Middle East
Iraq: tax at a glance
Iraq taxes only Iraqi-source income, under a territorial system. Both personal and corporate income are capped at a low 15%, and there is no general VAT.
Territorial
Last verified July 2026Some figures indicative
The taxes
- Personal income (top)
- 15%
- Corporate income
- 15%
- Capital gains
- Taxed as income, though gains on shares and bonds are largely exempt.
- VAT / Sales Tax
- None, though a sales tax applies to select goods and services.
- Dividends (WHT)
- None
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- 5%
- Social security (employer)
- 12% (25% for the oil and gas sector)
- Wealth tax
- None
- Inheritance / estate
- None (no formal estate tax)
- Property tax
- Property and rental income tax, plus municipal levies.
- Other
- Oil and gas contractors are taxed at 35%, and a sales tax of about 10% applies to deluxe hotels and restaurants.
How the system works
- Tax system
- Territorial
- Foreign income
- Largely outside scope (territorial)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Iraq?
The top marginal personal income tax rate in Iraq is 15%. A progressive rate of 3%–15% applies to Iraqi-source income.
What is the corporate tax rate in Iraq?
The headline corporate income tax rate is 15%.
Does Iraq tax capital gains?
Capital gains for individuals: Taxed as income, though gains on shares and bonds are largely exempt..