The Council of Ministers has approved tax relief measures for private universities, colleges, and institutes, granting exemptions from penalties and additional charges relating to income tax and withholding tax, subject to the settlement of the principal tax liability and completion of the tax reconciliation process within the prescribed timeframes.
Under the decision, eligible private educational institutions will benefit from a 100% exemption from penalties and additional amounts, provided they pay the principal tax due and complete the tax reconciliation procedures within four working months from the date of the Council of Ministers’ decision.
A 50% exemption will apply to institutions that settle the principal tax and complete the tax reconciliation procedures during the subsequent four-month period following the expiry of the initial deadline.
Institutions that fail to complete the tax reconciliation process or settle the principal tax within the specified periods will not be eligible for any exemption and will remain subject to the applicable penalties and legal measures under Iraqi law.
The decision further authorizes the Ministry of Higher Education and Scientific Research to take the necessary legal and administrative measures against private universities, colleges, and institutes that fail to comply with their tax reconciliation obligations.
In addition, the Council of Ministers has mandated all private universities, colleges, and institutes covered by the decision to complete the required tax reconciliation procedures in accordance with the applicable legal requirements.
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