In confirmation of the provisions outlined in the Direct Tax Withholding Instructions No. (1) of 2007, the Director General of the General Commission for Taxes, through his circular No. (1357), Ref. No. (61), dated 18 September 2024, has directed that the social security schedules must be relied upon in the calculation and collection of income tax (Direct Tax Withholding).

Upon a kind invitation[HB1] , our firm was pleased to attend “Synergy for Digital Iraq – Empowering the Future Economy” event, hosted at KAPITA’s premises On Thursday, September 12, 2024. Representing our firm were Mr. Muqdad Sami Al Juboori, Managing Director, and Ms. Hiba Basim Khaza’al, Management and Partner at the firm. The event gathered approximately 80 participants, including entrepreneurs, professionals, and representatives from small and medium-sized enterprises (SMEs).

The event featured a diverse panel of esteemed speakers, including: Mr. Mohammed Al Najjar, Advisor to the Prime Minister for Investment Affairs and CEO of the Iraq Development Fund, Mr. Bassem Al Attiyah, CEO of Aalsaree3 Holding, , Mr. Adham Al Fekhar, President of the Iraqi-French Business Council, Mr. Mohammed Al-Gharbawi, Director of The Information Technology Department of the Iraqi Communications and Media Commission, Mr. Ayman Al Hasnawi director of Regulatory Affairs Department in Asiacell, and Mr. Mujahid Al Waesi, Founder and CEO of KAPITA (moderator). 

 The key theme of the event was the importance of digital transformation and its far-reaching impact across all aspects of life, from small family businesses to large institutions and governmental entities. Speakers provided valuable insights into the concept of “Digital Transformation,” emphasizing its relevance to the growth of Iraq’s economy. A significant resource shared at the event was KAPITA’s study on the “Iraq Digital Economy,” produced by their research and studies team, and it delves into the current state and future prospects of digital integration in Iraq.

During the panel discussion, attendees engaged in a vibrant exchange of ideas, sharing perspectives and posing questions on how different sectors can support and implement digital transformation in Iraq. The speakers addressed these queries thoughtfully, outlining the progress and future endeavors aimed at accelerating Iraq’s digital evolution.

We extend our sincere gratitude to KAPITA for inviting us to this impactful event. At Al Muhamoon Al Mutahidoon we value opportunities to participate in such forward-thinking initiatives and look forward to  opportunities contributing to the future of Iraq’s digital economy.

In accordance with the Council of Ministers Decision No. (24340) of 2024, which includes the approval of the recommendations of the Executive Order Committee No. (23602) regarding the rectification of the legal status of foreign workers, the Ministry of Labor and Social Affairs recently announced the launch of the legal status rectification form for foreign workers who entered Iraq officially through all border crossings and airports (excluding the Kurdistan Region), starting from June 25, 2024, for a period of 45 working days.

This decision provides an opportunity for foreign workers who have not been issued a work permit to rectify their legal status without referring violators to the competent court, which mandates the rectification of the legal status of violating foreign workers by issuing a work permit and paying a fine that may reach up to three times the worker’s monthly wage according to Article (36) of the Iraqi Labor Law No. (37) of 2015.

Applications for rectification can be submitted via the following link https://eservice.ur.gov.iq/user-auth. The fees for the rectification request should be paid at the Ministry of Interior / Directorate of Civil Status, Passports, and Residency in coordination with the Ministry of Labor and Social Affairs. The Labor and Vocational Training Directorate has indicated on its website that, in coordination with the Iraqi National Intelligence Service and the Directorate of Residence Affairs, it will conduct inspection visits to work sites and take legal action against violators.

For further inquiries regarding the application conditions for rectifying the status of foreign workers and the associated fees, you can contact us through the following means:

• Mobile: 07809030275
• Email: office@ulf-iraq.com

In response to the kind invitation from Baghdad Business School (BBS), our firm organized a specialized training workshop on June 25, 2024, focusing on company registration and related obligations in Iraq that is addressed to She Codes Too Program students consisting of 22 females. Representing our firm at this workshop were Ms. Hiba Basim Khaza’al, Management and Accounting Manager (Partner); and attorneys Mr. Anas Duraid Zaki, Ms. Ola Swidan Khudair, and Ms. Hiba Najeh Al Maliki.

The workshop was opened by Hiba Basim, who welcomed the attendees and encouraged them to work diligently and creatively, emphasizing that women are capable of leadership and that success requires continuous effort to achieve financial independence.

The workshop covered three main topics:

1.Company Registration: Presented by Ms. Ola Swidan, this session covered the definition of a company, the process of company formation, and the requirements for company registration under Iraqi law.

2.Tax Obligations: Presented by Mr. Anas Duraid, this session explained the tax obligations for companies, including how to open a tax file and perform annual tax filings.

3.Social Security: Presented by Ms. Hiba Najeh, this session detailed the obligations of companies towards the Department of Social Security and Pension for Workers and their employees, as well as organizing the mutual relation.

Essentially, Ms. Hiba Basim concluded the session by interacting with the attendees, listening to their questions, where our team answered all of them, resulting in a successful and informative workshop for business owners and those seeking to incorporate their own.

We extend our sincere gratitude to BBS for their kind invitation and giving us this chance to effectively participate the program and we look forward to further collaboration assisting Iraqi youth. We also reaffirm our ongoing commitment to supporting such events that benefit the community and enhance legal and business knowledge among its members.