IQ · AsiaPK · Asia
Iraq vs Pakistan: tax rates compared
Pakistan has an income tax rate of 35%, 20pp above Iraq's 15%. The 200-country average is 28%: Iraq sits below it, Pakistan sits above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IQ | PK | Difference |
|---|---|---|---|
| Income Tax | 15% | 35% | PK +20 pplargest gap |
| Corporate Tax | 15% | 29% | PK +14 pp |
| VAT | 0% | 18% | PK +18 pp |
| Capital Gains Tax | 0% | 15% | PK +15 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 15% | Source: PWC Worldwide Tax Summaries — Iraq (Individual, Taxes on personal income) · as of 2026-06-24 |
| Pakistan | 35% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19 |
| Difference | −20 pp | Pakistan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 15% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Pakistan | 29% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −14 pp | Pakistan higher |
Pakistan has a corporate tax rate of 29%, 14pp above Iraq's 15%. The 201-country average is 22.6%: Iraq sits below it, Pakistan sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: PWC Worldwide Tax Summaries — Iraq (Corporate, Other taxes) · as of 2026-06-24 |
| Pakistan | 18% | Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19 |
| Difference | −18 pp | Pakistan higher |
Pakistan has a VAT rate of 18%, 18pp above Iraq's 0%. The 181-country average is 15%: Iraq sits below it, Pakistan sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Iraq · as of 2025-10-01 |
| Pakistan | 15% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19 |
| Difference | −15 pp | Pakistan higher |
Pakistan has a capital gains tax rate of 15%, 15pp above Iraq's 0%. The 175-country average is 10.3%: Iraq sits below it, Pakistan sits above it. Iraq's figure is dated 2025-10-01 and Pakistan's 2026-01-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: PWC Worldwide Tax Summaries — Iraq (Individual, Other taxes) · as of 2026-06-24 |
| Pakistan | 0% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19 |
| Difference | 0 pp | displayed rates match |
Iraq and Pakistan share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.