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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

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

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Tax Rates

Consumption Taxes

Nature of the Tax
VAT
Tax Rate
7%
Reduced Tax Rate
Numerous exemptions have been granted. For more information consult the VAT Law.
Other Consumption Taxes
Excise duties on tobacco products and petrol taxed at rates of 12% and 20%, respectively.

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

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Corporate Taxes

Company Tax
25%
Capital Gains Taxation
Capital gains (except for immovable properties,real estate, and shares) are taxed as part of taxable income and are subject to the corporate rate of 25%.
Main Allowable Deductions and Tax Credits
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 organization, 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%.

For more information, consult the Iran National Tax Administration website.

Other Corporate Taxes
Real estate tax, Transfer tax, Payroll tax, Stamp duty, Social security contributions.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Iran Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 20.0 19.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 344.0 184.0 175.0 207.0
Total Share of Taxes (% of Profit) 32.3 32.3 46.7 46.8

Source: Doing Business - Last Available Data.

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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 Credits
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.

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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%.

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Sources of Fiscal Information

Tax Authorities
Iranian National Tax Administration 
Other Domestic Resources
Information about Iran Tax system

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

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 authorized 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 organizations 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
 

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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 Service Providers.

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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 authorized 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

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Business Practices

General Information
Buzzle, Summary on business practices in Iran
kwintessential , cross cultural solutions
Opening Hours and Days
Government organizations 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
Nationalization 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
 

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Last Updates: October 2014