Iraq capital gains tax calculator

Not one universal schedule. A property transfer pays a registration-side tax on the value under Decision 120 of 2002: 3% of the first IQD 30 million above an exempt IQD 20 million slice, then 4%, 5% and 6% as the value climbs past IQD 50m, 80m and 110m, always on the higher of the official assessed value or the price. On the income side, only the profits of the profession of trading in shares and bonds are taxed, on the ordinary 3/5/10/15% individual scale. A one-off passive share disposal is not classified by the law.

That combination circulates in secondary summaries but appears in no official source. The official consolidated Income Tax Law No. 113 of 1982 contains no stock-exchange listing exemption and no 15% unlisted-share rate, and PwC's worldwide tax summaries state that Iraq's capital gains are subject to the normal income tax rate, with non-trading share gains possibly exempt in practice. This calculator charges share sales only as trading-profession income; the 15% rate that exists in the law is the company rate, not a share-gains rate.

Take the higher of the joint inspection committee's assessed value and the declared price, exempt the first IQD 20 million, then charge 3% of the next IQD 30 million, 4% of the next IQD 30 million, 5% of the next IQD 30 million and 6% of everything above IQD 110 million. A property assessed at IQD 110 million pays IQD 3,600,000, the worked example in the Tax Authority's own guide. The seller clears the tax with the tax branch before the Real Estate Registration Directorate registers the buyer.

Trading losses do, on the income side: article 11 of the Income Tax Law lets a documented loss of one source offset the profits of other sources in the same assessment year, with the balance carried forward five consecutive years, deductible only against the same source and capped at half of that source's income each year. The property transfer tax rides the value, so a loss-making property sale still pays it.

Decision 120 of 2002 imposes a lump-sum progressive transfer tax on the owner of the property or the holder of the right of disposal at the moment ownership or the disposal right is transferred by any means (sale, exchange, settlement, assignment, gift, termination of co-ownership, liquidation of waqf or musataha). The first IQD 20,000,000 of the chargeable value is exempt; the excess is charged at 3% on the first IQD 30 million of the excess (total value up to IQD 50m), 4% on the next IQD 30m (to 80m), 5% on the next IQD 30m (to 110m) and 6% above IQD 110m total value. Source: https://tax.mof.gov.iq/%D9%82%D8%B1%D8%A7%D8%B1-120-%D9%84%D8%B3%D9%86%D8%A9-2002-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/

The taxable value of a transfer is the value assessed under the Real Estate Valuation Law No. 85 of 1978 or the declared consideration, whichever is higher. The Tax Authority's guide works the official example: a consensual sale at IQD 100m with a joint-committee assessed value of IQD 110m is taxed on IQD 110m, giving IQD 3.6m of tax (exempt first 20m, 3% of 30m, 4% of 30m, 5% of 30m). Sources: https://tax.mof.gov.iq/%D9%82%D8%B1%D8%A7%D8%B1-120-%D9%84%D8%B3%D9%86%D8%A9-2002-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/ and https://tax.mof.gov.iq/%D8%AF%D9%84%D9%8A%D9%84-%D8%A7%D8%B1%D8%A8%D8%A7%D8%AD-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/

Gifts between parents and children and between spouses are exempt from the transfer tax (Decision 120/2002 clause 5 and Instructions article 5), regardless of the number of transactions or the property's type or use. Source: https://tax.mof.gov.iq/%D9%82%D8%B1%D8%A7%D8%B1-120-%D9%84%D8%B3%D9%86%D8%A9-2002-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/

The transfer tax is charged per transfer: each disposal gets its own IQD 20m exempt slice and band ladder. For co-owned property the tax is computed on the whole property and collected in proportion to the shares transferred (clause 3; Instructions art. 4); the calculator models whole transfers only. Source: https://tax.mof.gov.iq/%D9%82%D8%B1%D8%A7%D8%B1-120-%D9%84%D8%B3%D9%86%D8%A9-2002-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/

