Implementation of Investment Law No.10/1991
Instructions No.6 dated 26/07/1998
The Implementation of Investment Law No.10/1991Article 2 -
Beneficiaries from the Law
from Investment Law shall be projects of economic and social
development that are to be approved by the Council and which are
established with local or foreign capital, or both, by natural or
juristic persons identified as follows:
Arab citizens residing in the Syrian Arab Republic and those who are
treated as such.
Syrian Arab citizens whether they retain their original nationality
or have obtained the nationality of the host country.
of Arab and foreign states.
persons who will be licensed by the Council to launch enterprises
under the rules of investment law.
3 - Investment Fields
and social development projects mentioned in Article 3 of Investment
Law shall mean those enterprises which are created under its rules
in the following areas:
enterprises in both plant and animal production areas and all other
activities and works related, connected or complementary thereto
such as the construction of greenhouses, refrigerated storage
facilities and facilities for the sorting, packing and packaging of
fruits and vegetables whether those are the produce of the same
enterprise or other enterprises.
for the processing of agricultural (plant or animal) products.
enterprises that may be created by the private or joint sector.
that may be approved by the Council in areas other than the
4 - Basics and Criteria for the Council to Grant Approval
a project to benefit from Investment Law the Council shall decide
its approval of it in light of the following considerations:
project must be in line with the state development plan.
extent of the project’s use of available local resources, its
contribution to the growth of Domestic Product and to the opening up
of more job opportunities.
project’s potentials in promoting exports and rationalizing
project’s usage of modern up-to-date machinery and technology that
meet the needs of the national economy.
value of the project’s fixed assets (machinery, vehicles,
instruments, equipment, tools, installations, non-touristic
transport means and all other production means which are definitely,
not temporarily imported) that will be invested solely and
exclusively in the project must not be less than ten million Syrian
pounds or the equivalent in foreign currency calculated at the
exchange rate of neighboring countries as per the bulletin of
exchange rates issued by the Commercial Bank of Syria.
Council of Ministers may change the afore-said minimum value by a
decision signed by the Prime Minister.
machinery, instruments, tools, equipment, non-touristic transport
means and all other production means imported solely and exclusively
in favour of projects created under this law must be brand-new, not
second-hand nor reconditioned.
10 - Powers of the Investment Bureau
the extent of its specialization, the Investment Bureau has the
following tasks to perform:
receives and registers applications for investment which are
referred to the Council by the concerned authorities. It has to
update the information and data required for every application in
close cooperation and coordination with the various competent
authorities, and to prepare a file for each application. Copies of
such files must be handed out to the chairman and members of the
Council three days at least before the meeting of the Council.
keeps a special record for the invested funds brought from abroad in
the form of foreign currency or assets in kind or rights which are
already adopted by the Council. On the basis of this record the
Bureau may issue a certificate testifying each share of the invested
capital in conformity with the registered data. Such certificate
shall be signed by the Bureau Director who takes the responsibility
receives investors’ complaints and seeks to remedy them. It helps
the investors get the required permits and licenses from the
concerned authorities for their enterprises and helps them follow up
implementation. It receives investors’ suggestions and opinions on
investment issues and project implementation and refers them to the
records minutes of the Council meetings and its decisions and
follows up their implementation with the various authorities of
concern. It must keep records of the Bureau’s performance with
regard to implementation of Investment Law in such a manner as to
ensure the good and sound implementation. Besides, it must collect,
classify and study report and data of the enterprises including
their balance sheets and their profit-and-loss accounts and present
to the council periodical report thereof.
must study the draft by-laws of joint-stock limited liability
companies created under Investment Law. It must also study the draft
amendments of those by-laws and transmit those drafts and studies to
the Council to consider approval thereof.
must publish leaflets, booklets and other publications in Arabic and
a foreign language about investment in the Syrian Arab Republic
according to the Council’s directives.
has to cooperate with the various organizations in the public,
private and joint sectors for the launching of publicity campaigns
to acquaint Syrian expatriates and nationals of Arab and foreign
states with investment opportunities available in the Syrian Arab
Republic under Investment Law, taking directives in this regard from
coordination with the Ministry of Economy and Foreign Trade and
Ministry of Finance, it evaluates the foreign capital.
has the power to agree to the projects having the required touristic
transport means as they deserve under the Council’s Decision
No.308 dated 05/08/1992 and amendments.
