The First Amendment of Investment Law Number 13 of 2006
In the name of the people
Presidency Council
Decision No. (2)
Based on what the House of Representatives passed, as per the directives of Article One of Item (61) and Paragraph (A) of Article Five of Item (138) of the constitution,
The Presidential Council has decided in its session held on 04 January 2010 to pass the following into law:
No (2) for the year 2010
First Amendment on Investment Law
No (13) for the year 2006
Item 1 – The text of Articles (One) and (Two) of Item (5) is revoked from law to be replaced with the following:
One: In the regions and governorates that are not affiliated with a region, Investment Commissions are to be formed, which have corporate personalities, and are represented by their heads or anyone authorized by the head, and are funded from the region or governorate budget, and have the authority to issue Investment Licenses, investment planning, and encouragement, and can open branches in the area where they have jurisdiction in coordination with the National Commission of Investment to ensure that the law is properly enforced.
Two:
A- The commission is headed by an employee with expertise and specialization, who is to be appointed in the post of a general manager for (5) years as suggested by the government that is not affiliated with a region and with the approval of the Presidential Council. The head of the commission is to be the chairman of the board of directors for the commission.
B- The head of the commission has a deputy to be appointed in the post of an assistant general manager for (5) five years by the region or the governorate not affiliated with a region, and is to be the deputy chairman of the board of directors.
C- The commission has a board of directors made up of (7) seven members including the head of the commission and his/her deputy.
D- The region or the governorate not affiliated with a region is to appoint two of its local officials from related agencies, with an administrative level of no less than a manager, as part time members in the board of directors for (3) three years.
E- The region or the governorate not affiliated with a region is to appoint, based on the suggestion of the head of the commission, three private sector individuals, with expertise and specialization, and with at least a college degree, and who have committed no felony or disgraceful offence, or declared their bankruptcy, as members in the board of directors for (3) three years, with rewards to be determined according to the internal code of the commission.
F- It is stipulated in the appointment of the chairman of the board and his deputy and the members of a region or a government not affiliated with a region, that it be done in coordination with the National Commission of Investment, and that they not be members in a Governorate Council or be deputies or assistants of the Governor.
G- The Governor, his deputies, his assistants, and the Governorate Council chairman and members do not have the right to be chairman, deputy chairman, or members of the Investment Commission in the region or the governorate not affiliated with a region.
H- The appointment and dismissal of the chairman and members of Investment Commission in the Governorate not affiliated with a region is done in coordination with the National Commission of Investment.
Item 2 – The text of Item (10) is revoked from the law and is replaced by the following:
One: The Iraqi or foreign investor enjoy the same privileges, facilities, and guarantees, and submit to the obligations stated in this law.
Two:
A- The Iraqi or foreign Investor have the right to own lands and properties which belong to the government, for a revenue to be calculated based on a special system, and have the right to own lands and properties belonging to mixed and private sectors for the exclusive purpose of executing housing projects.
B- A mark to prevent discretion is to be placed on the property deed until the foreign investor completes the execution of his obligations, with a confirmation from the Investment Commission that issued the license.
C- The Iraqi or foreign investor commits to abide by the purpose for which the land or property ownership was given, and not to trade in it.
D- If the Iraqi or foreign investor who was given ownership of a land or property as per this law, failed to fulfill their obligations in the period specified in the agreement made with the Investment Commission who issued the license, then the Real Estate Registration Administration, based on a request from said commission, would revoke the registration and return the land or property to its former owner in return for paying back the sale price.
E- The Iraqi or foreign investor commits to make residential units within a period specified in the agreement, and to sell or lease them to citizens as per the directives issued for that purpose. The Iraqi or foreign investor can handle the rest of the residential project for as long as the license is valid as per the agreement terms made with the investor.
Three:
A- The Iraqi or foreign investor can lease lands and properties from the Government, private, or mixed sectors to establish investment projects on them for a period that does not exceed the period of the license, which does not exceed (50) fifty years that can be renewed after considering the nature of the project and its economic feasibility.
