Middle East
Iraq tax rates 2026
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 Some figures indicative
The taxes
| Personal income (top) | 15%A progressive rate of 3%–15% applies to Iraqi-source income. |
|---|---|
| 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
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.