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 , In Farsi.
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

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.

Learn more about Service Providers in Iran on Globaltrade.net, the Directory for International Trade Services.

Corporate Taxes

Company Tax: 0.25
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%.

Sources of Fiscal Information

Tax Authorities: Iranian National Tax Administration
Other Domestic Resources: Informations about Iran Tax system

Learn more about Taxes and Accounting in Iran on Globaltrade.net, the Directory for International Trade Services.

Intellectual Property

National Organizations: On July 6, 1993, the Iranian Parliament adopted the amended text of the Paris Convention dealing with industrial property. This Parliament also authorised the government to sign the Convention creating the WIPO (branch of Paris Convention) signed on 14/07/1967 at Stockholm as well as the amendments which followed on 2nd October 1979. See the WIPO site.
The website, gives useful information on the various organisations dealing with questions of intellectual property in Iran.
Regional Organizations: no

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Patent and Trademark Registration Law, July 1931.
Trademark Patent and Trademark Registration Law, July 1931.	weak	Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design no law
Copyright Law for the Protection of Authors		WIPO Copyright Treaty
Industrial Models no law

Legal Framework

Independence of Justice: The judiciary is not independent in Iran. The Supreme Leader directly appoints the head of the judiciary, who in turn appoints senior judges.
Equal Treatment of Nationals and Foreigners: Foreign nationals cannot expect a fair trial from the country's judicial system.
The Language of Justice: The language of justice is Persian.
Recourse to an Interpreter: It is possible to have an interpreter.
Sources of the Law and Legal Similarities: The main source of the law is the constitution of 1979 (revised in 1989), which codifies Islamic principles of the government.
Checking National Laws Online: Iran laws on-line

Learn more about Lawyers and Legal in Iran on Globaltrade.net, the Directory for International Trade Services.

Standards

National Standards Organizations: ISIRI, Institute of Standards and Industrial Research of Iran.
Integration in the International Standards Network: The Institute of Standards and Industrial Research of Iran - ISIRI, has been authorised to lay down standards. ISIRI is a member of the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Organization of Legal Metrology (OIML), Pact Meter about the International Office of Weights & Scales (BIPM), and member of the World Association of Industrial & Technological Research Organizations (WAITRO).
Classification of Standards: Iran applies the national standards (ISIRI) and the ISO.
Online Consultation of Standards: Iranian standards can be consulted on the ISIRI website.
Certification Organizations: Institute of Standards and Industrial Research

Business Practices

General Information: Buzzle, Summary on business practices in Iran
kwintessential , cross cultural solutions
Opening Hours and Days: Government organisations can be contacted from 7:30 to 14:30 from Saturday to Wednesday and 7:30 to 13:30 on Thursdays. Businesses are open from 8:30 to 12:30 and after the lunch break up to 7 p.m. On Thursday, companies are open from 8:30 to 12:30. Stores are open from 9:00 to 13:00 and 16:00 to 20:00. Thursday and Friday are weekends in Iran.

Public Holidays

Death of Imam Hossein	January 29 and 30
Victory of Islamic Revolution	February 11
40th day after Ashura (main religious festival of Shiism)	March 10
Nationalisation of oil	March 20
New year	March 21-24
Day of the Islamic Republic	April 1

Periods When Companies Usually Close

Holidays of the new year

from mid-March to start April

Any Comments About This Content? Report It to Us.

Iran: Business Environment