Working in Iraq (Kurdistain) Tax free?

[norbit321]

Please could you help.

I have been offered a job in Iraq for an oil company 30 days and 28 days off (Rotational). Do I have to pay any local Taxes and will I be subject to income tax when I return to the UK, on my time off? Salary is paid in US Dollars.

Many thanks

[GlobalTaxAdviser]

Hi

While you should check with an adviser in Iraq as there are other considerations like being on an oil rig meaning you could be outside the Iraqi tax jurisdiction. Your employer should withhold tax on your salary

The bad news is that you could still be considered as tax resident in UK as well under the Statutory Residence Tests and normally means that you end up paying tax on the same income both in Iraq and UK and claim Double tax relief and chance you could end up paying tax at a higher rate. However, the good news under DT9801. There is unilateral relief meaning you will only pay tax in Iraq on the Iraqi income which I understand is lower than the UK

There maybe other considerations - expenses, social security etc

Please do revert if you require any more information.

Sash