Iraq Tax Filing Guide

Annual Tax Return — April 30 Deadline

• Filing deadline — April 30: The annual tax return for the individuals is due by April 30 of the following year. The return covers the income earned in the prior calendar year (1 January to 31 December).
• Companies — fiscal year: The companies follow the fiscal year. If the fiscal year ends on 31 December, the return is due by April 30. If the fiscal year ends on a different date (e.g., 31 March), the return is due within 4 months of the fiscal year-end.
• Extension: The GCT may grant a filing extension upon a written request, but the extension is not automatic. The late filing may result in the penalties.
• Required forms: The individual income tax return (Form IIT-1), the corporate income tax return (Form CIT-1), and the supporting schedules (audited financial statements for the companies, salary certificates, bank statements).

For example: an individual taxpayer must file the 2026 tax return by 30 April 2027, reporting all the Iraqi-source income earned in 2026.

Provisional Tax Payments — Quarterly Advance Payments

• Quarterly instalments: The taxpayers are required to make the provisional (advance) tax payments on a quarterly basis during the tax year. The instalments are based on the estimated tax liability for the current year or the prior year's liability.
• Instalment schedule: The quarterly payments are due on: 31 March, 30 June, 30 September, and 31 December of the tax year. Each instalment is 25% of the estimated annual tax liability.
• Settlement: The final tax liability is calculated in the annual return, and the difference between the total provisional payments and the actual liability is settled (pay the balance or claim the refund).

For example: a company with an estimated annual tax of IQD 12,000,000 pays IQD 3,000,000 per quarter by the quarterly due dates.

Withholding Returns — Monthly

• Monthly filing: The employers must file the monthly withholding tax returns and remit the withheld tax to the GCT. The return is due within 15 days of the end of each month.
• Withholding obligations: The employers must withhold the personal income tax (IIT) from the employee salaries at the progressive rates (3–15%). The withholding is calculated on the monthly salary basis.
• Other withholding: The companies must also withhold the tax on the payments to the non-residents (dividends at 10%, interest at 15%, royalties at 15%) and remit the withholding to the GCT.

For example: an employer in Baghdad files the monthly withholding return (Form WHT-1) by the 15th of the following month, remitting the employee income tax withheld for the previous month.

Filing at GCT Offices — Limited E-Filing

• In-person filing: Most of the tax returns are filed in person at the GCT offices. The taxpayer (or the tax agent) must visit the local GCT office to submit the paper returns and the supporting documents.
• Limited e-filing: The GCT has a limited e-filing system, but it is not widely used. The e-filing is available only for the selected taxpayer categories and for the selected services (e.g., the withholding tax filing for the large taxpayers).
• Tax agent requirement: Many taxpayers engage a licensed tax agent (محاسب قانوني) to prepare and file the returns. The tax agent must be registered with the GCT.

For example: a taxpayer in Baghdad must visit the Rusafa GCT office to file the annual return, unless enrolled in the e-filing pilot programme.

Tax Card — Registration Certificate

• Tax Card requirement: Every taxpayer (individual or company) must obtain the Tax Card (البطاقة الضريبية) from the GCT. The Tax Card is the primary tax identification document and is required for all the tax filings and the payments.
• Application: The Tax Card application is submitted to the GCT at the time of the initial registration. The card shows the taxpayer's name, the Tax Identification Number (TIN), and the tax office.
• Renewal: The Tax Card must be renewed periodically. The company must update the Tax Card if there is a change in the address, the legal form, or the business activity.

For example: a company must display the Tax Card at the registered office and include the TIN on all the invoices and the tax returns.

Penalties — Late Payment 6% Per Annum

• Late payment penalty — 6% per annum: The late payment of the tax is subject to a penalty of 6% per annum on the unpaid amount. The penalty accrues from the original due date until the date of the payment.
• Late filing penalty: The late filing of the tax return may result in a fixed penalty per day or a percentage of the tax due, depending on the GCT's assessment.
• Interest: In addition to the penalty, the GCT may charge the interest on the unpaid tax. The interest rate is determined by the Ministry of Finance.

For example: a taxpayer who pays IQD 1,000,000 in tax 6 months late pays an additional IQD 30,000 in the penalty (IQD 1,000,000 × 6% × 6/12).

FAQs

Can I file the tax return online in Iraq?

The e-filing in Iraq is limited. The GCT has introduced the online filing for the large taxpayers and for the specific return types, but the majority of the taxpayers still file the paper returns in person. The e-filing is expected to expand under the GCT digital transformation programme.

What are the record-keeping requirements?

The taxpayers must retain the accounting records, the invoices, and the supporting documents for at least 5 years from the end of the tax year. The companies must retain the audited financial statements. The GCT may request the documents during the tax audit.

How is the tax refund processed?

The tax refund may be claimed in the annual return if the total provisional payments exceed the actual tax liability. The refund is processed by the GCT and may take several months. The GCT may audit the return before processing the refund.