A legal reading of the use of tax incentives in the amended Federal Investment Law No. (13) of 2006 and the Kurdistan Region Investment Law No. (4) of 2006

Abstract

We are not being unfair if we say that granting tax incentives has become a required necessity and an influential and effective factor in stimulating, attracting and encouraging foreign and national investment. It is recognized that the tax policy of countries suffers from several problems. At the forefront are the problems of tax legislation. Despite the abundance of tax exemptions and allowances in the laws and legislation of these countries, they suffer from a scarcity of use of tax incentives, as these tax policies are no longer able to achieve their financial, economic, political and social goals due to adding a new burden to their obstacles, which is in At the same time, it contributes to the failure to apply its tools to all members of society and to achieving tax justice on the one hand, and on the other hand to investors (foreign and national), and since tax incentives are a double-edged sword, if they are misused in an unintentional manner, it will contribute to the decrease in the tax abundance obtained from Tax revenues entering the public treasury, and financial and administrative corruption in the state’s economic facilities will increase. Therefore, tax legislation should take into account the provision within the articles of its investment laws for tax incentive programs in accordance with studied legal mechanisms, and seek to amend Federal Investment Law No. (13) of 2006 AD, amended by Law No. (2) of 2010 AD, and Law No. (50) of 2015 AD, with a new amendment that includes On tax incentives clearly, as well as amending the Investment Law in the Kurdistan Region No. (4) of 2006 AD, which has become one of the old laws that needs fundamental amendments to its legal articles, and its inclusion of tax incentives.