Arabic and Kurdish
38,146,000 (as of 2019)
The economy of Iraq has been struggling in recent years due to a number of factors, including the ongoing conflict in the region, the decline in oil prices, and the impact of the COVID-19 pandemic. According to the World Bank, Iraq’s GDP in 2020 was estimated to be $179.3 billion, a decrease of 4.2% from 2019. The unemployment rate in Iraq was estimated to be 8.7% in 2020, up from 8.3% in 2019. Inflation in Iraq was estimated to be 6.2% in 2020, up from 4.2% in 2019. The country’s budget deficit was estimated to be 8.3% of GDP in 2020, up from 6.3% in 2019. Iraq’s public debt was estimated to be $90.3 billion in 2020, up from $86.3 billion in 2019. The country’s current account balance was estimated to be -$3.3 billion in 2020, down from -$2.3 billion in 2019.
Iraq has a tax system that applies to both individuals and corporations. Here is an overview of the taxation system in Iraq:
- The corporate tax rate in Iraq is a flat rate of 15% for most types of companies.
- However, some types of companies, such as oil and gas companies, are subject to different tax rates.
- Corporations are required to file their tax returns within four months of the end of their fiscal year, and tax payments are due at the time of filing.
- Companies are also required to pay a minimum tax based on their capital, which ranges from 0.25% to 0.5% per year.
- The personal income tax system in Iraq is also progressive, with tax rates ranging from 3% to 15%.
- The tax year in Iraq runs from January 1st to December 31st.
- Individuals are required to file their tax returns by the end of April each year, and tax payments are due on the same date.
- There are also several deductions and tax credits available to individuals, including deductions for medical expenses and education expenses.
Tax Payment Process:
- Tax payments can be made at designated banks or tax collection offices.
- The Iraqi tax authorities provide taxpayers with a tax return form each year, which can be completed on paper.
- The tax return must include information about the taxpayer's income, expenses, and deductions for the previous year.
- The tax authorities will then calculate the taxpayer's tax liability and send them a tax assessment.
- Taxpayers can choose to pay their taxes in a lump sum or in installments throughout the year.
In summary, Iraq has a progressive taxation system for both individuals and corporations. Tax returns must be filed by the end of April each year for individuals, and within four months of the end of the fiscal year for corporations. Tax payments are due at the time of filing. Taxpayers can make their payments at designated banks or tax collection offices.
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