DoubleTaxationTaxes on salary: Iraq preliminary data
How much income tax and social contributions are paid on a salary in Iraq, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | IQD 92,127,060 ≈ €60,000 |
|---|---|
| Income tax | IQD 13,364,059 ≈ €8,704 |
| Take-home pay | IQD 78,763,001 ≈ €51,296 |
| Employer's labour cost | IQD 92,127,060 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 IQD 46,063,530 | €60,000 IQD 92,127,060 | €120,000 IQD 184,254,120 |
|---|---|---|---|
| Sole proprietor | IQD 5,763,577 13.9 % | IQD 11,982,153 14.5 % | IQD 24,419,306 14.7 % |
| Company | IQD 6,218,577 15.0 % | IQD 12,437,153 15.0 % | IQD 24,874,306 15.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Iraq yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1535.451 IQD (UN Treasury — UN operational rates of exchange, 31/12/2025) ↗
Sources
- UN ESCWA Arab Laws Portal — Iraq Income Tax Law No. 113 of 1982 (English, with CPA Orders 49 and 84 of 2004) (law text from a third-party publisher; no official copy found)
- UN Treasury — UN operational rates of exchange (rate history per currency; January 2026 rate effective 31 Dec 2025)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.