
Paying the tax amount and its additions and supplements in full before registering the objection with the Financial Department.
B-
Paying a security amount at the rate of (
1%
) one percent of the imposed tax, and the amount of the security will be returned to the taxpayer if he was right in the objection request or in part thereof, and it becomes revenue to the public treasury if he is not right in it.
Article 12 -
A- A
committee or more shall be formed by a decision of the Minister to consider the objections submitted by the taxpayers according to the following:
Judge with the rank of advisor nominated by the Minister of Justice |
President |
Finance manager, finance manager, or department head, as the case may be |
Member |
Representative of the administrative unit |
Member |
A real estate appraiser or real estate expert named by the general manager |
Member |
Head of the real estate trade department or division |
Member and Rapporteur |
B-
The committee meets at the invitation of its chairman, and its meetings are not considered legal except with the attendance of two-thirds of the members, including the chairman, and its decisions are issued by the majority of the attendees, and in case of a tie, the side of the chairman shall prevail.
C- The
committee shall consider the objections submitted to it within /
30
/ thirty days from the date of the expiration of the deadline for submitting the objection.
D-
With regard to the objections received on the classification, the committee decides to correct the classification of the property according to reality, through a field visit in the event of necessity in the real estate zone and at the price segment level.
E-
The decision of the committee in the event of acceptance of the objection to the assessment of the popular value of the real estate unit by referring the objection, together with justifications, to the sub-committee at the level of service departments in the centers of governorates, cities and regions, to re-examine the prevailing values in the price segment.
F- The
sub-committee has the right to accept or reject the amendment according to the actual reality, and for this purpose it has the ability to amend the prevailing value of the price segment, or re-draw the price segment, or the weighting criteria, or any procedures available to reach the fairer popular value of the real estate units.
G- The
amendments of the sub-committee, if they exist, are approved according to the established procedures for the approval of the real estate units' current value by the main committee and the central committee and during semi-annual meetings.
H-
Tax differences resulting from objections are dealt semi-annually and within /
30
/ thirty days from the date of issuance of the Minister’s decision to approve the popular values of real estate.
( I
) In the
event of shifts, given the
tax and their
accessories and addenda to the
bank account exclusively to the
taxpayer, and the
taxpayer to
pay another tax if any.
Article 13 -
A- It is
prohibited for the real estate registry departments, notaries public, and every authority authorized to register real real estate rights to document or register any real real estate right, unless the parties involved produce the clearance from the relevant financial departments.
B -
Any documentation or registration made in contravention of the provisions of Paragraph /
A
/ of this Article
shall be deemed null
.
C-
Without prejudice to any stricter penalty stipulated in the laws in force, every employee who violates the provisions of Paragraph /
A
/ of this Article shall be punished with imprisonment from one to three years and a fine of five hundred thousand to one million Syrian pounds.
Dr-
1- It is
prohibited for the courts to issue judgments related to the confirmation of real estate sales or the right of rent
/
separation
/
except after submitting a document from the financial departments
notifying the
payment of an amount equivalent to the tax due on the process subject of the dispute in the case.
2-
The court shall decide to dismiss the lawsuit in form in the event that the document stipulated in Clause /
1
/ of this paragraph has
not been submitted
after three months from the date of its assignment to the stakeholder.
3-
In the event of a ruling to dismiss the case or to cancel it, the court shall decide to return the amounts paid in accordance with the provisions of Clause No. /
1
/ of this paragraph to the person who has made the payment, and in this case it is sufficient to present a true copy of the judicial ruling acquired the final degree to the financial departments.
4-
The judicial rulings referred to in Clause No. /
1
/ of this paragraph do not prevent the completion of the procedures for imposing and collecting the tax owed by the taxpayer to grant the clearance for the implementation of these rulings in accordance with the legislation in force.
5 -
The document granted by the financial departments in accordance with the provisions of Clause No. /
1
/ of this paragraph is not considered a financial clearance for the implementation of the final judicial ruling acquired the final degree of the case.
6-
The court sends a copy of the final judgments to the financial departments.
Article 14-
A-
The provisions of this law do not apply to real estate sales to public entities of an economic nature and remain subject to the provisions of the Income Tax Law No.
