Iraq
AI Agent Legal Status: undefined · Autonomy: none
Legal Framework
Iraq is in an extended reconstruction and institution-building phase following decades of conflict, sanctions, and instability. The legal framework is primarily focused on basic commercial law, investment promotion, and security-related regulations. There is no AI-specific legislation, and digital infrastructure remains underdeveloped outside of the Kurdistan Region. The National Investment Commission promotes foreign investment, but regulatory capacity for emerging technologies is minimal.
Key Laws & Regulations
- ◆Investment Law No. 13 of 2006
- ◆Companies Law No. 21 of 1997
- ◆Electronic Signature and Electronic Transactions Law No. 78 of 2012
- ◆Informatics Crimes Law (draft)
- ◆Kurdistan Region Investment Law No. 4 of 2006
- ◆Central Bank of Iraq Banking Law No. 94 of 2004
Business Formation
The National Investment Commission provides investment licenses with incentives including tax holidays and land grants. The Kurdistan Region of Iraq (KRI) has a separate investment authority with more streamlined processes. Common entity types include LLCs and joint stock companies. Foreign ownership up to 100% is permitted under the Investment Law for qualifying projects.
Tax Implications
Corporate income tax is 15% (35% for oil and gas companies). Investment Law projects receive tax holidays of up to 15 years depending on location and sector. Personal income tax ranges from 3-15%. The Kurdistan Region offers its own tax incentive packages. Iraq has limited double tax treaty coverage. The informal economy is substantial, and tax enforcement is inconsistent.
Opportunities
Iraq's reconstruction needs across every sector, from healthcare and education to energy and agriculture, create enormous potential demand for AI solutions if stability improves. The Kurdistan Region offers a more stable and business-friendly environment for cautious market entry. Iraq's young, growing population represents a large future digital market that early movers could position to serve.
Highlights
Iraq's large population (over 40 million) and oil wealth represent long-term economic potential. The Kurdistan Region of Iraq operates with greater autonomy and has attracted some international tech investment. Iraq's young population and growing mobile internet penetration create a foundation for future digital economy growth.
Risks & Challenges
Persistent security challenges, political instability, and institutional corruption create severe operational risks. Digital infrastructure is inadequate for sophisticated AI operations in most of the country. The legal and regulatory framework lacks provisions for emerging technologies, and judicial enforcement is unreliable. Sanctions and compliance requirements affecting certain Iraqi entities add complexity for international businesses.