Corporate Income Tax in Iraq: The Legal Framework

Corporate income tax in Iraq

Short answer: Company income in Iraq, including that of a foreign company registered in Iraq or with a permanent establishment there, is taxed under Income Tax Law No. 113 of 1982, as amended. Tax on a company's income is due before anything is paid to shareholders (Art. 14). The General Commission for Taxes at the Ministry of Finance administers the tax. We confirm the rate and deadlines in force against the Commission's text when we work on your file.

What governs corporate tax

Law: Income Tax Law No. 113 of 1982, as amended, published by the General Commission for Taxes.
Company-level tax: tax on company income is due before anything is paid to shareholders (Chapter 10, Art. 14).
Foreign companies: the Law covers the Iraqi income of foreign companies registered in Iraq or having a permanent establishment there (Art. 13, as amended).

How we help companies

We review the company or branch's tax registration and annual filing position. We link it to the company-registration file and to social-security duties. See: Company registration · Social security for companies · Work permits.

FAQ

Which law governs corporate tax in Iraq? Income Tax Law No. 113 of 1982, as amended. Are foreign branches taxed? Yes, on their Iraqi income where registered or with a permanent establishment (Art. 13, as amended). When is company tax due? Before anything from the company's income is paid to shareholders (Art. 14).

About the author

Othman Al-Juboori: Iraqi lawyer, expert in Iraqi labour law, Member of the Iraqi Bar Association, and founder and Managing Director of Al-Taswia Legal Services Company. The firm has a team of 15 lawyers working from its Baghdad office (Al-Yarmouk). Author page Sources last checked: 16 October 2026.

General information, not legal advice.