Iraq Tax

Section 1 -- Quick reference

Quick reference

Field	Value
Country	Iraq
VAT/GST status	NOT IMPLEMENTED
Specific sales taxes	Alcohol 300%, tobacco 300%, mobile/internet 20%, travel 15%, cars 15%, hotels 10%, telecom 5%
Corporate income tax	15% standard
Personal income tax	Progressive 3%-15%
Authority	General Commission for Taxes (GCT), Ministry of Finance
Filing portal	No centralized electronic portal (paper filing)
Currency	IQD (Iraqi Dinar)
Primary legislation	Income Tax Law No. 113 of 1982 (as amended)
Contributor	Open Accounting Skills Registry
Validated by	Pending
Last research update	April 2026

Section 2 -- Required inputs and refusal catalogue

Minimum viable -- bank statement or transaction list. Acceptable from Rasheed Bank, Rafidain Bank, Trade Bank of Iraq, or any Iraqi bank.

Refusal catalogue:

• R-IQ-1 -- Oil sector — Oil sector taxation is T3. Escalate. (R-IQ-1 -- Oil sector.)
• R-IQ-2 -- Kurdistan Region — KRI has separate tax administration. Escalate for dual-filing obligations. (R-IQ-2 -- Kurdistan Region.)

3.1 Iraqi banks

Iraqi banks pattern library

Pattern	Treatment	Notes
RASHEED BANK	EXCLUDE	Financial transaction
RAFIDAIN BANK	EXCLUDE	Same
TRADE BANK OF IRAQ, TBI	EXCLUDE	Same
INTEREST, LOAN	EXCLUDE	Out of scope

3.2 Government

Government pattern library

Pattern	Treatment	Notes
GCT, GENERAL COMMISSION FOR TAXES	EXCLUDE	Tax payment
CUSTOMS	EXCLUDE	Customs duty
SOCIAL SECURITY	EXCLUDE	Social insurance

Example 1 -- Client asks about Iraq VAT

Input: "What is the VAT rate in Iraq?"

Resolution: Iraq does not have VAT. No broad-based consumption tax exists. Specific sales taxes apply to enumerated products only.

Example 2 -- Alcohol import

Importer brings alcohol into Iraq. 300% sales tax at customs plus customs duties. No input credit mechanism. Tax is a direct cost.

5.1 No VAT system

• No VAT system — Iraq has no VAT registration, filing, collection, or invoicing requirements. (Section 5.1 No VAT system)

5.2 Specific sales taxes

Specific sales taxes by product

Product	Rate
Alcohol	300%
Tobacco	300%
Mobile/internet	20%
Travel tickets	15%
Cars	15%
Hotels/restaurants (deluxe)	10%
Telecom services	5%

• Nature of specific sales taxes — These are excise-type levies on enumerated goods only. No input credit. No staged collection. No registration system. (Section 5.2 Specific sales taxes)

5.3 Corporate income tax

• Corporate income tax - standard — 15% percent (flat on net profits from Iraqi-source income) (Section 5.3 Corporate income tax)
• 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)
• Agricultural income — Agricultural income: exempt. (Section 5.3 Corporate income tax)

Section 6 -- Return form structure

• Return form structure — No VAT return exists. CIT return filed annually by 31 May, paper-based at GCT offices. Financial statements in Arabic must accompany. (Section 6 -- Return form structure)

Section 7 -- No reverse charge

• No reverse charge — No VAT system means no reverse charge mechanism exists. (Section 7 -- No reverse charge)

Section 8 -- No input deductibility

• No input deductibility — No input credit system for sales taxes. Tax on alcohol/tobacco is embedded cost. (Section 8 -- No input deductibility)

Section 9 -- Filing, deadlines, and penalties

Filing, deadlines, and penalties

Obligation	Deadline
CIT return	31 May following year-end
Books/records	Arabic language required

• Social security - employer — 12% percent (Section 9 -- Filing, deadlines, and penalties)
• Social security - employee — 5% percent (Section 9 -- Filing, deadlines, and penalties)
• Social security - total — 17% percent (employer 12% + employee 5%) (Section 9 -- Filing, deadlines, and penalties)

Edge cases

EC1 -- VAT question. Iraq has no VAT.

EC2 -- Alcohol import. 300% sales tax at customs. No credit.

EC3 -- E-commerce/digital. No VAT/sales tax on digital services. CIT if PE exists (escalate PE).

EC4 -- Kurdistan Region. Dual filing may be needed. Escalate.

EC5 -- Agricultural income. Exempt from income tax.

Test suite

Test 1 -- VAT question. Expected: "Iraq does not have VAT."

Test 2 -- CIT. IQD 100M profit. Expected: CIT IQD 15M (15%). File by 31 May.

Test 3 -- Alcohol. IQD 1M cost. Expected: 300% sales tax embedded. No credit.

Test 4 -- Agriculture. IQD 50M farming income. Expected: exempt.

Test 5 -- Foreign contractor. IQD 500M government contract. Expected: CIT 15%. WHT at source.

Escalation protocol

REVIEWER FLAG / ESCALATION REQUIRED
[Standard format]

Prohibitions

• NEVER state Iraq has VAT -- it does not
• NEVER apply VAT calculations to Iraq
• NEVER apply input credits to specific sales taxes
• NEVER assume federal rules apply in Kurdistan Region
• NEVER file without Arabic documentation
• NEVER compute numbers -- engine handles arithmetic

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.