Tax in Iraq

Who is the tax authority and where do filings live?

Iraq's General Commission for Taxes (GCT), under the Ministry of Finance, administers Iraq's federal tax system [SC1]. The Kurdistan Regional Government (KRG) operates a separate parallel tax administration for Kurdistan Region. Substantive law: Income Tax Law 113/1982 (as amended), and successive amendments. Iraq is a Greater Arab Free Trade Area (GAFTA) member.

What is the tax year and when are returns due?

Individual tax year is the calendar year. Personal returns due 31 May [SC1]. Wage tax withheld monthly. Corporate annual returns due 31 May. Sales tax framework filings vary by category.

Who is an Iraqi tax resident?

Under Income Tax Law, an individual is tax resident if (a) maintaining residence in Iraq, OR (b) physically present 183+ days in tax year [SC2]. Residents taxed on Iraqi-source income (territorial-source taxation framework predominantly).

What are the personal income tax rates?

Four brackets: 3 percent up to IQD 250,000; 5 percent on IQD 250,001-500,000; 10 percent on IQD 500,001-1,000,000; 15 percent above [SC1]. Personal allowance applies. Investment income face specific WHT.

How does Iraq's corporate tax work?

CIT 15 percent flat for resident companies [SC2]. 35 percent for oil/gas/banks/telecoms sectors. KRG operates separate framework with own CIT rate. Withholding on dividends to non-residents 15 percent (treaty rates apply). Pillar Two not transposed. Tax losses 5 years.

What about indirect tax?

No general VAT — Iraq operates sales tax framework on specified goods and services [SC3]. The post-2014 GAFTA-aligned VAT framework has been progressively considered but not implemented.

How are cryptoassets taxed?

Central Bank of Iraq advisory: cryptoassets restricted [SC2]. Where declared, gains under existing income-tax categories.

What is the treaty network and what are the audit triggers?

Iraq has approximately 12 active double tax treaties [SC4]. MLI not signed. Standard SOL 5 years; extended for fraud.

What are the common penalties and pitfalls for foreigners?

Penalty framework: late filings, failure to file, incorrect declarations [SC5]. Common pitfalls: (1) federal vs KRG dual-jurisdiction tax framework; (2) sector-specific 35 percent oil/gas/banks/telecoms; (3) post-2003 reconstruction-context tax administration progressive modernisation; (4) Pillar Two not transposed; (5) limited treaty network (12 DTCs); (6) MLI not signed; (7) no general VAT (sales tax framework only); (8) GAFTA member; (9) post-ISIS-conflict territorial-administration complexity; (10) Income Tax Law 113/1982 framework with successive amendments.