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Italy vs Iraq
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇹 Italy
vs
🇮🇶 Iraq
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
23–43%
3-bracket IRPEF reform targeting completion
No change
3–15%
15% top; non-oil revenue diversification priority
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–22%
Digital economy VAT rules tightening
No change
0%
VAT introduction possible; IMF recommendations
No change

Corporate Tax Rate

Corporate Tax Rate
24%
Investment incentive rate (20%) extended
No change
15%
15%; diversification investment incentives
No change

Capital Gains Tax

Capital Gains Tax
26%
Flat 26% maintained
No change
15%
15% nominal
No change

Social Security & Payroll

Social Security / Payroll
~40%
Pension reform adjustments continuing
No change
~25%
SSIF reform; pension adequacy improving
No change
State, Regional & Local Taxes

🇮🇹 ItalyRegional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

🇮🇶 IraqGovernorate Taxes

Iraq's 18 governorates (muhafazat) have limited independent taxing powers under the federal system. The Kurdish Region of Iraq (KRI — Erbil, Sulaymaniyah, Dohuk) has its own tax administration and revenue share arrangement with Baghdad. The Federal Board of Supreme Audit and Tax Commission administer national taxes. Oil revenues dominate the Iraqi budget (~90% of government revenue), meaning formal taxation plays a smaller role than in most countries. Reconstruction and diversification remain key challenges.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Italy vs Iraq: Key Tax Differences (2026)

💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 3–15%). 🇮🇶 Iraq is more favourable for high earners.

🛒 VAT/Sales Tax: Italy has a higher consumption tax (4–22% vs 0%).

🏢 Corporate Tax: 🇮🇶 Iraq offers a lower corporate rate (15% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇮🇶 Iraq taxes investment gains at a lower rate (15% vs 26%), benefiting investors.

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