has the power to agree to the projects having required communication
means (telephone, telefax, telex) as they deserve under the Council
Decision circulated by letter No.33/1/33 dated 15/02/1992 and the
Decision circulated by letter No.404/1/33 dated 13/06/1994.
studies and handles the following cases:
studies and handles applications filed with it for an extension of
the period of execution of the projects created under Investment law
without prejudice to Article 13 of the said law with regard to the
period of exemption.
studies and approves applications filed with it concerning transfer
of ownership, wholly or partly, of the approved projects in
compliance with the rules of Investment Law and relevant Council
studies and handles applications filed with it for altering the
legal status of the projects.
studies and handles applications filed with it for changing the
projects’ purposes and production capacity, which if carried out
do not entail any change in the projects’ costs in the light of
the study made by concerned ministry. All measures taken in this
respect shall be incorporated in a decision to be signed by the
Prime Minister, chairman of the Higher Investment Council, and
notified by the Bureau to the concerned party.
Bureau Director invites Investment Directors in the various
concerned ministries to periodical meetings inorder to follow up
implementation of investment projects created under Investment law
and to observe stages of execution of each and to exchange opinions
on the manner of handling investors’ issues referring those which
require decisions to respective ministries or to the Council for the
adoption of the necessary procedure.
performs any other tasks assigned to it by the Council.
public authorities, departments and establishments shall have the
obligation to extend all possible assistance and facilitate things
to investors for the purpose of accomplishing formalities without
delay. They also have the obligation of providing answers to
questions and querries posed by the Bureau within one week from the
dof filing the questions or querries.
14 - Exemptions, Advantages and Facilities
the opening of bank accounts in foreign currency:
in addition to the facilities provided for by the currency laws and
regulations in force, the investor has the right to open in favour
of his project created under
Investment Law an account in foreign currency with the Commercial
Bank of Syria which will have to be credited with :
of the project capital paid in foreign currency and loans obtained
in foreign currency as well.
of the revenues obtained in foreign currency as a result of
exportation and services, the remaining 25% of those revenues shall
be sold to the Commercial Bank of Syria at the exchange rate
specified in Article 4 above.
said bank account shall be debited with the sums of money in foreign
currency paid to cover the burdens, needs and requirements of the
project such as:
of the machinery, vehicles, equipment, cars and all other materials
needed for the creation, operation, development and expansion of the
of raw and semi-processed materials and other auxiliary materials
required for production.
of spare parts and costs of reconditioning worn-and-torn machinery.
installments of paying back loans and interest rates due on loans
borrowed in foreign currency in favour of the enterprise.
due interest rates and profits authorized for transfer abroad each
year in favour of expatriate Syrians and nationals of Arab and
foreign states who have transferred into the country in foreign
currency the value of their shares and stakes through a bank based
in the Syrian Arab Republic or by any of the means approved by the
Currency Bureau in conformity with the regulations in force.
to be debited in the said account are the dues authorized for
transfer abroad through the Commercial Bank of Syria in favour of
workers in the project who are not Syrian nor treated as Syrians.
of money due on the project which have to be paid by transfers
abroad in foreign currency through the Commercial Bank of Syria on
the basis of authentic documents.
expenses that have to be paid in foreign currency in the Syrian Arab
premiums which the enterprise must pay in foreign currency.
due to members of companies’ boards of directors who are not
Syrian nor treated as such.
Bureau must be notified by the Commercial Bank of Syrian of the sums
of money that are being transferred.
enterprise bears full responsibility towards making available the
foreign currency that meets its needs by lawful means and no
official party in the Syrian Arab Republic can have the obligation
of providing any sum of money in foreign currency in favour of the
enterprise or its owners.
investor has the right to invest the foreign currency he possesses
inside the country, or the foreign currency existing abroad which he
lawfully brings into the country in financing the projects created
under Investment Law, or in contributing to the capital of
enterprises or in purchasing shares. For such investment the
investor is kept safe from any liability that falls under any clause
of criminal law in force.
bank where the investors’ funds are deposited in conformity with
Article 16-A of Investment Law shall have the obligation of placing
those deposits at their disposal upon demand and it shall take all
necessary measures that ensure such action.
bank shall calculate interest on the sums of money deposited with it
in foreign currency for the account of the enterprise on the basis
of current interest rates.
investor may deposit some of his foreign currency assets in a frozen
account at the Commercial Bank of Syria.
