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Chapter Five

Exemptions
Article 15
First A- The project that has obtained license from the Commission shall enjoy exemption from
taxes and fees for a period of (10) Ten Years as of the date of commencing commercial operation
for each stage of creation of the investment project, this does not include exemption from customs
duties taking into account items (First and Second) of Article(17) of the Law.
B- Exempt housing investment project of sorting fees and Real Estate registration fees, including
fee of repossession housing units for citizens ( Judicial fees ).
Second: The Council of Ministers shall have the right to propose draft laws to extend or grant
exemptions in addition to the exemptions stipulated in paragraph (First) of this Article, or
provide incentives, guarantees or other benefits to any project or sector or region and for the
years and percentages it deems appropriate in accordance with the nature of the activity, its
geographical location and its contribution to manpower employment and its effect on driving the
economic development, and for considerations of national interest.
Third: The National Commission for Investment has the right to increase the years of tax and
fees exemption in a way directly proportional to the increase in the Iraqi Investor share in the
project to reach fifteen years if the Iraqi Investor share in the project was more than 50%.

Article 16
If the project is moved during the granted period of the exemption from a development area to
another, the project shall receive, for the purposes of the exemption mentioned in paragraph
(First) of Article (15) during the remaining term, the treatment of the projects in the
development areas it is moving to, provided that the Commission is informed of such move.

Article 17
The project that obtains an investment license shall also enjoy the following:
First: Assets imported for the purposes of the investment project shall be exempted from taxes and
custom duties, but to be brought into Iraq through establishment stages of the project, and before
starting commercial operation of each stage in accordance with basic design of the project, and the
length of time for its implementation.
Second: The imported assets required for the expansion, development or modernization of the
project shall be exempted from fees in case they led to an increase in the designed capacity,
provided they are brought in within three years from the date of notifying the Commission of the
expansion or development. Expansion, for the purposes of this law, shall mean adding fixed
capital assets aimed at increasing the designed capacity of the project in commodities or services
or materials by a percentage exceeding (15%) fifteen percent. Development, for the purposes of

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