Economic Tax Treaty between the Netherlands and Iraq

Today, the Kingdom of the Netherlands announces the conclusion of a new economic tax agreement with Iraq concerning income tax revenue generated by Dutch steel companies operating within Iraqi core territory.

Following constructive discussions between both sides, the Netherlands and Iraq have agreed on a structured fiscal arrangement aimed at strengthening economic cooperation and encouraging Dutch steel production within Iraqi core regions.

Under this framework, qualifying Dutch economic activity will fall under an agreed tax return mechanism between both countries. The arrangement will remain in effect for as long as Iraq retains its current steel production specialization.

Why this matters

This agreement creates a practical basis for mutual economic benefit and offers Dutch steel producers a clear strategic incentive to position themselves in the most relevant Iraqi core regions.

For the Netherlands, the arrangement supports stronger fiscal returns tied to Dutch production abroad. For Iraq, it helps encourage concentrated industrial activity in eligible territory and strengthens economic coordination between our countries.

This agreement also builds on a model that has already delivered meaningful results for the Netherlands through earlier international fiscal cooperation. It is another step in expanding smart, targeted economic policy that produces tangible value for our country.

What this means for business owners

Dutch steel producers who want to participate in and benefit from this arrangement should ensure that their factories are operating in Iraqi core regions.

Relocating production to these areas offers several strategic advantages:

• Better alignment with the treaty structure

• Stronger Dutch economic positioning abroad

• Greater contribution to national fiscal returns

This makes the agreement especially relevant for eco players looking to optimize both production placement and national economic contribution.

Important clarification

Eligibility under this arrangement is determined strictly by Iraqi core status.

Factories located outside recognized Iraqi core territory do not fall under the intended treaty structure, even if they are under Iraqi control at the time.

Political clarification

This agreement reflects the constructive relationship between the Netherlands and Iraq and forms part of broader economic cooperation between our countries.

Its primary purpose is practical and economic, focused on coordination, investment, and strategic placement.

Together, we strengthen our economic position through smart coordination and targeted international cooperation.

Ministry of Finance

Kingdom of the Netherlands