Your damaged facility may qualify for tax relief, but repair estimates alone are not enough to establish eligibility. Under Decree No. 69 of 2026, the tax exemption for damaged facilities in Syria depends on an official assessment of fixed-asset damage, with exemption rates and periods varying by damage level and facility type.

This guide explains how to determine eligibility, assess damage, prepare the required documents, and complete the application process. It also addresses repairs made before inspection and how to align the tax exemption with your facility’s rehabilitation and reopening plans.

Eligibility for tax exemption Under Decree No. 69 of 2026

The tax exemption for damaged facilities in Syria applies to qualifying businesses whose fixed assets were damaged during the war. Under Decree No. 69 of 2026, eligibility depends on the facility’s activity, the cause and extent of damage, and the percentage approved by the official assessment committee.

Which facilities qualify?

The decree covers commercial, industrial, and tourism facilities whose fixed assets suffered total or partial destruction due to military operations or acts of sabotage between March 15, 2011, and December 8, 2024. The implementing instructions also refer to service facilities, whose eligibility should be confirmed with the competent Finance Directorate.

Two essential conditions apply:

Tax registration: The facility owner must be registered as a taxpayer with the General Commission for Taxes and Fees.
Minimum damage: The official committee must approve damage amounting to at least 25% of the facility’s fixed assets.

Photographs and technical reports may support the application, but they do not replace the committee’s official assessment.

Which assets are included in the damage assessment?

The assessment covers fixed assets directly associated with the facility’s operations, including:

Buildings and structural components.
Machinery and production equipment.
Fixed electrical and mechanical installations.
Permanent production networks and operating systems.

Damage affecting an asset’s operating capacity may also be considered when adequately documented, even if it is not immediately visible.

Inventory and goods are excluded from the fixed-asset damage calculation. Facility owners should therefore distinguish these losses from damage to buildings, machinery, and permanent installations when preparing their records.

How the damage percentage is assessed

Under Decree No. 69 of 2026, the damage assessment committee determines the percentage of damage to a facility’s fixed assets. Its assessment considers the extent and value of the damage, supported by financial records, technical evidence, and a site inspection.

For preliminary planning, facility owners can calculate an indicative percentage using the following formula:

Estimated damage percentage = Estimated value of fixed-asset damage ÷ Estimated total value of fixed assets × 100

This calculation is for reference only. The official damage percentage is determined by the committee under the applicable assessment rules and may differ from the facility owner’s estimate.

How to prepare a damaged asset register

A detailed asset register helps the committee compare the reported damage with the facility’s records and actual site conditions. Organize it around four elements:

Asset identification: Record each building, machine, or fixed installation, including its location, function, acquisition date, and serial number where available.
Damage description: Document the extent of damage and whether the asset requires repair or replacement.
Supporting evidence: Link each asset to available photographs, accounting records, technical reports, and relevant invoices.
Asset valuation: Include available records supporting the asset’s value and any documented repair or replacement estimates.

Keep the register consistent with the facility’s accounting records and physical condition. The committee remains responsible for establishing the officially approved damage percentage used to determine eligibility for the tax exemption.

Tax exemption rates and duration under Decree No. 69

Under Decree No. 69 of 2026, the exemption rate depends on the officially approved percentage of fixed-asset damage. Commercial facilities qualify for a one-year exemption, while industrial and tourism facilities may receive exemptions lasting two to four years, depending on the damage bracket.

The following table summarizes the rates and periods established by the decree, starting in 2026:

Facility Type	Approved Damage	Exemption Rate	Duration
Commercial	25–50%	50%	1 year
Commercial	51–75%	75%	1 year
Commercial	76–100%	100%	1 year
Industrial or tourism	25–50%	50%	2 years
Industrial or tourism	51–75%	75%	3 years
Industrial or tourism	76–100%	100%	4 years

The approved damage percentage determines the applicable bracket. For commercial facilities, a higher bracket increases the exemption rate without extending its duration. For industrial and tourism facilities, both the exemption rate and duration increase across the three brackets.

The exemption provides tax relief under the decree and its implementing rules; it is not a cash grant or reimbursement for rehabilitation costs. Facility owners should confirm the taxes and fees covered by their exemption decision with the competent Finance Directorate.

