Iraqi Tax Services

Although taxes in Iraq have largely been uncollected since the fall of the previous regime, there are certain tax liabilities that both foreign and domestic companies must pay to the Iraqi Tax Commission which has begun enforcing these taxes. Contractors executing contracts as defined by CPA Order 17 or performing contracts under agreement between Iraqi and US governments are exempted from taxes on the profits they earn from the contracts. Non-Iraqi employees working for those contractors under those specific contracts are also exempted from Iraqi taxes.

However, when a contractor hires local Iraqi staff, it must withhold the Wage Withholding Tax from their employees' pay and remit it to the Iraqi Tax Commission. If the contractor neglects to pay this tax it may be liable for the amount owed and the Iraqi government may pursue actions in order to collect the tax.

We have been advised by both US and Iraqi government agencies to recommend to our clients that the Wage Withholding Tax be collected and remitted to the Tax Commission. Our staff can calculate the amount of the tax, register your organization with the Tax Commission, and remit the tax (which must be paid in Iraqi Dinars) in a timely manner.