Iraq

{"ftc_utility":"low","fbar_trigger_notes":"US expats working in Iraq typically receive compensation through foreign employer bank accounts or third-country accounts. Any Iraqi dinar or foreign bank account with aggregate balances exceeding $10,000 at any point in the calendar year triggers FBAR filing on FinCEN Form 114. Banking infrastructure is limited and many expats use accounts in Kuwait, Jordan, or UAE instead.","ftc_utility_reason":"Iraq's top income tax rate is only 15%, well below the US top marginal rate. If FEIE is fully claimed, no remaining US tax may be owed on excluded income, making FTC less relevant. Where income exceeds FEIE limits, the FTC can shelter some US tax using Iraqi taxes paid, but the low Iraqi rates mean incomplete sheltering of the US liability.","presence_day_count_notes":"Iraq is a Level 4 Do Not Travel destination per the US State Department. Most US expats present are contractors, military support personnel, or NGO workers operating under specific security arrangements. Visa categories are not standardized for civilian long-term residency in the way most countries use. The 330-day physical presence test is technically achievable but highly unusual given security conditions. Many contractors rotate in and out on project schedules that may still allow the 330-day count to be met within a 12-month period.","typical_qualifying_method":"physical_presence","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":35000,"local_tax_rate_on_earned_income":0.15,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Pension income from foreign sources is technically subject to Iraqi income tax for residents at progressive rates up to 15%. Enforcement of foreign-source pension income is weak. Iraqi government pensions paid to Iraqi civil servants are taxed under a separate schedule.","tax_rate":0.15,"locally_taxed":true},"social_security":{"notes":"No US-Iraq tax treaty exists. US Social Security benefits are not specifically addressed under Iraqi law. In practice, Iraqi authorities do not assess Social Security income received by foreign residents.","locally_taxed":false,"treaty_protection":false},"roth_distributions":{"notes":"Roth distributions are generally not classified as income under Iraqi tax concepts. No specific provision addresses Roth accounts. In practice, these are not assessed by Iraqi tax authorities.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"No US-Iraq income tax treaty is in force. US 401k and IRA distributions received by a resident of Iraq would in principle be taxable as ordinary income under Iraqi law at progressive rates up to 15%. Practical enforcement against foreign-source retirement income is very limited, but no legal exemption exists.","tax_rate":0.15,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Iraq has no separate capital gains tax. Gains are treated as ordinary income and taxed at progressive individual rates up to 15%. In practice, enforcement is limited and most capital transactions involving property or securities are rarely assessed.","details":{"tax_type":"Capital Gains Tax","country_name":"Iraq","country_iso_code":"IRQ","source_references":["PwC Worldwide Tax Summaries - Iraq","Income Tax Law No. 113 of 1982 (Iraq)"],"last_verified_date":"2026-06-03","general_description":"Iraq does not levy a standalone capital gains tax. Gains realized by individuals are folded into general income and subject to the standard progressive income tax schedule under Income Tax Law No. 113 of 1982 and its amendments. The top marginal rate is 15%.","corporate_capital_gains":{"rate":0.15,"tax_treatment":"Taxed as ordinary corporate income at the standard flat rate of 15%. Oil and gas sector companies are subject to a separate regime under the Development Law with higher effective rates."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"No separate CGT regime. Gains included in taxable income and subject to progressive rates from 3% to 15%. Practical enforcement is inconsistent."}}}

{"notes":"Iraq does not impose a specific dividend withholding tax on distributions to residents or non-residents under the general tax law. Dividends paid by Iraqi companies to foreign shareholders may be subject to withholding under specific contracts or sector regulations, but no statutory dividend WHT rate is codified for most situations. The Kurdistan Region may apply different treatment.","rates":[{"rate":0,"type":"withholding","notes":"No statutory dividend withholding tax at the national level under Income Tax Law No. 113 of 1982. Contractual or sector-specific arrangements may differ, particularly in the oil sector."}]}