Iraq Tax Rates
Iraq operates a progressive income tax system with rates from 3% to 15%, administered by the General Commission for Taxes. The corporate tax rate is 15%, and there is no VAT. Iraq's economy is heavily dependent on oil revenues, which account for the vast majority of government income. The Kurdistan Region of Iraq has its own tax administration.
Top Income Tax Rate
15%
Corporate Tax Rate
15%
VAT / Sales Tax
0%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Iraq's personal income tax applies progressive rates from 3% to 15% on monthly income. The maximum rate of 15% is one of the lowest in the region. A personal exemption applies. Employment income and other personal income are aggregated for tax purposes.
| Income Range | Tax Rate |
|---|---|
| IQD 0 – IQD 250K | 3% |
| IQD 250K – IQD 500K | 5% |
| IQD 500K – IQD 1.0M | 10% |
| IQD 1.0M+ | 15% |
Corporate Tax
Iraq's corporate income tax rate is 15%. Oil companies operating under service contracts pay at the standard rate but are also subject to a 35% tax under certain oil law provisions. Companies in the Kurdistan Region may face different effective rates.
Standard Rate
15%
Capital Gains Tax
Capital gains are included in taxable income and subject to the standard 15% tax rate.
Rate
15%
VAT / Sales Tax
Iraq does not currently impose a VAT or general sales tax. Customs duties and excise taxes apply to imports. The introduction of a sales tax has been discussed but not implemented.
Standard Rate
0%
Cryptocurrency Tax
Iraq has not introduced cryptocurrency regulation or tax rules. The Central Bank of Iraq has warned against crypto use. Limited internet infrastructure and financial system development restrict crypto adoption.
Tax Treaties
Iraq has a limited tax treaty network of approximately 15 agreements, constrained by decades of conflict and international sanctions.
Treaty Network
15
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Iraq
See how much you could save by moving here from your current country.
+$16K
Tax in United States
$24K
24.4% effective
Tax in Iraq
$8K
8% effective
You Save
67.2%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
