Iraq introduces Tax Incentives for Point-of-Sale (POS) Terminals

By John Lee.

The Iraqi Cabinet has approved the recommendations of the Ministerial Council, encouraging the use of electronic point-of-sale (POS) terminals.

The use of electronic transactions has been shown to improve security, efficiency and convenience for retailers and customers.

Specifically, the cabinet approved the following measures:

1. The Central Bank of Iraq (CBI) simplifies the process for obtaining licenses and lowers fees for point-of-sale (POS) devices.
2. Governmental, non-governmental, and mixed departments, trade unions, and centers must open bank accounts and provide POS for electronic payments.
3. Private schools, universities, colleges, and fuel stations must open bank accounts and provide POS for electronic payments.
4. Commercial centers, stores, restaurants, pharmacies, and private clinics must open bank accounts and provide POS for electronic payments.
5. Banks must provide POS for electronic payments to customers.
6. Importation of POS and ATM devices for payment and collection systems is exempt from customs fees and taxes.
7. Electronic payment transactions using POS are exempt from taxes.
8. Implementation effective June 1, 2023.

(Source: Govt of Iraq)

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