Individual - Foreign tax relief and tax treaties

Last reviewed - 04 December 2023

Foreign tax relief

Income tax paid to a foreign country on income earned in that country may be credited against tax paid to Iraq. The amount of the credit may not exceed the amount of tax assessed in Iraq on the income earned in the foreign country at the rate in effect in Iraq. If taxes paid to a foreign country exceed the amount of this limitation, then the excess taxes may be carried to credit in five consecutive years subject to the limitation in those years.