Iran

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The Law Amending Certain Articles of the Law of Direct Taxation which was passed by the Iranian Majlis (parliament) on 16 February 2002, came into force on the first day of the current Iranian year of 1381 (starting 21 March 2002).
All companies with their fiscal year starting 21 March 2002 will be subject to the new tax rates and stipulations.
The total income of companies and other legal entities, earned from their profitable activities in Iran or abroad, shall be subject to a flat rate of 25% after deduction of the losses and exemptions.

   
Tax rate on long-term capital gains Capital gains are taxed in Iran.
   
   
Tax rate on branches Foreign legal entities must pay taxes on all taxable income earned through investments in Iran or from direct or indirect (through agents, branch offices, etc) activities in Iran, at the flat rate of 25% as mentioned in Article 47 of the amendment law.




Income tax

Fiscal year The fiscal year begins on March 21st and ends on March 20th of the next year.
   
Income tax rate
Annual taxable income
Rate
< 30 000 000 IRR
15%
30 000 000 - 100 000 000 IRR
20%
100 000 000 - 250 000 000 IRR
25%
250 000 000 - 1000 000 000 IRR
30%
> 1000 000 000 IRR
35%
   


Other important taxes


Name of tax
Rate
Municipal tax  
3%  


 

Accounting

Introduction
The American and English accounting models have been adopted in Iran because of the absence of accounting tradition in the country. Because Iran did not know how to implement an accounting plan which would fill the necessities, the Occidental accounting procedures dominate. The application of the Anglo-Saxon accounting model requires nevertheless certain adaptations.


Certification and auditing
The accounting profession is not particularly organized in Iran. However, the influence of the foreign accounting practices implies an evolution and a relation between the Iranian accountants training and the American one. Thus, an increasing number of accountants and Iranian auditors receives an American training and apply it in Iran. This will contribute to strengthen the harmonization of Iranian book-keeping systems with international standards.

Professionals and representative organizations
"The Iranian Institute of Certified Accountants".



Useful links
For further information, please contact Iran Export or the Iran Chamber of Commerce, Industries and Mines.

Last modified in 2006 - ongoing update
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