B- The investment commission which issues the license can make an agreement with the Iraqi or foreign investor to return the project to the government, the region, or the governorate not affiliated with a region after the expiry of the license period and with the terms agreed upon in the agreement signed with the investor.
C- The Iraqi or foreign investor can transfer the ownership of the investment project in whole or in part during the period of the license to any other Iraqi or foreign investor, provided that the new investor continues the work of the project in the same specialization or in another specialization after securing the approval of the commission which granted the license. The new investor replaces the old one in terms of rights and obligations stipulated by this law and the terms of the agreement signed with the said investor. In case the Iraqi or foreign investor transfers the ownership of the project during the period in which they have privileges, facilities, and guarantees granted by the agreement, then the new investor continues to enjoy them until the end of that period.
D- The commission which granted the license can make an agreement with the Iraqi or foreign investor to own the investment project as land and building, or just as building, depending on whether the project was a housing one or not respectively and consecutively, after the end of the license period without enjoying the privileges, facilities and guarantees stated in this law.
Four:
A- The procedures of leasing government properties to Iraqi and foreign investors for establishing investment projects as per this law are excluded from the directives of the Sale and Lease of Government Assets Law No. (32) for the year 1986, or any other law replacing it. The basis of calculating the rent is determined by a system made for this purpose.
B- The procedures of selling government properties to Iraqi and foreign investors for establishing housing projects as per this item of the law are excluded from the directives of the Sale and Lease of Government Assets Law No. (32) for the year 1986, or any other law replacing it.
Item 3 – The text of Paragraph (A) of Article (Two) of Item (11) of the law is revoked, to be replaced by the following:
A- Dealing in Iraq Stock Exchange with shares and bonds that are dealt in it, and acquiring membership of private stock and mixed companies, even when there are properties within the assets of said companies.
Item 4 – Article (Four) of Item (20) of the law is revoked, to be replaced by the following:
Four:
A- When a foundation request is denied, then the applier can request reconsideration from the head of the commission of the Region or governorate not affiliated with a region within (15) fifteen days from the date of notification of the rejection. The head of the addressed commission should make a decision about the request within (7) days from the date the plea was registered in his office.
B- The plea submitter can make an objection at the National Commission of Investment within (15) fifteen days from the date the rejection decision was issued. The Commission has to make a decision about the objection within (15) fifteen days from the date it was registered at the office of the head of the National Commission of Investment.
C- If the National Commission of Investment refused a foundation request submitted to it, then the requester can ask the Commission to reconsider its decision within (15) fifteen days from the date the requester was notified of the refusal decision. The Commission has to make a decision about the reconsideration plea within (7) seven days from the date it was registered at the office of the commission head. The commission’s decision can be objected to at the Council of Ministers within (15) fifteen days from the date of its notification.
Item 5 – A new item is added to Chapter Seven (General Rules) of the original law. It is given the number (30), and the subsequent Items are renumbered accordingly, and as follows:
The Ministry of Finance, and the Ministry of Municipal and Public Works, Baghdad and other governorate municipal administrations, Commissions and other agencies not related to a ministry are committed to provide lands and properties appropriate for establishing investment projects and notifying the National Commission about their numbers, areas, ownerships, classifications and uses. The National Commission assigns them to Iraqi or foreign investors according to a system suggested by the National Commission and with the approval of the Council of Ministers.
Item 6 – A new paragraph is added to the text of Item (32) so that the Item then has two paragraphs (A) and (B). It reads as follows:
A- The directives of this law apply to mixed and private sector working projects by request from their administrations and the approval of the commission without a backward effect.
B- The public sector projects contracted for rehabilitation or operation with private and mixed sectors can have all the privileges, facilities and guarantees permissible by the law. This also applies to projects that were contracted before this law was passed, provided that the application does not mean exemption from any fees or taxes which were due before this law was passed.
Tariq Al-Hashimi Adel Abdul Mahdi Jalal Talibani
Vice President Vice President President
Rationale
In order to facilitate and organize work in the National Commission of Investment, and create a climate that encourages investment in Iraq, especially in the housing sector, and to remove any legal obstacles that might stand in its way, in a manner that positively expedites the economical development and rehabilitation in Iraq, this law was passed.