Iraq Corporate, Tax & Oilfield Commercial Advisory

Iraq Overview

Iraq is a strategically located country in Western Asia, sharing borders with Jordan to the west, Syria to the northwest, Turkey to the north, Iran to the east, and Kuwait and Saudi Arabia to the south. Administratively, the nation is divided into 18 governorates, with Baghdad as its political and economic capital. Arabic and Kurdish are the official languages, and the national currency is the Iraqi Dinar (IQD).

Historically, Iraq formed part of the Ottoman Empire until the early 20th century. Following World War I, it came under British occupation and was designated a League of Nations mandate in 1920. The Kingdom of Iraq gained full independence in 1932, and in 1958, the monarchy was abolished and replaced by a republic. A major turning point occurred in 1990 when Iraq invaded Kuwait, leading to military intervention by a United States–led United Nations coalition and the Gulf War of 1991.

In 2005, Iraq adopted a new constitution through a national referendum, paving the way for democratic governance. Under this constitution, a 275-member Council of Representatives (CoR) was elected in December of the same year. Iraq’s long-term economic stability and growth remain closely tied to policy reforms and the development of its vast natural resources—particularly its world-class oil reserves.

Today, Iraq is increasingly viewed as an important destination for foreign investment. The economy is heavily dependent on the oil sector, which generates more than 90% of government revenue and around 80% of foreign exchange earnings. New oil contracts signed with major international companies have created significant opportunities for revenue expansion. However, realizing this potential requires substantial upgrades to Iraq's refining capacity, transportation systems, and export infrastructure.

ASHUR has been very active in Iraq since 2020 and has an office in Baghdad. ASHUR Iraq provides advisory, audit, and tax services for key government entities, as well as banks, financial institutions, oil and gas companies, industrial companies, and agricultural companies within the Iraqi private sector.

Corporate income tax (CIT) rates

CIT rate (%) 15 (35 for certain companies in the oil and gas sector)

Corporate income tax (CIT) due dates

CIT return due date : 31 May

CIT final payment due date : Within 3 days from the assessment date.

CIT estimated payment due dates : NA

Personal income tax (PIT) rates

PIT rate (%) : 15

Personal income tax (PIT) due dates

PIT return due date : 31 March

PIT final payment due date : NA

PIT estimated payment due dates : PAYE 15 days after the end of the month in which the salaries were paid.

Value-added tax (VAT) rates

Standard VAT rate (%)

Sales tax: Varies by good/service

Withholding tax (WHT) rates WHT rates (%) (Dividends/Interest/Royalties)

Resident: NA / 1.8 to 10 / 1.8 to 10 depending on the industry;

Non-resident: NA / 15 / 15

Capital gains tax (CGT) rates

Headline corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate.

Headline individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates

net wealth/worth tax rate (%) : NA

Inheritance and gift tax rates

inheritance tax rate (%): 6 (over IQD 90 million)

gift tax rate (%) : Not clear, but it may be subject to the normal PIT rate.

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, ASHUR does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.