SUMMARY OF INVESTMENT INCENTIVES IN IRAQ

FEDERAL GOVERNMENT OF IRAQ INVESTMENT LAW	KURDISTAN REGIONAL GOVERNMENT INVESTMENT LAW
Investors may only rent or lease project land for a maximum of 50 years.	Total ownership of project land allowed, except for land containing oil, gas or mineral resources.
Prohibits investment in oil and gas extraction/ production, as well as banks and insurance companies.	Does not explicitly prohibit investment in these areas, but Supreme Council for Investments may allow investment in any sector it chooses other than those explicitly listed in the law’s categories (e.g. hotels, transportation, services).
Full repatriation of project investment and profits allowed.	Full repatriation of project investment and profits allowed.
Project income tax exempt for ten years from starting date. If Iraqis accounted for more than 50% of original project investment, project income tax exemption may be extended up to 15 years in total.	Project income tax exempt for ten years from starting date; no provision for extension of income tax exemption.
Import of spare parts tax exempt up to 20% of project cost.	Import of spare parts tax exempt up to 15% of project cost.
Hotels, hospitals, universities, schools, tourist institutions granted tax-exempt import of linens, carpets, furniture and other renovation items every four years.	Hotels, hospitals, universities, schools, tourist institutions granted tax-exempt import of linens, carpets, furniture and other renovation items every three years.
Employment of foreign workers allowed, provided no capable Iraqis available; foreign workers may repatriate earnings.	Employment of foreign workers allowed, provided no capable Iraqis available; foreign workers may repatriate earnings
tax exemption from duties, taxes and import licenses for vehicles, equipment, instruments, etc., provided they are imported within three years of investment license approval.	tax exemption from duties, taxes and import licenses for vehicles, equipment, instruments, etc. provided they are imported within two years of approval granted by Investment Commission.
Foreign investor and capital treated on equal footing with national investor.	Foreign investor and capital treated on equal footing with national investor.
Law silent as to provision of basic services to project area.	KRG will provide services (water, electricity, sewage, public road, telecommunications, etc.) to the boundary of the project.
Law silent as to import of raw materials for production.	Five years Duty tax exemption for Imports of raw materials for production.
Law silent as to additional incentives for project investment in less developed areas or joint projects between Iraqis and foreigners.	Additional incentives for projects in “less developed areas” and “joint projects” between Kurds and foreigners.
Foreign and/or domestic insurance of project allowed.	Foreign and/or domestic insurance of project allowed.
Regions and Governorates shall pass investment laws that do not contradict the federal investment law.	Supremacy of Kurdistan Law (Art. 115 of Iraq’s Constitution): “If there is any contradiction (between this law and “other relevant laws”), the provision of this law shall be applicable.”