Does the same rule apply in Baghdad, the Kurdistan Region and Basrah?
People often ask: I signed a contract in Erbil, or set up a company in Sulaymaniyah, or work in Basrah; do the same laws apply to me as in Baghdad? There is no one-word answer. It comes from the way the 2005 Constitution of the Republic of Iraq divides power, and this page explains that division in practical terms. The Law Office of Ali Barakat, in Baghdad, al-Yarmouk, deals with questions touching all three places.
The starting point: the Constitution binds everyone
Article 13 makes the Constitution the supreme law, binding everywhere in Iraq, and voids any provision of a regional constitution or other law that conflicts with it. That holds equally in Baghdad, Erbil and Basrah.
Then comes the division:
- Article 110 lists the powers reserved to the federal authorities, among them foreign policy, national security, fiscal and customs policy and currency, trade across regional and governorate borders, weights and measures, and nationality and residence.
- Article 115 gives everything not on that list to the regions and to governorates not organised in a region, and where powers are shared, gives priority to the region's or governorate's law in case of conflict.
The Kurdistan Region: its own legislative power
Article 117 recognises the Kurdistan Region and its existing authorities as a federal region. Article 121 gives regional authorities legislative, executive and judicial powers, except for the exclusive federal powers, and lets them amend how a federal law applies in the Region where it conflicts with regional law on a matter outside those exclusive powers. Article 141 keeps in force the laws made in the Region since 1992, along with its government's decisions, its court judgments and its contracts, unless amended or repealed under the Region's own laws or contrary to the Constitution.
An example from the Income Tax Law. The Iraqi Legislation Database shows Income Tax Law No. 113 of 1982 with notes on how it applies in the Region:
- Paragraph 10(c) of article 1, which makes nationals of Arab countries working in Iraq resident regardless of length of stay, was suspended in the Region by Law No. 26 of 2007. In its place, people from the Region living outside Iraq are treated as resident for tax purposes.
- The deadline for the annual income return in article 27 is before the first of June federally, and before the first of July in the text as amended for the Region.
So the same person may be classified differently depending on where the law is being applied to them.
Other examples on this site: forming a company in Sulaymaniyah or Duhok goes through the Region's own bodies and requirements, as in company formation in Sulaymaniyah and Duhok; investment in the Region has its own board, as in the Kurdistan Board of Investment. The official sources for regional legislation also differ from federal ones; see official references for federal law and Kurdistan legislation.
Basrah and Baghdad: governorates outside a region
Basrah is not a region. Like Baghdad, it is a governorate not organised in a region, and federal law applies there just as in the capital. Article 122 of the Constitution gives such governorates broad administrative and financial powers under administrative decentralisation, to be regulated by law.
That law is the Law of Governorates Not Organised in a Region No. 21 of 2008, as amended. Its article 2 makes the governorate council the legislative and supervisory authority in the governorate, with power to issue local legislation to run its affairs, provided it does not conflict with the Constitution or with federal laws within the exclusive federal powers. Article 7 empowers the council to issue local legislation, regulations and instructions organising administrative and financial affairs, without conflicting with the Constitution and federal laws.
The difference between Baghdad and Basrah therefore does not lie in the major statutes, such as the Civil Code, the Labour Law and the Companies Law. It can show up in:
- Local legislation issued by the governorate council within its powers.
- Local bodies exercising federal powers in the governorate, such as the governorate investment commission, as in industrial investment land in Basrah.
- Territorially competent courts: Basrah's courts belong to their own appeal region, not to the Baghdad courts.
Drafting a contract in Basrah remains subject to the federal Civil Code; see drafting a contract when dealing in Basra.
How to read any question
- Is the matter on the list of exclusive federal powers in article 110? If so, the rule is the same throughout Iraq.
- If not, and it arises in the Region, look for a regional law or an amendment to how the federal law applies there.
- If it arises in a governorate not organised in a region, federal law is the base, and then any local legislation of the governorate council is checked.
Legal basis and sources
- Constitution of the Republic of Iraq 2005, articles 13, 110, 115, 117, 121, 122 and 141 (Official Gazette No. 4012 of 28/12/2005)
- Law of Governorates Not Organised in a Region No. 21 of 2008, as amended, articles 2 and 7 (Official Gazette No. 4070 of 31/3/2008)
- Income Tax Law No. 113 of 1982, as amended, articles 1 and 27 and the notes on its application in the Kurdistan Region
Frequently asked questions
Does the federal Labour Law apply in Basrah?
Yes. Basrah is a governorate not organised in a region, and federal law applies there.
Can the Kurdistan Region amend a federal law?
It can amend how that law applies in the Region where the two conflict, outside the exclusive federal powers, under article 121(2).
Can the Basrah governorate council make law?
It issues local legislation, regulations and instructions on administrative and financial affairs, provided they do not conflict with the Constitution and federal law.
Related topics and articles
- 01Official references for federal law and Kurdistan Region legislationWhere to obtain the official text of a federal Iraqi statute and of Kurdistan Region legislation, and how the Gazette and the Legislation Database differ.
- 02Forming a company in Sulaymaniyah or Duhok before the Region's companies directorateHow a local company is formed in Sulaymaniyah or Duhok: the companies directorates under the General Directorate of Companies Registration in the Kurdistan Region's Ministry of Trade and Industry, the online account, local trade-name approval, and the published documents and conditions.
- 03The Kurdistan Board of Investment and an investment licence in the RegionInvestment Law 13/2006 on the Region’s commission and a Kurdistan licence, with no regional law number cited without a published official instrument.
- 04Drafting a contract when dealing in BasraDrafting a contract when dealing in Basra under the federal Civil Code, followed from Baghdad.
- 05How to search for an Iraqi statute in the Legislation DatabaseA practical method for finding a federal Iraqi statute in the Iraqi Legislation Database: by title, number or year, then checking status and amendments.