Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/24/2013

Iraq - Tax issues encountered by foreign investors 

July 24: Foreign investors may view Iraq as offering certain opportunities. As the country emerges from years of conflict and economic sanctions, the government is undertaking massive reconstruction projects to restore its infrastructure and develop its economy.

The Iraqi government is also working to make its tax system more attractive to foreign investment. Still, challenges that investors face are:


  • Unclear meaning of oil- and gas-related activities
  • Uncertain tax treatment of assets under off-take agreements
  • Difficulties in obtaining tax refunds
  • Difficulties in obtaining credit for amounts withheld
  • Unclear accounting treatment of assets
  • Taxation of sales of Iraqi company shares
  • Over-application of retention tax

Read a July 2013 report prepared by KPMG International: Iraq – top tax issues facing foreign investors




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