Taxes - Accounting

Iran

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: VAT
Tax rate: 3%
Reduced tax rate: Numerous exemptions have been granted. For more information consult the VAT Law.

Corporate taxes

Tax rate

Corporation tax

25%

Capital gains taxation

Capital gains are taxed as part of taxable income.

Main allowable deductions and tax credit

Branches and representative offices of companies and foreign banks whose activity is limited to marketing and information for their parent companies are exempt from corporate taxes.

If all or part of the project is entrusted by a foreign contractor to an Iranian company, purchases made by this company for the main contractor are not taxed.

Within the framework of contracts concluded with a ministry, a governmental or a municipality organisation, purchases of equipment and material not produced locally are exempt from tax provided the public recipient is mentioned in the contract.

Industrial and mining projects of the private sector enjoy 80% tax exemption for 4 years and 100% for 10 years in the poor zones. These exemptions do not apply to projects located within a radius of 120 km around Teheran, 50 km around Isfahan and 30 km from the capital of other provinces.

Tourist setups provided with operation license of the Ministry of culture enjoy an annual tax exemption of 50%.

Other corporate taxes

Real estate tax, stamp duty, social security contributions.

Individual taxes

Tax rate

Annual taxable income	from 15 to 35%
From IRR 0 to 30,000,000	15%
From IRR 30,000,000 - 100,000,000	20%
From IRR 100,000,000 - 250,000,000	25%
From IRR 250,000,000 - 1,000,000,000	30%
IRR 1,000,000,000 and over	35%

Allowable deductions and tax credit: The most important personal deductions are: donations to approved charities; social insurance fund contributions (and similar contributions paid abroad); life insurance premiums; pension plan contributions; and medical fund contributions.
Special expatriate tax regime: There is no special tax regime for expatriates.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: List of fiscal conventions with different countries
Withholding taxes: Dividends: 0; Interests: 0/5%; Royalties: 0/5%/7.5%.
Bilateral agreement: Iran and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
16/07/2001	-	16/07/2001

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Iranian National Tax Administration
Other domestic resources: Informations about Iran Tax system

Accounting Rules

Tax year: The financial year begins on March 21st and ends on March 20th of the following year.
Accounting standards: The International Financial Reporting Standards (IFRS) has developed gradually in Iran. However, there are still differences between the national standards and the IFRS standards.
Accounting regulation bodies: Audit company
Accounting reports: Profit and loss account, auditors' report, balance sheet.
Publication requirements: Financial statements must be submitted annually.
Professional accountancy bodies: Institute of Chartered Accountants
Iranian Association of Certified Public Accountants
Certification and auditing: According to Iranian legislation, certain companies should be audited by Iranian certified Public accountants (IACPA). For more information see Dayarayan website.
Accounting news: Information on accounting issues in Iran