Damage assessment committee Under Decree No. 69

Under Decree No. 69 of 2026, one or more damage assessment committees are established in each governorate to determine the officially approved percentage of damage to a facility’s fixed assets. The committee’s report forms the basis for the tax exemption decision, which is issued by the Director General of the General Commission for Taxes and Fees.

Each committee comprises six members:

Chair: A representative of the governorate’s Finance Directorate.
Government representatives: One representative each from the Ministries of Justice, Local Administration and Environment, and Economy and Industry.
Engineering representative: A member representing the Engineers Syndicate.
Valuation expert: An expert appointed by the Minister of Finance.

The Minister of Finance determines the committee’s compensation, which is collected from the affected taxpayer. Facility owners should confirm the applicable amount with the competent Finance Directorate when estimating application costs.

How the damage assessment committee works and its timeline

The damage assessment committee reviews the facility’s supporting documents and conducts an on-site inspection to verify damaged assets, assess their condition, and establish the cause and extent of damage. It may examine accounting and tax records, consult relevant authorities, and seek expert opinions or comparable asset valuations where necessary.

The application then proceeds through the following stages:

Site inspection: The committee conducts its inspection within 20 days of receiving a complete application.
Assessment report: The committee submits its report to the Director General of the General Commission for Taxes and Fees within 20 days after completing the inspection.
Exemption decision: The Director General issues the decision within 15 days of receiving the report.
Official notification: The competent Finance Directorate informs the applicant of the decision.

The assessment report records the facility’s activity, location, tax number, affected assets, and the type, value, cause, and approved percentage of damage.

Before the inspection, ensure that the committee can access the affected buildings, equipment, and installations. Your facility’s representative should be ready to provide the relevant records and explain how the documented damage affects operations. The committee, rather than the applicant, determines the official damage percentage.

Documents required for tax exemption in Syria

To apply for the tax exemption for damaged facilities in Syria under Decree No. 69 of 2026, facility owners must submit documents establishing their business activity, fixed-asset ownership, and the extent and cause of the damage.

The application file should include:

Official application: The approved exemption request form obtained from the competent Finance Directorate.
Business and tax records: The commercial or industrial register, tourism licensing documents where applicable, and relevant tax registration information.
Financial and asset records: Available financial statements, a fixed-asset register, depreciation records, and documented asset values.
Proof of damage: Police reports or other official records, supported by dated photographs identifying the affected assets.
Technical evidence: Engineering assessments, condition reports, and available damage or repair estimates.
Additional supporting documents: Insurance records, industrial-city reports, and restoration contracts or invoices where relevant to the facility’s circumstances.

The competent Finance Directorate may require additional evidence or original or certified copies. Confirm its current documentation requirements before submitting your application.

How to apply for tax exemption for damaged Facilities

Applications under Decree No. 69 of 2026 are submitted to the competent Finance Directorate. The process involves five main steps:

Verify eligibility and the deadline: Confirm the facility’s tax registration, business activity, and applicable filing period.
Obtain the application form: Request the approved form and confirm the supporting documents required for your facility.
Submit the application: File the completed form and supporting records with the Finance Directorate, and retain proof of submission.
Cooperate with the assessment: Provide access to the damaged assets and any additional information requested during the official review.
Follow up on the decision: Obtain the assessment outcome and exemption decision, then consult your tax advisor on its application to your tax records.

Application deadline Under Decree No. 69 of 2026

The implementing instructions established a 120-day application period from their publication, with a possible extension of up to 60 days.

An October 4, 2026 notice from the Damascus Countryside Chamber of Commerce reports an extension of the filing period until November 1, 2026.

Before submitting an application, confirm with the competent Finance Directorate that this extension applies to your case and that no subsequent decision has changed the deadline.

Documenting repairs made before the damage inspection

Urgent repairs may be necessary to address structural hazards or restore essential operations before the official damage inspection. However, repairing or replacing affected assets can make their original condition harder to verify.

