Iraq

Social security contributions

Social security tax is imposed on salaries and benefits of local and expatriate employees, after the deduction of allowances. The employer's contribution is 12% and the employee's contribution is 5% from net salaries. The contribution of employers that are categorised as prime will be 25%.

Consumption taxes

Sales tax

A new sales tax law was issued in early 2015 whereby a sales tax of 300% will be imposed on alcohol and tobacco (cigarettes), 15% on travel tickets, 15% on cars, and 20% on mobile recharge cards and internet. This is in addition to services rendered by deluxe and first class restaurants and hotels, which were already subject to a 10% sales tax.

Net wealth/worth taxes

There are no net wealth/worth taxes in Iraq.

Inheritance and gift taxes

Inheritance is taxed as follows:

• The first IQD 20 million: Exempted.
• IQD 20 million to IQD 30 million: 3%.
• IQD 30 million to IQD 60 million: 4%.
• IQD 60 million to IQD 90 million: 5%.
• Over IQD 90 million: 6%.

Taxation of gifts is unclear, but it may be subject to the normal PIT rate.

Property taxes

A basic tax of 10% is assessed on the annual revenue for all real estate and is collected from the real estate owner or the long-term lessee (five years). In cases where the owner or long-term lessee cannot be located, the person occupying the real estate will be assessed. Note that the annual revenue for each real estate is discounted by 10% for expenses and maintenance before assessing the tax on that real estate.

Luxury and excise taxes

There is no tax provision in the Iraqi Tax Law addressing excise taxes.