Introduction

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At Babylon for Tax Consulting, we understand that taxation is at the core of every successful business. With deep expertise in Iraqi and regional tax law, our mission is to help companies meet their tax obligations with precision, compliance, and strategic advantage.

Whether you are a local enterprise or a foreign investor, tax compliance is not optional — it is a legal obligation that safeguards your operations, reputation, and financial integrity. Non-compliance with Iraqi tax regulations can expose your company to severe penalties and legal consequences. That’s why partnering with a specialized tax advisory firm is essential.

Our dedicated team of tax advisors and legal professionals offers end-to-end tax advisory and compliance servicesacross Iraq and the wider Middle East. We assist clients in navigating complex tax regulations, understanding their obligations, and securing full compliance with the General Commission for Taxes (GCT) and other relevant authorities.

Our clientele includes multinational corporations, energy companies, financial institutions, real estate developers, technology firms, and family offices. We take pride in delivering tailored tax solutions for every client — ensuring that compliance becomes an opportunity, not a burden.

At Babylon, we help our clients develop a clear understanding of Iraq’s tax framework. Broadly, Iraqi tax obligations fall under three main categories:

All employee income earned in Iraq — whether by locals or expatriates — is subject to taxation under Tax Instruction No. 1 of 2007. Employers are responsible for withholding and remitting this tax to the GCT monthly, ensuring full payroll compliance.

All companies operating in Iraq are subject to corporate tax on their net taxable profits. The general CIT rate ranges between 10% and 15%, depending on the nature of operations.
However, entities engaged in the oil and gas sector are taxed at a higher rate of 35%, as prescribed by the relevant petroleum laws and service contracts.

When a company awards a subcontract to another entity, it acts as a withholding agent — retaining a percentage of the subcontractor’s payment and remitting it to the GCT.
The applicable WHT rate varies between 1.8% and 10%, depending on the nature of the contract and the services rendered.

At Babylon for Tax Consulting, our tax advisory practice goes beyond compliance — we focus on helping you structure, plan, and manage your tax exposure efficiently.

We provide specialized tax support across multiple areas, including:

• Corporate Income Tax (CIT) – calculation, filing, and compliance.
• Employee Income Tax (EIT) – payroll, withholding, and monthly reporting.
• Withholding Tax (WHT) – compliance, reconciliation, and clearance.
• Transfer Pricing – intercompany arrangements and cross-border compliance.
• Value Added Tax (VAT) – advisory, readiness, and implementation planning.
• Customs Duties & Excise – import/export compliance and tariff optimization.
• Tax Structuring & Due Diligence – for mergers, acquisitions, and joint ventures.

Our services extend to legal and strategic advisory on complex tax matters, helping clients interpret and apply Iraqi tax laws effectively:

• Tax exemptions and incentives under Investment Law No. 13 of 2006.
• Contract taxability and project-based income assessment.
• Determination of applicable tax amounts and deductions.
• Legal support during tax audits, disputes, and litigation.
• Representation before the General Commission for Taxes and other government authorities.

We also provide full administrative assistance, including:

• Opening a taxation file with the GCT upon company registration.
• Obtaining a Tax Identification Number (TIN) and Tax Clearance Certificate.
• Preparing and filing audited financial statements with tax disclosures.
• Performing compliance checks for legal and tax obligations under Iraqi law.

For foreign investors and multinational companies, operating in Iraq involves navigating cross-border taxation rules, bilateral treaties, and withholding obligations.
Our experienced consultants provide expert guidance on:

• Taxation of foreign entities without a permanent establishment.
• Avoidance of double taxation under international treaties.
• Structuring of cross-border payments and service contracts.
• Tax treatment of foreign branches and representative offices.

Our tax practice spans multiple industries, reflecting Iraq’s diverse economy:

• Oil & Gas and Energy – technical service contracts, subcontractor taxation, and cost recovery.
• Construction and Infrastructure – contract structuring, WHT, and project tax management.
• Telecommunications & Technology – digital service taxation and cross-border billing.
• Financial Institutions – interest income, withholding, and compliance with GCT reporting.
• Real Estate and Investment – capital gains, land tax, and investment structuring.

• Local Insight, Global Expertise – Deep understanding of Iraqi tax administration combined with international experience across the Middle East and Europe.
• Integrated Legal & Tax Solutions – Our advisors and lawyers collaborate to ensure every tax matter is legally sound and compliant.
• Proactive Risk Management – We identify and resolve tax issues before they escalate.
• Transparent Process – Every calculation and filing is documented, traceable, and defensible.
• Personalized Service – Tailored to the unique structure, goals, and industry of your business.