Middle East · Tax guide
Iraq
Iraq taxes company profits at 15% and has no VAT, though a sales tax applies to some goods and services. The Kurdistan Region runs its own tax administration, and federal taxes are administered by the General Commission for Taxes.
At a glance
- Corporate income tax
- 15%
- VAT
- None
- Withholding on payments abroad
- 3.3%
Higher for oil and gas
Sales tax on some items
Contract payments
Corporate income tax
Companies pay 15%, with a higher rate for oil and gas activity. The annual return is due by 31 May, and foreign contractors are often taxed on deemed profits. A tax clearance letter is needed before final contract payments are released.
Sales tax
Iraq has no VAT. A sales tax applies to some goods and services, such as hotels, restaurants, mobile top-ups and some imports.
Payments abroad
Payments under contracts with non-residents carry 3.3% withholding. The Kurdistan Region has its own rules, so check which administration applies.
Key dates
- 31 MayAnnual income tax return
Figures and sources
2 figures- Corporate income tax rate15%Under professional review
- Withholding on payments to non-residents3.3%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Iraq based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Iraq (an Iraqi tax adviser) before making compliance decisions.