Iraq

Iraqi tax law does not contain any provisions for filing consolidated returns or for relieving losses within a group of companies.

Transfer pricing

The precise meaning of transfer pricing under the effective Iraqi tax system is rather unclear from a tax and legal perspective.

We note that while having no specific transfer pricing legislation, Iraq does have a ‘third party’ arm’s-length provision contained within its tax legislation; whereby, if a non-resident taxpayer is engaged in business with a resident and it appears to the tax authority that due to the connection existing between the resident and the non-resident, and the substantial control of one over the other, that the business relationship is arranged in a manner that leaves no profits to the resident, or the profits left are much less than what is normally earned, the tax shall be assessed on the actual profits of the non-resident and charged to the resident as if the resident is the business agent for the non-resident.

Thin capitalisation

Iraqi tax law does not contain a provision that covers thin capitalisation.

Controlled foreign companies (CFCs)

Iraqi tax law does not contain any provisions for CFCs.