Iraq has taken a number of steps to encourage a vibrant private sector. 

Foreign direct investment:  The new foreign investment law opens Iraq to foreign investment.  This will create jobs, transfer technology and make the economy competitive. 

Foreign firms may open wholly owned companies or purchase fully 100 percent of Iraqi firms in virtually all areas.  Foreign investment in oil and speculative real estate is restricted. 

Under the foreign direct investment law: 

• foreign firms receive national treatment,
• are not be subject to any local hiring or product requirements,
• and may remit profits at any time. 

Taxes:  The tax system that is simple, transparent, and stimulates economic growth.  The recently approved tax program establishes a maximum marginal tax rate of 15 percent on personal and corporate income. 

This tax policy will: 

• provide the Iraqi government with a stable revenue base,
• minimize distortions that result from more complex tax regimes,
• avoid problems of tax evasion associated with higher rates,
• create incentives for firms to invest and for employees to work as productively as possible.