Concerns about money laundering and terrorist financing.

Protection of the national financial system and stability.

Lack of regulatory oversight and consumer protection.

Perceived speculative nature and risks to investors.

Central Bank of Iraq (CBI) - Official Statements: While direct English links to the original Arabic directives are often difficult to find, reputable news outlets have widely reported on the ban.

A report by Reuters detailing the ban: https://www.reuters.com/markets/currencies/iraqi-authorities-issue-arrest-warrants-over-cryptocurrency-trading-2022-04-20/

Al-Monitor also reported on the Iraqi government's crackdown: https://www.al-monitor.com/originals/2022/05/iraq-cracks-down-crypto-trading-amid-concerns-money-laundering

No specific capital gains tax for cryptocurrency. Since cryptocurrency trading is prohibited, there are no provisions for taxing gains from such activities.

General Context: Iraq does not have a comprehensive, standalone capital gains tax on the sale of movable assets (like shares or other financial instruments) in the way many Western countries do. Gains from the sale of specific assets (e.g., real estate) might be taxed, but this does not extend to virtual assets given their illegal status.

No specific income tax for cryptocurrency. Income derived from crypto-related activities (e.g., mining, staking, trading profits) would not be recognized as legitimate income for tax purposes because the underlying activity is illegal.

General Context: Iraq has a progressive income tax system for individuals and a corporate income tax. However, these apply to legitimate, recognized sources of income.

No specific VAT/GST rules for cryptocurrency. Iraq generally has a sales tax rather than a comprehensive Value Added Tax (VAT) or Goods and Services Tax (GST) system in the full sense. Even in jurisdictions with VAT, crypto often receives special treatment (e.g., exempt from VAT when treated as a currency or financial service). In Iraq, the ban means there are no provisions for sales tax on crypto transactions.

No specific reporting requirements for cryptocurrency for tax purposes. Because crypto activities are banned, the government does not require or accept reports on crypto holdings or transactions for taxation.

Anti-Money Laundering (AML) / Counter-Terrorist Financing (CTF): Any individual or business found to be engaged in cryptocurrency activities would likely face investigations under Iraq's general anti-money laundering and counter-terrorist financing laws, not tax reporting requirements. These laws would treat illegal crypto transactions as potential financial crimes.

None. There is no crypto-specific tax legislation in Iraq. The regulatory stance is one of prohibition, not regulation and taxation.

Investigations for financial crimes (e.g., money laundering).

Overview of Iraq's Tax System: Iraq's tax regime is centralized under the Ministry of Finance, with a focus on maximizing revenue from oil and non-oil sectors while simplifying compliance for businesses. The tax laws are primarily codified in the Personal Income Tax Law, Corporate Income Tax Law, and various decrees issued by the Council of Ministers.

Iraq Overview - Worldwide Tax Summaries

Tax Rates: Personal income tax rates range from 15% to 30%, depending on income brackets. Corporate income tax is flat at 20% for most entities, with specific rates applicable to oil and gas sectors.

Iraq - Individual - Taxes on personal income

Recent Reforms: In 2023, Iraq introduced amendments to streamline the corporate tax registration process and enhance transparency in tax administration.

Doing Business Guide Iraq - Understanding Iraq's Tax Position

Central Authority: The Ministry of Finance oversees all tax collection and enforcement activities, ensuring uniform application across the country.

Legal Framework and Procedures for Corporate Income Tax

FATF/Moneyval Status: Iraq is a member of the Financial Action Task Force (FATF), adhering to international standards for combating money laundering and terrorist financing.

Tax & Regulatory Compliance in Iraq

Business Registration: Foreign entities must obtain a license from the National Investment Commission (NIC) to operate in Iraq. The process involves submitting an application, providing proof of business registration, and paying associated fees.

Iraq's National Investment Commission (NIC)

Sector-Specific Licenses: Certain industries, such as oil and gas, require additional permits from the Ministry of Oil or related regulatory bodies.

Foreign Business Registration in Iraq

Anti-Money Laundering Laws: Iraq has enacted legislation to combat money laundering and terrorist financing, mandating financial institutions to implement robust KYC procedures.

Tax & Regulatory Compliance in Iraq

Reporting Obligations: Financial entities are required to report suspicious transactions to the Central Bank of Iraq within specified timeframes.

The taxation of income in Iraq: the current approach and what to expect

Original fine range: IQD 500,000 – IQD 2,000,000 per annum (approximately EUR 300,000 – EUR 1,200,000 or USD 340,000 – USD 1,350,000 based on an exchange rate of 1 EUR = 1.66 IQD and 1 USD = 1.58 IQD as of October 2023).

Iraq Tax — 2025 | OpenAccountants

Audit Procedures: The Ministry of Finance conducts regular audits to ensure compliance with tax laws, focusing on high-risk sectors and taxpayers. In 2022, approximately 15% of corporate entities were subject to audit, with a notable increase in inspections post-reform.

Doing Business in Iraq: Overview | Practical Law)

Corporate Income Tax: Applies to net profits of Iraqi and foreign companies at a rate of 20%. Specific deductions are allowed for depreciation, amortization, and certain business expenses.

Taxes on corporate income - Iraq - Worldwide Tax Summaries

Withholding Taxes: Withholding taxes are imposed on dividends, interest, and royalties at rates of 10%, 15%, and 20% respectively.

Iraq - Corporate - Tax administration

Administrative Burden: Complex registration processes and frequent legislative changes pose challenges for foreign investors. Recent reforms have reduced the registration time from 6 months to 3 months but still require multiple approvals.

Iraq Foreign Company Compliance: Tax, Licensing & Permits

Enforcement Inconsistency: Variability in enforcement actions across different regions can lead to unpredictability for taxpayers. Statistics from 2023 indicate that enforcement actions were consistent in major cities like Baghdad and Erbil but varied significantly in remote areas.

Legal Framework and Procedures for Corporate Income Tax

Iraq Overview - Worldwide Tax Summaries

Iraq - Individual - Taxes on personal income

Doing Business Guide Iraq - Understanding Iraq's Tax Position

Legal Framework and Procedures for Corporate Income Tax

Iraq's National Investment Commission (NIC)

Foreign Business Registration in Iraq

Tax & Regulatory Compliance in Iraq

The taxation of income in Iraq: the current approach and what to expect

Iraq Tax — 2025 | OpenAccountants

Doing Business in Iraq: Overview | Practical Law)

Taxes on corporate income - Iraq - Worldwide Tax Summaries

Iraq - Corporate - Tax administration

Iraq Foreign Company Compliance: Tax, Licensing & Permits