81311798-Implementation of a Tax Number Generation System including hardware

The Finance and Financial Market (FFM) Program in Iraq is a multi-donor action commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), co-funded by the European Union (EU) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The government of Iraq has defined comprehensive reform measures to embark on an inclusive development path based on stable and accountable institutions. The aim is to diversify domestic revenue mobilisation to get away from the current near complete dependence on oil revenue. To this end, the project is supporting government efforts to modernise the non-oil domestic revenue generation system through institutional and human capacity development. This is supported by the Tax Reform Component - one of the FFM program"s four components. The aim is to support the establishment of a transparent and accountable revenue generation system that is capable of mobilising revenue in a fair manner for service delivery to the citizens, especially the vulnerable women and children who are mostly affect by the prolonged conflict. Overall, this multi-donor action puts emphasis on developing long-term abilities of its partners such as Ministry of Finance (MoF), General Commission of Taxes (GCT), and Iraq Custom Authority (ICA). Particular focus is placed on the key revenue generating institutions and other non-oil revenue generating departments and commissions with strong potential for transforming the revenue base from near complete dependence on oil revenue to non-oil revenue. Registration of taxpayers is the basis for the creation of Unified State Register of Taxpayers be legal entities and individual businesses. This allows comprehensive control of the time system and timely payment of taxes as they are due. The future tax system is built on effective legal and regulatory frameworks for taxpayer registration, providing clear and unambiguous criteria which distinguish the particularities of registration of organizations and private persons (individual entrepreneurs). A digital tax registration system by GCT of non-oil revenue tax administration built on modern primarily paperless processes, integrated with other government and financial institutions, is not -existent. Multi-channel services, built on simplified, near real-time processes to reduce the administrative burden to taxpayers and public servants is missing.. Consequently, taxpayer compliance is very weak (there are 4,800 active taxpayers registered in whole of Iraq as of beginning of 2024). Currently, Iraq government already distributes a Taxpayer Identification Number (TIN), a unique number provided by a tax authority to individuals or business entities to pay taxes. It helps the tax authorities and government to keep track of taxpayers registered and their current balance. Most countries have some form of a taxpayer identification number as cited above. A tax ID can also be used to identify businesses or individuals for non-tax purposes, such as opening a bank account or applying for credit. In Iraq, the current TIN needs to be replaced by a modern TIN which can guarantee uniqueness at larger scale during future continuous rollout of the new TIN across the country. The aim is to introduce a unique taxpayer identification number to all taxpayers registered across the country. The configuration of a new TIN will be based on defined specifications and will be used by the GCT, customs, and other government departments and statutory bodies. The TIN will be implemented based on international best practice which ensures security and eliminates duplication. The new TIN and a corresponding TIN registration system will lay the foundation for the future comprehensive development of an Integrated Tax Administration System (ITAS), which might be introduced within the next years (but is not part of this assignment).