24
of
2003
and its amendments.
B-
The real estate market value is considered as the minimum selling value or reference value for determining the annual rental allowance for the real estate unit owned by public entities.
Article 15 -
The provisions of this law do not apply to real estate sales to real estate development project companies licensed in accordance with the provisions of the Real Estate Development Law in force, and those sales remain subject to the provisions of the Income Tax Law No.
24
of
2003
and its amendments.
Article 16 -
A- As
an exception to the provisions governing income tax, non-residential properties leased to Syrians and non-Syrians in accordance with the provisions of Law No. /
10
/ for the year
2006
and Law No. /
20
/ for the year
2015 are
subject to an income tax at a rate of (
10%
) ten percent of the annual rental allowance contained in the lease contract. ,
Provided
that the income tax is not less than /
0,0006
/ six per ten thousand of the popular value of the leased property, as for contracts concluded with non-Syrians before the enforcement of Law No. /
10
/ of
2006, they are
taxed at a rate of (
10%
) ten percent of the allowance called the contract, Provided that the tax is not less than twice the annual financial revenue of the leased property.
B- As
an exception to the provisions governing real profits income tax, residential properties rented to Syrians and non-Syrians in accordance with the provisions of Law No. /
10
/ for the year
2006
and Law No. /
20
/ for the year
2015 are
subject to an income tax rate of (
5%
) five percent of the annual rental allowance contained in the lease contract. ,
Provided
that the income tax is not less than /
0,0003
/ three per ten thousand of the popular value of the leased property, and the popular value of the aforementioned residential real estate unit shall increase by (
25%
) twenty-five percent if it is rented out furnished.
C-
The persons subject to the provisions of this Article are obligated to declare the lease contracts within /
30
/ thirty days from the date of the commencement of the lease.
D -
Persons subject to the provisions of Paragraph /
A
/ of this Article are
obligated to
pay the tax they are required to pay on the date the contract was submitted to the financial departments.
E -
Persons subject to the provisions of Paragraph /
B
/ of this Article are
obligated to
pay their tax on the date of registration of the contract in the Administrative Unit.
F-
Persons violating the provisions of the
previous
paragraph /
c
/ shall be fined a fine of (
10%
) ten percent of their tax.
G-
The provisions of Article
107
of the Income Tax Law No.
24
of
2003 and
its amendments shall apply to persons who violate the provisions of paragraphs /
d
-
e
/ of this article.
H- The
provisions of Paragraph /
A
/ of this Article shall
exclude
agricultural real estate leased for agricultural investment.
I- The
bodies entrusted with registering lease contracts for commercial real estate must refer them to the financial departments before registering them and send a true copy of them after registration.
J- The
bodies entrusted with registering lease contracts for residential properties should send a true copy of them to the financial departments.
K-
The provisions of Law No.
25
of
2003 and
its amendments
shall apply
when workers in the field of inquiry and combating tax evasion discover unregistered contracts, or discover that the value of the actual rental allowance is different from what is stated in the contract registered with the administrative unit or the financial department.
L-
Secondment contracts for non-ascendants, descendants and spouses shall be treated as lease contracts.
Article 17 -
Real estate sales with a fixed date prior to its enforcement are not subject to the provisions of this law.
Article 18-
By a decision of the Minister, the compensation of the committees stipulated in this law shall be determined, and the appropriations for this purpose shall be disbursed in the Authority's budget.
Article 19 -
Paragraphs
b
/ and /
c
/ of Article /
4
/ and Article /
7
/ of Legislative Decree No. /
56
/ of
2004
, and Articles /
14,11,6,5,4,3,2,1
/ of Law No. /
41
/ of
2005
, Legislative Decree No.
52
of
2006
, Article
36
of Legislative Decree No.
53
of
2006
, and Article 11 of Legislative Decree No.
23
of
2011
.
Article 20 -
The executive instructions for this law shall be issued by a decision of the Minister.
Article 21 -
This law shall be published in the official gazette, and it shall be enforced from
5-3-2021
.
Damascus on 8-15-1442 Hijri corresponding to 3-29-2021 AD.
President of the Republic Bashar al-Assad |