Conclusion of the annual employment tax filing season for fiscal year 2025 in Federal Iraq.

3 April 2026 – During the challenging situation currently unfolding in the Middle East, taxpayers in Federal Iraq remained bound by their tax filing obligations with the General Commission for Tax (“GCT”). 31st March is always an important milestone of the fiscal year, marking the annual employment tax filing deadline. 

While companies and their advisors usually start preparing well ahead to ensure compliance, the current situation has brought unforeseen challenges which required both resilience and backup plans.

Indeed, the filing of annual employment tax return must be completed physically at the GCT office, with the original return bearing wet stamp and signature from the branch manager and / or the employees. However, taxpayers have faced this year various roadblocks interrupting the usual operations: 

• Branch manager with signing authority stranded abroad due to flight disruptions; and no possibility to delegate power
• Delays with courier carriers preventing from sending the original returns on time

Considering the penalties applicable to late filing and the objectives of taxpayers to remain compliant with their statutory tax filing obligations, Deloitte has worked around the clock to finalize the preparation of returns well ahead and allow sufficient time for courier. Acknowledging however the struggles and difficulties remaining for a number of taxpayers, an exceptional approval was obtained from the GCT to submit scan copy of the return (with digital signature and stamp) – with the condition that the originals will be submitted as soon as possible. 

The early implementation of this practical approach and the collaboration of the GCT were key in resolving the situation, allowing satisfactory outcome for all parties. Although the GCT demonstrated positive support to taxpayers during those challenging times, we note however that this approach shall not set precedence for future filings and does not engage the GCT to accept any filings contravening with the terms of the tax legislation. 

What’s next? 

With the annual employment tax filing having been successfully completed within the deadline for majority of taxpayers, the next step is now to initiate tax assessments. In line with the Tax Reform provisions, the tax assessments for employment tax can be obtained on a provisional basis through the ‘self-assessment’ approach. 

We note that the GCT remains fully operational, although with a reduced number of inspectors considering the current context, which may delay some of the tax procedures including assessments. Deloitte tax team in Iraq is however available to support with any of the steps required.