Taxes, a paramount source of governments’ revenue across the globe contributes preponderant portion for the development of world economies. Most of the developed countries also receive a majority part of their GDP such as 10% in United States, 31.4 % in Japan and 24.9 % in United Kingdom while few developing countries have around 15% tax percentage of GDP. Also the countries belonging to MENA countries have a tax % of GDP at 16.5% in Turkey, 14.8% in Jordan and 7.4% in Saudi Arabia. Comparatively, Iraq have only 1.33 tax % of GDP. Many studies have been carried out in identifying the reasons behind low tax revenue. This paper attempts to identify if there is a good awareness towards taxation policies among the employees in the Kurdistan Region of Iraq (KRI) by distributing questionnaires through online. The research also attempts to recognize people perception with respect to the functioning of the government to eliminate tax evasion. The responses are collected from 122 employees, and Statistical techniques such as Mean, Standard deviation and Chi-square test are used to analyze the data and to identify of there is any relation between the Tax awareness, motivating factors, perception towards tax evasion with tax compliance using SPSS software. The results disclosed that there is a lack of awareness about the taxation policies in the autonomous region and there is a remarkable attachment between the dependent and independent variables. And the local administration needs to upgrade its contribution to assembling the tax proceeds.