Iraq and Switzerland: A New Era in Tax Cooperation

Iraq and Switzerland took a significant step towards enhancing economic cooperation by initialling an agreement to prevent double taxation and tax evasion on income and capital. The agreement was signed on Wednesday, 26 February 2025, and is expected to create a more favourable investment climate for businesses operating between the two nations.

The Iraqi delegation was led by Mr. Mohammed Hamza Mustafa, Director General of the Legal Department and Acting Director General of the General Tax Authority. The negotiations also included financial and legal experts, as well as a representative from the Iraqi Fund for External Development.

This agreement is designed to reduce tax burdens on Swiss companies and investors, encouraging greater economic engagement with Iraq. Given Switzerland’s expertise in tax policy and collection, the cooperation is expected to attract Swiss capital and boost investments in Iraq, particularly in key sectors that contribute to economic development.

By eliminating the risk of double taxation, the agreement not only strengthens trade ties but also fosters confidence among foreign investors. With Switzerland being a hub for global finance and investment, this step marks a milestone in Iraq’s efforts to integrate into international financial systems and enhance its economic framework.

Source: Ministry of Finance