Baghdad
EY
Mail address: P.O. Box 6004
Baghdad Iraq
Street addresses: Baghdad office
Al-Ameerat St.
Al-Mansoor Block 609 Street 3 House 23 Baghdad Iraq
Erbil office Gulan St. English Village Villa 284
Erbil, Kurdistan Region Iraq
Executive and immigration contacts
Jacob Rabie
+962 (6) 580-0777 (resident in Amman, Jordan)
Email: jacob.rabie@jo.ey.com
Mustafa Abbas +964 (1) 543-0357 (resident in Baghdad) +964 7700-824-139
Email: mustafa.abbas@iq.ey.com
Ali Samara
+962 (6) 580-0777 (resident in Amman, Jordan)
Email: ali.samara@iq.ey.com
Abdulkarim Maraqa +964 750-798-4444 (resident in Erbil, Kurdistan +964 7700-454-4444 Region of Iraq)
Email: abdulkarim.maraqa@iq.ey.com
Xavier Delaunay +971 (56) 406-1072 (resident in Dubai,
Email: xavier.delaunay@ae.ey.com United Arab Emirates)
A. Income tax
Who is liable. Iraqi nationals and foreigners working in Iraq are subject to tax on their income derived from Iraq (including the Kurdistan Region of Iraq). In addition, Iraqi nationals residing in Iraq are subject to tax on income earned from all sources (Iraqi and foreign-source income).
Iraqi nationals are considered residents of Iraq for tax purposes if they reside in Iraq for only one day. Non-Iraqi nationals (including nationals of other Arab countries) are considered residents of Iraq for tax purposes if they meet certain residency criteria.
The concept of residency as described above is important to residents of Iraq when determining the availability of certain personal allowances (see Deductions).
month of withholding. An annual filing is also required by 31 March of each year. If the monthly personal income tax payment is not made by the deadline, a penalty of 5% of the tax amount will be imposed on the employer after the lapse of 21 days from the fixed date. This penalty will be doubled if the amount is not paid within 21 days after the expiration of the first period. In addition, interest equal to the current banking interest applied by Al-Rafidain Bank on overdraft facilities at 11% is charged on the tax due amount until the date of payment.
In the Kurdistan Region of Iraq, employers are responsible for and should guarantee the payment of tax to the General Directorate of Taxation (GDT), which is the Kurdistan Region of Iraq tax authority. Tax is withheld from the employees’ income for each month of the fiscal year. The withheld tax must be sent quarterly to the GDT by the 21st day of the month following the end of the calendar quarter. An annual filing is also required by 1 March of each year. If the quarterly employee income tax is not paid by the 21st day of the month that follows the end of the calendar quarter, a penalty of 5% of the tax amount is imposed on the employer. This penalty is doubled if the amount is not paid within 21 days after the expiration of the first period. In addition, interest equal to 1.5% per month (with partial months counting as a full month) will be charged from the due date up to the date of payment.
E. Single-entry visas
Foreign nationals who intend to visit Iraq must obtain an entry visa. The most common form is a single-entry visit visa from the Directorate of Residency of the Ministry of Interior. The singleentry visit visa allows the visitor to enter Iraq within three months of the visa’s issuance. A visa typically allows the person to remain in Iraq for 30 days. The procedures for entry into the Kurdistan Region of Iraq may vary.
F. Business/multiple-entry visas
Foreign nationals who intend to stay or work in Iraq for longer than 30 consecutive days (whether they are assigned to Iraq indefinitely or are commuters or rotators) must apply for a business visa (a multiple-entry visa). An Iraqi limited liability company or Iraqi branch of a foreign entity established to undertake work in Iraq must take the following steps to apply for a business visa (multiple-entry visa) with respect to each foreign employee:
• The company must apply for the employee’s business visa (multiple-entry visa) through a request letter from the governmental entity with which the company deals (for example, the Ministry of Transportation) that is addressed to the Department of Immigration and Residency, together with the passports, the application form and the company’s corporate documents.
• If the application is approved, the Department of Immigration and Residency informs the company by issuing a Letter of Invitation containing the name of the employee and confirming that the request is accepted and that a business visa (multipleentry visa) valid for three months, six months or one year is granted to the employee.
• Based on the Letter of Invitation, the employee is required to visit the Iraqi Embassy in his or her home country and get a sticker on his or her passport confirming the payment of the