bank shall deliver to the investor a cheque book special for
investors which must be used solely and exclusively in favour of the
Commercial Bank of Syrian shall transfer all the project’s burdens
requirements and needs in foreign currency in harmony with these
investor who opens a foreign currency account with the Commercial
Bank of Syria in conformity with the currency regulations in force
in favour of his project that is created under Investment Law may
recover the balance of the money which was lawfully brought into the
country and deposited in an account opened at the Commercial Bank of
Syria after his project has been completely executed and all its
needs and operation costs as well as cost of its raw material, spare
parts and operating capital have been paid in full in foreign
investor, moreover, may have this balance transferred abroad if he
is a Syrian living abroad or a non-resident national of an Arab or
foreign country provided that the project owner remains under the
obligation of ensuring the availability of the foreign currency
needed to cover future needs of the project through lawful bank
the benefit of his enterprise, the investor may borrow loans in
local currency from state-owned banks against the guarantee of his
private money existing in the Syrian Arab Republic in conformity
with those banks’ regulations.
investor shall bear all material and legal consequences resulting
from foreign and local loans which he has taken or will take upon
himself including payment of both installments and interest in
harmony with the laws and regulations in force and neither the state
nor any other public body shall have the obligation of providing
guarantees of whatever kind to any party whatsoever be it local or
foreign. Such loans shall not be insured by the Arab Organization
for Investment Guarantee or any other organization.
being restricted to rules of prohibiting, restricting and
monopolizing importation and rules of direct importation and rules
of Currency Regulations, the enterprises may import:
required machinery, vehicles, equipment, hardware, working cars
including buses and minibuses destined to service the enterprises
and other materials needed for the creation, development and
expansion of the enterprises.
materials and requirements needed for the enterprise operation (raw
materials, processed and semi-processed materials and all materials
needed for production operations which can be considered part of the
final product and one of its components).
enterprise imports specified in item 1 of this Article shall be
exempted from taxes, fiscal fees and municipal rates, customs duties
and other fees provided that those imports are solely and
exclusively used for the purposes of the enterprise.
enterprise may not relinquish any of the imports specified in A-1
above without a prior approval from the Council. Subject to this
approval, those imports can be abandoned after the payment of all
taxes and fees assessed on them in their current condition including
the tax on capital profits as stipulated in Article 32 of Investment
Law and in compliance with the regulations in force.
, non of the imports mentioned in A-1 and 2 above may be
relinquished, nor may they be used in other than the enterprise
purposes unless the Council agrees thereto and accepts justified
reasons for this action.
from the rules of this Article are the packing materials of the
imports(pallets, drums, ..etc) the left-overs, wastes and exhaust of
the manufacturing process in harmony with the internationally
implementing the rules of Article 12-A of Investment Law, imports
shall mean all imported machinery, vehicles, equipment, hardware,
working cars, buses and mini-buses required to service the
enterprises and all other materials needed for the creation,
development and expansion of the enterprises.
belonging to individuals or companies other than joint sector
companies and their profits and dividends shall be exempted from all
taxes levied on income, and from real estate and vacant plots of
land taxes (including the tax on machinery revenues) occurring on
the enterprises properties possessed for accomplishing thepurposes
and tasks for a period of five years as from the date of actual
production or date of exploitation according to the nature of the
companies in which the public sector possesses not less than 25 % of
whose capital created under Investment Law shall take the form of
Societe Anonym joint-stock company or limited liability company.
Such companies and their shares profits, dividends and monies shall
be exempted from all taxes levied on income and from real estate and
vacant plots of land taxes (including taxes on machinery revenues)
occurring on the enterprises properties possessed for accomplishing
their purposes and tasks for seven years as from the date of actual
production or date of exploitation according to the nature of each
of its projects created under Investment Law.
the process of implementing clauses A and B of this Article, the
date of actual production or exploitation shall mean the date when
commercial investment or production commences.
the purpose of implementing Article 14 of Investment Law, the period
of creating an investment project commences on the date when the
decision providing for the creation of a joint-sector company,
joint-stock company or limited liability company is issued. For
enterprises belonging to other natural or legal persons the period
of founding the enterprise commences on the date when the Higher
Investment Council gives its approval mandating the creation of such
a decision from the Council an additional period of two years shall
be added to the exemption period stated in Article 13 of Investment
Law if the total revenues resulting from exports of the
enterprise’s commodities and services actually transferred into
the Syrian Arab Republic through Syrian Banks exceed 50% of its
total production achieved during the original exemption period
calculated at the end of the period.
sector companies created under Investment Law excluding all other
companies shall be exempted from the stamp fees required on the
issuance of its shares.