Summary
I. Total ownership of project land allowed, though investor may not own land containing oil, gas or mineral resources.
II. 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).
III. Full repatriation of project investment and profits allowed. Project income tax exempt for ten years from date production commences or offer of services; no provision for extension of income tax exemption.
IV. Import of spare parts tax exempt up to 15% of project cost.
V. Hotels, hospitals, universities, schools, tourist institutions granted tax-exempt import of linens, carpets, furniture and other renovation items every three years.
VI. Employment of foreign workers allowed, provided no capable Iraqis available; foreign workers may repatriate earnings.
VII. Vehicles, equipment, instruments, etc. tax exemption from duties, taxes and import licenses, provided they are imported within two years of approval granted by Investment Commission Chairman.
VIII. Foreign investor and capital treated on equal footing with national investor and capital.
IX. KRG will provide services (water, electricity, sewage, public road, telecommunications, etc.) to the boundary of the project.
X. Import of raw materials for production tax exempt for customs duties for five years.
XI. Additional incentives for projects in “less developed areas” and “joint projects” between Kurds and foreigners. Foreign and/or domestic insurance of project allowed.
XII. 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.”