Iraq Tax Overview

Iraq tax system at a glance

Iraq taxes income on a territorial basis under the Income Tax Law, administered by the General Commission for Taxes. The economy is oil-dependent and the Kurdistan Region (KRI) runs a separate tax administration with its own rates and procedures.

• Tax (assessment) year — Calendar year (1 January to 31 December) (Income Tax Law No. 113 of 1982)
• National currency — Iraqi dinar (IQD) (Central Bank of Iraq)
• Federal tax authority — General Commission for Taxes (GCT) (Income Tax Law No. 113 of 1982)
• Kurdistan Region tax administration — The Kurdistan Region of Iraq (KRI) operates a separate tax authority with distinct rates and procedures (Kurdistan Region Income Tax administration)
• Basis of taxation — Territorial — all income derived from Iraq is taxable regardless of the recipient's residence (Income Tax Law No. 113 of 1982)
• Top personal income tax rate — 15% percent (Income Tax Law No. 113 of 1982)
• Standard corporate income tax rate — 15% percent (Income Tax Law No. 113 of 1982)
• Corporate tax rate — oil & gas sector contractors — 35% percent (applies to income from contracts with foreign oil companies, branches and subcontractors in the oil and gas production sector) (Income Tax Law No. 113 of 1982)
• Value added tax (VAT) — Iraq has no broad-based VAT; a selective sales tax applies to specified goods and services (Sales Tax regime (introduced 2015))
• Corporate return filing deadline — 31 May of the assessment year (Income Tax Law No. 113 of 1982)
• Individual return filing deadline — 31 March of the assessment year (Income Tax Law No. 113 of 1982)