Deloitte: Despite the tax complexities, Iraq still offers investment opportunities for foreign compa

Deloitte: Despite the tax complexities, Iraq still offers investment opportunities for foreign companies


 Baghdad / Range

An expert on economic affairs called on the responsible authorities to take into account the comments made by Deloitte, the largest professional services company in the world, in which it indicated that the Iraqi authorities did not fully implement the self-assessment system for taxes. The introduction, being written in accordance with high standards of accuracy and on the basis of clear and explicit figures, pointing at the same time that the tax system in Iraq underdeveloped and unstable so far, which requires the need to deal electronically to obtain taxes and customs duties and tariffs.

Deloitte, the world's largest professional services firm, has launched a business guide to understand the tax situation in Iraq, stating that the Iraqi authorities have not fully implemented the self-assessment system for taxes. To guide companies and support their customers and interested parties in Iraq, in order to highlight the main areas that require consideration, for each of the companies looking to invest in Iraq for the first time, and those who have experience and are currently working in Iraq. According to the economic expert in the name of Antoine in an interview with (the extent), that the responsible authorities to take into account these reports because they write according to high standards in accuracy, sending: I agree with what went to him this company, they work accurately and personalized through accurate standards What are the obstacles and give degrees to this country or that they come out with important results. For example, when they make Iraq in 120 of 170 countries, they are based on clear and explicit figures.
"The Iraqi government should take these reports into consideration," Antoine said. "We should not reject or take a fanatic stance on these remarks. He explained: who criticizes me on a certain point to see what the problem and go to address it and overcome the obstacles. He pointed out that there is a committee in the Prime Minister's Office, led by one of the advisers, whose task is to overcome these obstacles and follow the international reports on all subjects. Unfortunately, the tax system so far in Iraq is unstable and has no proper structure in the accounting process. The tax base in Iraq is still unclear, especially in the direct tax imposed on individuals and companies operating in Iraq, Antoine said. Stressing: The Iraqi government has put an amount of taxes in the budget nearly ten trillion dinars to supplement the deficit, and part of this amount is obtained from investors and companies operating in Iraq, although this was not calculated in the past years, because oil was covering expenses. But after the oil price fell in the last two years, the tax system has been put in place, but there is a problem. We are hard to get the 10 trillion dinars to evade many taxpayers and their non-compliance.
He stressed the economic expert: The General Authority for tax collection has a significant failure in its work and need to e-government, including the meaning of "electronic deal" to obtain taxes and customs duties and tariffs. Mirdfa: Unfortunately, so far, her work is still underdeveloped and our system is underdeveloped and can not achieve the figure mentioned in the budget for taxes. Stressing that this matter must have an impact on the work of investors in Iraq. Antoine said: that there are a number of conferences were held in and out of the country, including a week ago in London and Paris and is working to attract foreign investors to work in Iraq. However, when we go to these conferences, we must explain to the foreign investor the tax system in Iraq in a precise and clear manner, so as not to collide when Iraq comes with great obstacles other than what we are talking about. "There should also be a legal environment attractive to the investor to pay the tax transparently and without any extortion or harassment even.
The economic expert: The investor puts in his account the percentage of profits when he invests, because these are the global standards and the environment attractive to investment. The investor is assured to work in the country in a smooth and orderly manner. Investment in all countries of the world flows easily and with high flexibility, because of a good, safe and easy environment. Stressing: The investor when he finds obstacles will be coming to this country, which calls on us to emphasize the importance of lifting obstacles to investors and familiarize them with the reality of the current environment of this country.
Director of the Tax Department of Deloitte Jane Stokes also confirmed in a press statement that the Iraqi authorities did not fully implement the system of self-assessment of taxes, and the process is still affected by the review of the Commission requests for tax return provided. "However, there is a perception The Commission has the impression that taxpayers are not doing enough to participate effectively in the discussion with the IRS. "
"In spite of the complexities in this area, it still provides investment opportunities for foreign companies, but in the light of the approach adopted by the General Authority for Taxation, it is important for my motivation," said Alex Lo, partner in charge of international tax services at Deloitte Middle East. Both new and advanced business activities in Iraq, to ​​take proactive steps from the beginning, to ensure compliance with the obligations of tax filing in Iraq.
Deloitte's report provides significant tax considerations for doing business in Iraq and highlights the most important factors influencing their operations, such as regulatory, economic, and market developments. The guide also addresses the sectors that attract investment and rich opportunities and considerations to enter the market, in addition to the procedures necessary to establish companies in Iraq.
The General Budget Law of 2017, in Article 24 to Article 31, stipulates the need to impose taxes on non-essential goods, mobile phone and internet services, improve the level of improvement and tax collection, use automation methods and advanced technology to limit taxpayers, And fines and wages, which are realistic amounts of passage of several decades to be approved, with administrative reforms in the infrastructure of the departments of customs and taxes.

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