The Impact of Applying the Percentage of Complete Method or the Complete Contract One on the Taxation of the Long – Term Construction Contracts

بحث تطبيقي في الهيئة العامة للضرائب – قسم الشركات

Authors

  • علي حسين خضير
  • موفق عبدالحسين محمد, أ.م.د. المعهد العالي للدراسات المحاسبية والمالية / جامعة بغداد

Abstract

The research aims to shed light on the amount of proceeds annual tax for each of the way the contract total and percentage of completion method - see which is better - as well as the current problems arising from the application method of the contract in full in settling accounts tax - to identify problems - related to postpone settling accounts tax in accordance with the way the contract fully and determine the advantages and disadvantages of each of the methods through practical application , and then use the results as inputs to help in the decision to confirm the continuation of the GCT using a full decade in settling accounts tax for long-term construction contracts or forgo them.

Were the result of research the existence of a fiscal gap in proceeds annual tax due to divergence value of income subject to the charge of tax for each of the two methods , have concluded search to a set of conclusions , including that the adoption of the way the contract in full , accompanied by many problems as it is not the best way for approval in settling accounts tax for this type of activity and contracts , as well as a set of recommendations , including the possibility of adopting the percentage of completion method of tax charge for this type of activity and contracts.

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Published

2014-12-01

Issue

Section

Paper research

How to Cite

The Impact of Applying the Percentage of Complete Method or the Complete Contract One on the Taxation of the Long – Term Construction Contracts: بحث تطبيقي في الهيئة العامة للضرائب – قسم الشركات. (2014). Journal of Accounting and Financial Studies ( JAFS ), 8(25). https://jpgiafs.uobaghdad.edu.iq/index.php/JAFS/article/view/547