Allo' Expat Iraq - Connecting Expats in Iraq
Main Homepage
Allo' Expat Iraq Logo


 

   Information Center Iraq
Iraq General Information
Iraq Expatriates Handbook
Iraq and Foreign Government
Iraq General Listings
Iraq Useful Tips
Iraq Education & Medical
Iraq Travel & Tourism Info
Iraq Lifestyle & Leisure
Iraq Business Matters
 
Iraq Business
Taxation in Iraq
  Sponsored Links


Check our Rates

Taxation in Iraq
 
 
 
Tax shall be imposed on the taxpayer in respect of each year of assessment at the following rates – resident individual after granting the allowance(s) provided for in Article 12, and non-resident individual:

• at the rate of 3% on amounts up to ID 250,000;

• at the rate of 5% on amounts over ID 250,000 and up to ID 500,000;

• at the rate of 10% on amounts over ID 500,000 and up to ID 1,000,000;

• at the rate of 15% on amounts over ID 1,000,000.

The tax rate for income earned by corporations from April 1, 2004 will be a flat 15%. As provided for in the current Income Tax Law Number 113 of 1982, the rate will be levied on the income of private sector companies (limited liability companies, private joint-stock companies and mixed joint-stock companies), including income of foreign companies operating in Iraq. This lower rate, compared to the prior rate of up to 40%, will encourage reinvestment of company profits. This in turn will encourage increased capital investment and job creation in Iraq by private sector firms. The lower flat rate also will lead to increased revenue collection as companies respond to Iraq’s transition to a free market-based economy.

Exemptions from taxation are given to the following:

• the CPA, Coalition Forces, forces of countries acting in coordination with Coalition Forces, and departments and agencies of Coalition Forces’ governments, are not liable for any tax or similar charge within the territory of Iraq;

• governments and international organisations are not liable for any tax or similar charge within the territory of Iraq;

• foreign (non-Iraqi) employees and foreign (non-Iraqi) contractors and subcontractors of the CPA, Coalition Forces, forces of countries acting in coordination with Coalition Forces, and departments and agencies of Coalition Forces’ governments, that are providing technical, financial, logistical, administrative or other assistance to Iraq, and foreign employees of such contractors and sub-contractors, shall not be liable to pay any tax on income or similar charge within the territory of Iraq on income from foreign sources or on income from or paid on behalf of the CPA, Coalition Forces, forces of countries acting in coordination with Coalition Forces, or departments or agencies of the governments of Coalition Forces;

• foreign (non-Iraqi) employees and foreign (non-Iraqi) contractors and subcontractors of foreign (non-Iraqi) governments, international organisations, and non-governmental organisations registered pursuant to CPA Order Number 45, that are providingtechnical, financial, logistical, administrative or other assistance to Iraq, and foreign employees of such contractors and subcontractors, shall not be liable to pay any tax on income or similar charge within the territory of Iraq on income from foreign sources or on income from or paid on behalf of such governments, international organisations, and non-governmental organisations.

In addition to the above, the following persons shall be exempt from payment of income tax:

• members of foreign diplomatic missions to Iraq, as well as members of their households, if they are not citizens of Iraq;

• members of consular offices, as well as members of their households, if they are not citizens of Iraq;

• honorary consuls of foreign countries, but only for income received from the country that has appointed them honorary consul.

 

 
 


 



 


copyrights © AlloExpat.com
2017 | Policy