Iraq Tax Overview

Iraq tax system at a glance

• Territorial income tax system administered by GCT; KRI separate administration — 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 (https://taxsummaries.pwc.com/iraq))
• National currency — Iraqi dinar (IQD) (Central Bank of Iraq (https://taxsummaries.pwc.com/iraq))
• Federal tax authority — General Commission for Taxes (GCT) (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq))
• 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 (https://taxsummaries.pwc.com/iraq/corporate/withholding-taxes))
• Basis of taxation — Territorial — all income derived from Iraq is taxable regardless of the recipient's residence (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• Top personal income tax rate — 15% percent (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income))
• 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)
• 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) (https://taxsummaries.pwc.com/iraq/individual/other-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))
• Individual return filing deadline — 31 March of the assessment year (Income Tax Law No. 113 of 1982 (https://taxsummaries.pwc.com/iraq))