OpenAccountants/Iraq/Iraq Corporate Income Tax

Iraq Corporate Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: corporate income tax for Iraq (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.

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Key figures — Iraq, 2025

Every figure is drawn from this Tax Guide and cited to its source.

Standard corporate income tax rate

15%Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/taxes-on-corporate-income

Oil & gas sector corporate tax rate

35%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%Income Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes

Withholding tax on interest to non-residents

15%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%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 baseKurdistan 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 paymentsIncome Tax Law No. 113 of 1982 — https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes

Corporate return filing deadline

31 May of the assessment yearIncome 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 authorityIncome 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 yearIncome 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 certificateIncome 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

Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.

The full Guide

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.

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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)