# Order 37: Tax Strategy for 2003

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COALITION PROVISIONAL AUTHORITY ORDER NUMBER 37
TAX STRATEGY FOR 2003
Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA),
and under the laws and usages of war, and consistent with relevant U.N. Security Council
resolutions, including Resolution 1483 (2003),
Determined to create conditions suited to the economic reconstruction of Iraq,
Noting that the Tax Commission has not been operational,
Determined to complete a broad review of taxes in Iraq, in order to improve the operation
and efficiency of the tax system,
Recognizing that these collections are for the benefit of the Iraqi people, and, as far as
possible, are in accordance with the rules of assessment and incidence in effect under
existing law,
Recognizing that until such a review is completed an interim tax strategy for the
remainder of the year 2003 is required,
I hereby promulgate the following:
Section 1
Definition
For the purposes of this Order “tax” means any tax or charge having the effect of a
tax, including, without limitation, any income, value added, ad valorem, estate,
occupational, professional, real property or municipal tax, and any levy, duty,
withholding or fee.
Section 2
Suspension of Taxes
Subject to Section 6 of this Order, the following taxes are suspended from April 16,
2003 to the end of calendar year 2003:
a) All income tax for assessed income resources detailed in Article 2 of Income Tax
Law Number 113 of 1982;
b) Real property rent tax in accordance with Law Number 162 of 1959, as amended;
� c) All other taxes not specifically identified in Section 3 below.
Section 3
Specified Taxes
1) The following specified taxes shall continue in force, and shall be levied for the
remainder of the calendar year 2003:
a) Excellent and first class hotel and restaurant tax in accordance with Resolution
Number 36 of 1997;
b) Tax upon the transfer of real property in accordance with Resolution Number 120
of 2002;
c) Car sale fee in accordance with Resolution Number 80 of 1998 and previous
relevant laws in force;
d) Petrol excise duties including, but not limited to, those provided for in Law
Number 9 of 1939, Resolution Number 82 of 1996 and the Order Number 66 of
1999 issued by the Economic Affairs Committee.
2) The taxes specified in paragraph 1 above shall not apply to the following persons or
entities:
a) Coalition Provisional Authority;
b) Coalition Forces;
c) Forces of countries, their contractors and sub-contractors, acting in coordination
with Coalition Forces;
d) Coalition contractors and sub-contractors, as defined in CPA Order Number 17,
who supply goods directly to or on behalf of the Coalition Provisional Authority
and Coalition Forces;
e) Departments and agencies of Coalition Forces’ governments, and their contractors
and sub-contractors that are providing technical, material, financial and human
resource assistance to Iraq;
f) Governments, international organizations, and not-for-profit organizations
providing technical, material, financial and human resource assistance to Iraq;
g) Members of the above categories to whom goods are consigned or by whom goods
are imported for their personal use.
CPA/ORD/19 September 2003/37
� Section 4
Income Tax Rates in Future Years
The highest individual and corporate income tax rates for 2004 and subsequent years
shall not exceed 15 percent.
Section 5
Tax Procedures
Notwithstanding any other provision in this Order, the tax laws as set out in existing
Iraqi law, including those detailed in Tax Law Number 113 of 1982, with regard to
the tax procedures, including tax rates, the system of collection, enforcement
procedures, appeals, and the imposition and rate of penalties and interest for nonpayment
or late payment of taxes, shall remain in force unless or until amended by the
Administrator of the Coalition Provisional Authority or an internationally recognized,
representative government of Iraq.
Section 6
Retention of Collected Taxes
Taxes that have already been paid to the government or otherwise held by the
government shall remain government property and are not liable to be returned to the
taxed party.
Section 7
Relation to Existing Law
In order to give effect to this Order, all existing Iraqi law which is inconsistent with
this Order is hereby suspended.
Section 8
Administrative Instructions
The Administrator of the Coalition Provisional Authority or his delegee may issue
Administrative Instructions to give effect to this Order.
CPA/ORD/19 September 2003/37
This work is in the public domain in the United States because it is a work of the United States federal government (see 17 U.S.C. 105).
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