If restoration work has already begun, maintain a record that establishes:

Original damage: Dated photographs, technical reports, and available records showing the affected assets before repairs.
Repair work: The reasons for intervention, the scope of work, and photographs documenting the repair stages.
Supporting records: Contractor agreements, purchase orders, invoices, and completion reports linked to specific assets.
Removed equipment: Records identifying damaged machinery or components that were replaced or removed.

The implementing instructions recognize restoration contracts and invoices among the supporting evidence that may be submitted. However, previous repairs do not guarantee acceptance of the reported damage. The committee must still establish the officially approved damage percentage.

Where immediate safety measures are necessary, prioritize protecting people and preventing further damage while preserving available evidence.

How to align tax relief with facility reopening plans

The tax exemption for damaged facilities in Syria may reduce eligible tax obligations, but it does not directly finance repairs or replace the investment needed to restore operations.

Facility owners should therefore prepare a rehabilitation plan based on the technical condition of their assets and the resources available. The main priorities are:

Secure the facility: Address structural hazards and stabilize damaged buildings and installations.
Restore essential services: Repair the power, water, and mechanical systems required for safe operation.
Recover production capacity: Determine which equipment can be repaired, which requires replacement, and what materials or components must be procured.
Resume operations in phases: Test restored systems and reopen operational sections according to their readiness and business importance.

The expected tax relief can be considered in financial planning once its eligibility, scope, and duration are confirmed. Rehabilitation budgets and schedules should remain based on actual engineering requirements, available funding, and operational priorities, rather than assumed tax savings.

Factors that can affect tax exemption eligibility

Under Decree No. 69 of 2026, damage to a facility’s fixed assets does not guarantee eligibility for tax relief. Previous compensation, tax treatment, ownership changes, and inconsistencies in business records can affect an application.

The main issues to verify are:

Previous compensation: Full compensation received for the same damage may exclude a facility from the exemption. Any partial compensation should also be disclosed for review.
Earlier tax treatment: Losses already recognized for tax purposes may affect eligibility under the implementing instructions.
Ownership changes: Selling or transferring a damaged facility does not automatically transfer the tax exemption to its new owner.
Asset and registration discrepancies: Missing asset records, unsupported ownership claims, or inconsistencies between the registered and actual business activity may require further verification.

The exemption is generally tied to the affected taxpayer, but the implementing instructions provide limited exceptions:

Inheritance: The benefit may pass to heirs who continue the same business activity.
Merger: The resulting entity may retain the exemption in proportion to the damaged facility’s share.
Change of legal form: The exemption may continue if beneficial ownership remains with the original owner.

Before applying, clarify any previous compensation or tax treatment and verify how ownership changes affect your entitlement with the competent Finance Directorate.

How Qiwaa Advance supports damaged facility rehabilitation

Securing a tax exemption does not restore a damaged facility. Reopening requires a defined scope of work, suitable materials, and contractors capable of meeting the project’s technical requirements.

At Qiwaa Advance, we support relevant rehabilitation and reconstruction needs through two business sectors:

Qiwaa Contracting: EPC contracting, concrete structures, water networks, treatment facilities, and specialized restoration and construction works.
Qiwaa Trading: Sourcing construction and industrial materials, specialized equipment, and supply solutions based on project requirements.

To discuss your facility’s rehabilitation needs, share its location, type of activity, photographs of the damage, available drawings or bills of quantities, and the construction or supply work required.

Contact Qiwaa Advance to explore the contracting and material supply solutions relevant to your project. The official damage assessment and tax exemption decision remain the responsibility of the competent authorities.

FAQs about tax exemption for damaged facilities in Syria

Does damage exceeding 25% guarantee a tax exemption?

No. An officially approved damage percentage of at least 25% meets the damage threshold, but the facility must also satisfy the decree’s other eligibility requirements.

Can previously repaired assets be included in the assessment?

Previous repairs do not automatically exclude damaged assets from consideration. Restoration contracts, invoices, photographs, and technical reports can support the application, but the committee determines whether the evidence is sufficient.

Can the exemption be transferred when a facility changes ownership?

Generally, the exemption is tied to the affected taxpayer and does not automatically transfer to a new owner. Limited exceptions involving inheritance, mergers, or changes in legal form are subject to the implementing instructions.

Decree 69: Tax Exemption for Damaged Facilities in Syria – Do You Qualify?