Iraq’s New Regulations on Fines and Interest Amortization

A new regulation concerning the amortization of fines and interest incurred by income taxpayers has been implemented with effect from 1 February 2024. This regulation provides relief to individual and corporate taxpayers by allowing them to amortize fines and interest if they meet specific conditions outlined by the General Commission for Taxes. Non-compliance with this provision will result in legal penalties for entities failing to pay fines and interest incurred.

Who does it affect?

This regulation applies to all income taxpayers, including both individuals and companies, except oil and gas companies and their subcontractors, cell phone communication service providers, and internet service provider companies.

How does it work?

Amortization is possible if the original tax liability is paid within a maximum period of four months from the date of incurring fines and interest.

How can we help?

As the leading law firm in the Middle East & North Africa Region and with strong tax experience across all industry sectors in the region, Al Tamimi & Company is well-placed to assist you and any company affected by the new regulation.