Double Taxation in Iraq – A Comparative White Paper
Published: October 2025 | Partners: AHK Iraq & Salt & Associate
This strategic white paper offers a legal deep-dive into Iraq’s income tax framework, comparing it with systems in Germany, the EU, and the United States. Developed following a high-level policy roundtable co-hosted by AHK Iraq and Salt & Associates, the paper outlines:
- How Iraq's current tax rules expose investors to double taxation
- Comparative insights from EU Directives, Germany's Grundgesetz, and U.S. tax relief systems
- Policy recommendations to modernize Iraq's tax law and attract sustainable investment
Key Reform Areas Identified:
- Replace the nationality-based nexus with the “effective management” test
- Expand treaty networks with Germany, France, the Netherlands, and the U.S.
- Introduce a statutory foreign tax credit (FTC) regime
- Institutionalize advance rulings and mutual agreement procedures
Foreign investors, especially from Europe and North America, will benefit from practical tools to mitigate tax risk, ensure legal certainty, and structure investments effectively.