Evaluation of Financial Effect for Real Estate's Tax in Iraq For the Period (2003-2016)

Abstract

    Real estate's tax is an annual in kind tax imposed on the total or actual income or the income which is determined by the law of owned or rented real estate's property, normally it is imposed permanently with low rates with enlarging the exemptions up to the importance of that property, that procedure is applied in obtaining this tax in Iraq currently.

Normally, this tax is enacted legally, as there is no tax without a law, the law of real estate's tax in Iraq is term (162) of the year (1959) and it's modifications, this tax was enacted due to urgent reasons, financial one is one of them, because it is a source of the state tax incomes' sources to face the entitlements of state expenses of the country also for social and economic aims.

Obviously, this tax in Iraq wasn’t affecting enough as it was too small and, nearly, didn’t meet the intended goal that the tax was enacted for, that was for many reasons, legislative, managerial and corruption plus the circumstances of the country, in spite of the income tax doesn’t care about the personal status of the client , in spite of that the enactor put in his mind the magnitude of the annual income before imposing the additional tax, this procedure is mere a caring about to what the client is facing from burdens, generally, the real estate's tax in Iraq bears lower indications but it contributes in providing the total tax income anyway.