All income derived from Iraq is subject to tax in Iraq, regardless of the residence of the recipient.
The effective corporate income tax (CIT) system presented in Iraq for juristic persons (except partnerships) is based on a statutory CIT rate of 15% at all income levels, with no progressive tax rate scale.
Moreover, the General Commission for Taxes (GCT) adopts the deemed approach by applying a certain rate on the total reported revenue. Note that the GCT applies the highest of the deemed tax on the reported revenue or the 15% (35% for oil and gas industry, see below) of the reported profit/taxable profit.
Foreign oil company income tax
The income realised in Iraq from contracts concluded with foreign oil companies, their branches or offices, and subcontractors working in Iraq in the oil and gas production sector and related industries is taxed at a rate of 35%.
Local income taxes
To the best of our knowledge, there are no local, state, or provincial taxes on income in Iraq.