Federal Iraq has extended the waiver to include late payment penalty and interest has been saved
Federal Iraq has extended the waiver to include late payment penalty and interest
What does this mean for businesses?
The tax authority in Federal Iraq has clarified that the waiver issued on 19 August 2019 has been extended to cover late payment penalties and interest. Our previous alert is available on the following link.
Based on discussions with the Iraqi General Commission for Taxes (GCT), we understand that in order for the extended waiver to apply to penalties and interest, the late filing must relate to a period before August 2019. In line with the initial waiver, an application must be submitted to the GCT before 18 August 2020.
A summary of all penalties and interest covered by the waiver are listed below for your reference.
Attached is the English translation of the extension to the waiver. The English text in this document is not an official translation and is provided for information purposes only. If you would like a copy of the official Arabic version please contact us.
Summary of penalties and interest
The waiver now applies to the following interest and penalties:
*Corporate income tax interest is applied from the date the final assessment is issued by the tax authority and employment tax interest is applied from 1 July of the year for which payment is late.