Middle East

Iraq

Corporate rate
15%
Top personal rate
15%
VAT / GST rate
0%
One-sentence summary Iraq's corporate tax position: 15% (35% for oil and gas). Personal income tax: 15% top rate. VAT/consumption tax: 0% - Iraq has no general VAT; specific consumption duties apply to select goods and services (imports, hotels, and similar) rather than a broad-based tax.

Corporate Tax Rate

Iraq's headline corporate income tax (CIT) rate is 15 (35% for oil and gas).

Personal Tax Rate

The headline personal income tax (PIT) rate is 15.

VAT / GST Rate

0% - Iraq does not currently impose a general VAT or broad-based sales tax, confirmed via TaxAtlas. Customs duties and excise taxes apply to imports, and specific consumption-type duties apply to select goods and services rather than a uniform rate. A separate lower-quality VAT-rate aggregator claims a flat 20% rate; given that same source has been found incorrect for other jurisdictions researched this session, it is not relied on here.

Residency

A legal person incorporated under Iraqi law is an Iraqi tax resident; companies established outside Iraq but with a place of management and control in Iraq are also treated as resident. For individuals, domicile in Iraq or presence exceeding roughly four months is generally cited as the residency trigger. Iraqi residents are taxed on worldwide income; non-Iraqi nationals are taxed on Iraq-source income regardless of residence status, and income derived abroad through funds/deposits held in Iraq is also taxable. All income derived from Iraq is subject to tax there regardless of the recipient's residence.

CFC Rules

Iraq has no CFC rules - noted by commentators as a gap that leaves Iraqi corporate groups' offshore subsidiary profits outside the current tax net, with adoption of a CFC regime discussed as a possible future reform but not currently enacted.

Thin Capitalization

Iraq has no thin capitalization rules and no EBITDA-based interest limitation - interest deductibility is currently unrestricted by a debt-to-equity or earnings-based cap.

Treaty Network

Iraq's treaty network is limited - constrained by decades of conflict and sanctions - at roughly 15 agreements, though it has been growing recently with treaties including Cyprus, Hungary, the Netherlands, Pakistan, and the UAE. Hungary is Iraq's only EU treaty partner. Iraq is also party to an Arab Economic Union Council treaty, though this does not appear to be widely applied in practice.

Source: PwC Worldwide Tax Summaries - Iraq (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 24 June 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.