Iraq Corporate Income Tax

Corporate income tax rates and base

• Standard corporate income tax rate — 15% percent (flat rate at all income levels (no progressive scale)) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income)
• Oil & gas sector corporate tax rate — 35% percent (income from contracts with foreign oil companies, branches, offices and subcontractors in oil/gas production and related industries) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income)
• Tax base — Net profit from Iraq-source income, determined under the Iraqi unified accounting system (GAAP) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
• Withholding tax on dividends — 0% percent (dividends paid out of taxed profits are not taxed again in the shareholder's hands) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes)
• Withholding tax on interest to non-residents — 15% percent (interest on debentures, mortgages, loans, deposits and advances paid by residents to non-residents) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes)
• Withholding tax on interest between residents — 1.8% to 10% percent ((approx — confirm exact rate by instrument)) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes)
• Withholding tax on royalties (KRI) — 15% applied to a 75% deemed-profit base percent (for goodwill, trademark, patent, copyright and logo contracts (Kurdistan Region deemed-profit method; confirm federal treatment)) (Kurdistan Region Income Tax administration — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes)
• Withholding tax — non-upstream oil & gas contractors — 3.3% or 7% on all payments percent (applies to industries/activities (non-upstream) contracted with oil and gas companies) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes)
• Corporate return filing deadline — 31 May of the assessment year (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
• Corporate tax payment deadline — Within 3 days of the assessment date issued by the tax authority (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
• Advance / instalment payments — No quarterly or advance payment requirement during the tax year (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
• Mandatory tax inspection — A tax inspection is required to determine the liability and issue a tax clearance certificate (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)
• Statute of limitations — 5 years (extendable by the authority in certain cases) (Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/tax-administration)

Iraq applies a flat 15% corporate income tax on all profit levels, with a special 35% rate for the oil and gas production sector. Tax is assessed on Iraq-source income and is finalised through a mandatory tax inspection.