Iraq Personal Income Tax

Personal income tax rates and bands

• Band 1 — up to IQD 250,000 — 3 percent (approx — confirm whether bands are annual or monthly) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Band 2 — IQD 250,000 to 500,000 — 5 percent (approx — confirm) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Band 3 — IQD 500,000 to 1,000,000 — 10 percent (approx — confirm) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Band 4 — over IQD 1,000,000 — 15 percent (approx — confirm) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Non-resident taxation — Income derived from Iraq is taxed at the same progressive rates regardless of residence (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Annual personal allowance — single (bachelor) — 2,500,000 IQD (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Annual personal allowance — married — 4,500,000 IQD (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Age allowance (taxpayer over 63 years) — 300,000 per year IQD (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Child allowance — 200,000 per child per year IQD (child must have no income, be under 18, and be in full-time study) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Risk allowance exemption — Up to 30% of basic salary is tax-exempt percent (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Social security contributions deductible — Employee social security contributions are deductible from taxable income (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Allowance documentation requirement — Supporting documents must be filed or the taxpayer is treated as unmarried (single allowance only) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/deductions))
• Individual return filing deadline — 31 March of the assessment year (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq))
• Employer payroll withholding remittance — Withheld tax is remitted within 15 days after the month in which salaries are paid (approx — confirm) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq))

Individuals are taxed at progressive rates from 3% to 15% under Income Tax Law No. 113 of 1982. Income derived from Iraq is taxable regardless of the individual's residence. Note: source figures for the bands vary; an Iraqi accountant should confirm the current thresholds and whether they are annual or monthly.