Our Dearest Business Partner:

We are writing to inform you of a significant development regarding tax liabilities in Iraq, as per the Council of Ministers Resolution No. 24074 dated January 23, 2024. This new legislation provides a potentially beneficial opportunity for both individual taxpayers and companies subject to Income Tax obligations.

Resolution Overview: The Council of Ministers has approved a waiver of all penalties and interest accrued on income tax for all taxpayers (both individuals and companies), with the notable exceptions of oil companies, mobile telephone companies, internet service providers, and subcontracting firms with foreign oil companies.

Key Condition: To avail of this waiver, the principal amount of the income tax must be paid in full within a four-month window. This means that the deadline for payment to benefit from this waiver is May 23, 2024. It is crucial to act promptly to meet this deadline to benefit from the waiver.

Consequences of Non-compliance: Should there be any failure to comply with the payment within the stipulated timeframe, legal penalties will be reinstated and enforced.

Action Required: If this waiver applicable to you, we recommend begin preparations of waiver application to ensure that the principal tax amount is settled by the May 23, 2024, deadline. We can support to facilitate this process and to clarify any specifics regarding your tax situation and to arrange for payment. Our team is on hand to provide guidance through this process, including reviewing your tax records, advising on the necessary steps to ensure compliance with this resolution, and assisting with the procedural requirements at the Iraqi Tax Commission.

Should you require further information or assistance, please do not hesitate to contact our office directly.

Al Hadeel Al Hasan Law Firm

Al Hadeel Al Hasan

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