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14th ATAIC Conference
Date
Saturday, November 18, 2017

Special Event

9 - 13 December 2017, Tehran


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The ruling Czech Social Democratic Party, led by Prime Minister Bohuslav Sobotka, will introduce a special tax on the countrys banks if it wins elections scheduled for later this year.
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Proposed changes to Switzerlands corporate tax framework have been rejected in a referendum.
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UAE Confirms Details For VAT From January 2018
The UAE has provided more details on plans to introduce VAT at a rate of 5 percent across the other Gulf Co-operation Council (GCC) member states on January 1, 2018.
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Email: m.mollanazar@tax.gov.ir
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Are there any incentives in the Iranian tax system?

An exemption is granted to manufacturing and mining companies to which exploitation licenses have been issued or with whom extraction and sale contracts have been concluded after 21 March 2002 by the relevant government ministries.

The tax exemption applies to 80% of the income and is granted for a period of 4 years – if the operations are carried out outside a perimeter of 120 km of Tehran, 50 km of Isfahan, or 30 km of provincial capitals or cities with a population of more than 300,000 (except for industrial cities) – starting from the date on which the exploitation or extraction commenced. For units situated in less-developed regions, the exemption shall apply to 100% of the income for a 20–year period (articles 132 of the Direct Taxes Act and 159 of the 5th I.R.I. Development Plan Act).
The requirement to be located outside the above perimeters of certain cities does not apply to companies manufacturing Information Technology (IT) products.

Profits derived from industrial and mining activities, allocated for the purpose of reconstruction, development, or completion of their existing industrial and mining units, or for establishing new industrial and mining units, shall be exempt for 65% of the applicable tax, provided that the permission for such development, completion, or establishment of industrial and mining units is obtained from the respective ministry.
If the expenses incurred in each year for implementation of a specific project exceed the declared profit of the same year, or if they are less than the cost of the investing project, the company can benefit from the said exemption, up to the aforesaid excess or the balance of the cost of the full implementation of the project for the subsequent three years at maximum. 

If the factories that are located within the watershed basin of Tehran and their employees are not less than 50, move their total installations outside a 120-kilometer radius of the centre of Tehran, then they shall be exempt - in view of the criteria to be determined by the Ministry of Economic Affairs and Finance and the respective ministry, as the case may require - from the Income Tax on their relevant industrial activities for 10 years, beginning from the date of start of exploitation in such new location. 

The factories located within the 120 km radius of Tehran and the territories under the jurisdiction of the great cities (Mashad, Tabriz, Ahvaz, Arak, Shiraz and Isfahan), which totally transfer their installations to the approved Industrial Towns, shall be subject to 5 years of tax exemption as of the date of the start of exploitation in the new place.

Companies that are registered and licensed to operate in any of free-trade zones (including Kish Island, Qeshm Island, Chabahar, Jolfa , Bandar Anzali, Abadan and Khorramshahr) are exempt from corporate tax for 20 years on income derived from their activity in the free-trade zone. Income derived from operations carried out outside the free-trade zones is taxable

Related Pages
Frequently Asked Questions on VAT in Iran
How can I make an objection against my tax?
How can I receive a tax refund?
How do foreign companies income taxes are calculated (Article 107 of direct taxation act)?
How taxes are to be paid in Iran?
Top FAQs
What are taxpayers obligations for filing their tax returns?
What are the income tax rates for real persons under the Direct Taxation Act?
What are the taxing conditions in Iran’s Free Trade - industrial zones?
What kind of tax fines or sanctions may be applied?
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