The seller clears the transfer tax with the tax branch where the property sits before the Real Estate Registration Directorate registers the property in the buyer's name (the guide's clearance step for the seller, then payment, then registration). Source: https://tax.mof.gov.iq/%D8%AF%D9%84%D9%8A%D9%84-%D8%A7%D8%B1%D8%A8%D8%A7%D8%AD-%D9%86%D9%82%D9%84-%D9%85%D9%84%D9%83%D9%8A%D8%A9-%D8%A7%D9%84%D8%B9%D9%82%D8%A7%D8%B1/

Income side: profits from the profession of trading in shares and bonds are an income source under article 2(3) of the Income Tax Law No. 113 of 1982 and are taxed on the individual progressive scale of article 13(1-a) (3%/5%/10%/15% over IQD 250,000/500,000/1,000,000, carried in the iq-income-tax records). A one-off passive disposal is not separately classified in the official text: the calculator charges shares only when the user marks the sale as made in the course of the trading profession. On liquidation, an amount received above the original paid share value is taxable under article 16. Filing: the income report for a calendar year's income is filed before 1 June of the following year (article 27 files the report before 1 June of the assessment year, and the assessment year assesses the preceding year's income). Sources: https://tax.mof.gov.iq/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D8%A7%D9%84%D8%AF%D8%AE%D9%84-%D8%B1%D9%82%D9%85-113-%D9%84%D8%B3%D9%86%D8%A9-1982-%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87/ and https://taxsummaries.pwc.com/iraq/corporate/income-determination

Losses (income side): documented losses of one taxable source are deductible from the profits of other taxable sources in the same assessment year; the balance carries forward five consecutive years, each year's deduction capped at half of the relevant taxable income and usable only against the same source (article 11 of the Income Tax Law). Source: https://tax.mof.gov.iq/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D8%A7%D9%84%D8%AF%D8%AE%D9%84-%D8%B1%D9%82%D9%85-113-%D9%84%D8%B3%D9%86%D8%A9-1982-%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87/

NOT IN FORCE AS DESCRIBED BY THE PROJECT BRIEF: the brief's 'property 10% final, ISX-listed shares exempt, unlisted shares 15%' triplet could not be sourced and is not built. The official consolidated Income Tax Law contains no such articles and its CPA-orders note expressly preserves the Decision 120/2002 property-transfer taxes (https://tax.mof.gov.iq/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D8%A7%D9%84%D8%AF%D8%AE%D9%84-%D8%B1%D9%82%D9%85-113-%D9%84%D8%B3%D9%86%D8%A9-1982-%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87/); PwC's CGT quick chart states 'Capital gains are subject to the normal PIT rate' for Iraq individuals (https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates) and PwC's corporate income-determination page states gains on shares and bonds outside a trading activity 'may be exempted from tax' (https://taxsummaries.pwc.com/iraq/corporate/income-determination). The 10% that does exist is the real-estate basic tax on annual rental revenue, not a gains tax (https://taxsummaries.pwc.com/iraq/individual/other-taxes).

Unclassified assets: crypto, funds/ETFs outside a professional-trading fact pattern, and art, jewellery or other valuables are unclassified: no dedicated Iraqi rule was located in the reviewed official text, which fixes no rate and grants no exemption for them. The calculator records these disposals and charges nothing as an explicitly unclassified treatment; that zero is not a sourced rate or exemption. No holding-period tests, annual CGT allowance or indexation exist in the reviewed law. Sources: https://tax.mof.gov.iq/%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%B6%D8%B1%D9%8A%D8%A8%D8%A9-%D8%A7%D9%84%D8%AF%D8%AE%D9%84-%D8%B1%D9%82%D9%85-113-%D9%84%D8%B3%D9%86%D8%A9-1982-%D9%88%D8%AA%D8%B9%D8%AF%D9%8A%D9%84%D8%A7%D8%AA%D9%87/ and https://taxsummaries.pwc.com/iraq/corporate/income-determination

Latest consolidated official material located (PwC's Iraq pages were last reviewed 24 June 2026 with the same scales); confirm any budget-law adjustment before production use. Source: https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates