Corporate Tax - Book Year 2018


As is known, there are now 2 departments within the tax authorities in KRG concerning the corporate tax declaration.


1. The department of large tax payers

This department started a few years ago and a group of companies (mostly oil and gas companies) were transferred to this department.


2. The old department

Is a department in which contains all other companies.


Handling corporate tax 2018

Corporate tax declaration must be done between 1 January and 30 of June of the year following the declaration year.

 Over the book year 2018 is a statement requested by tax authorities from the local auditor in which the local auditor declares that they are responsible for the figures of the company they audit.


On the other side the syndicate of auditors refuses to make the requested statement, because they can never be responsible for the figures of a company that they audit.

Unfortunately, this is still the case despite several meetings of the syndicate. This conflict has still not been resolved and the period for submitting corporate tax declaration has been extended by 5 months.

For this reason the definitive tax return cannot be accepted by the tax authorities because the syndicate refuses to give the relevant statement.  


In the meantime, companies do need to handle tax returns and need the clearances to function.


That is why companies can submit a provisional declaration, pay taxes and receive the necessary clearances. However, they must submit the final declaration later, when the conflict between them and Syndicate of auditors is resolved.


This decision of the tax authorities concerning the local auditor's statement does not apply to the large taxpayers department.  This department is not requesting the declaration from auditors.


Unfortunately, all companies that are still in the normal tax department have to deal with this measure.