About Us
Taxes in Iran
Tax Treaties
International Events
Research & Statistics
Relevant Links
Photo Gallery
Contact Us
14th ATAIC Conference
Wednesday, October 17, 2018

Special Event

9 - 13 December 2017, Tehran

Recent Events
Czech Prime Minister Proposes Bank Tax
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.
Read More
South Korea Achieved Record Tax Revenues In 2016
South Korea posted a small fiscal surplus in 2016 for a second year running, largely due to an unexpected increased in corporate tax and value-added tax revenues.
Read More
Switzerland Rejects Corporate Tax Reform
Proposed changes to Switzerlands corporate tax framework have been rejected in a referendum.
Read More
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.
Read More

Contact Now
Tel:  +98 21 3396 7446
       +98 21 3990 3723
Fax: +98 21 3396 7431
Email: m.mollanazar@tax.gov.ir
Read More

Letter of Circular on Salary Income Annual Allowance for 1395 (2016)

Reg. No.: 200/95/19

Reg. Date: June 15, 2016-06-20


Taking into consideration the provisions of Paragraph (A) under Note (6) of the 1395 [2016] State Public Budget Law whereby a ceiling of IRR 156,000,000 has been determined as the “basic annual income allowance” of 1395 [2016] pursuant to the provisions of Article (84) of the Direct Taxes Act approved on February 22, 1988 and its subsequent amendments, and since on the strength of Article (85) of the amendments to the Direct Taxes Act approved on July 22, 2015, the salary income of employees of both public and private sectors, exceeding the basic annual income allowance shall be subject to tax at an annual rate of 10% up to an amount seven times the annual allowance, but the amounts in excess shall be subject to a tax rate of 20%; therefore, public or private sector employers making salary payments to their employees shall be obliged in the year 1395 (i.e. March 20, 2016 – March 20, 2017), as per the provisions of Article (86) of the Direct Taxes Act, to withhold the salary income tax of their employees with due regards to the regulations envisaged under Article (85) of the aforementioned Act and to pay the same, up to the end of the next subsequent month, to the local Tax Affairs Office, observing any other relevant legal obligations.

It is hereby noted also that by virtue of the letter of circular No. 200/95/1 dated April 6, 2016, it was provisioned that the salary income tax of the first two months of the year 1395 be withheld and remitted as an on account tax on the basis of the annual income allowance of 1394 (2015); so, the employers shall be required to make final adjustments in the salary income taxes of the aforementioned two-month period in the next subsequent month(s).


Signed by:  Seyed Kamel Taghavi Nejad

President of Iranian National Tax Administration 

Related Pages
A Summary of the Address Instruction on the Issuance of Invoices Pursuant to Article 19 of the VAT Act
Administrative By-Law of Article (107) of the Amended Direct Taxes Act
Administrative By-Law of Note (3) under Article (169) of Amended Direct Taxes Act approved on July 22, 2015
Allow ability of the Interests Paid for the Issuance and Sale of Cooperation Bonds
Bylaw of Paragraph (14) under Article (12) of the VAT Act
Currency Exchange for the Taxpayers with Foreign-Currency Transactions and Foreign-Currency Debts
Extension of the Rule of Note (2) under Article (119) of the Fifth Five-Year Development Plan of I.R.I to Those Entitled to the Tax Exemption Provided in Art. (13) of Law for the Management of Free Trade/Industrial Zones
Letter of Circular regarding the Tax Exemption in Free Trade/Industrial Zones
New Directive Regarding the Prevention from the Exit from the Country
Procedure for the VAT Treatment of Chain Store Companies
Procedure on How to Apply the VAT and Excise Duties in Free Industrial/Trade and Special Economic Zones
Resolutions Made by the Tax Supreme Council regarding Tax Exemption in Free Zones
Resolving Obscurities regarding the Procedure on How to Apply the VAT and Excise Duties in Free Industrial/Trade and Special Economic Zones
Some Provisions Related to Article (197) of the Direct Taxes Act
Starting Point of Calculating the Fines Pursuant to Article (190) of Direct Taxes Act on Understated Incomes (Adjusted Tax)
Supreme Tax Council Opinions on the Obligations of Foreign Companies, Mordad 20, 1397
Tax-Related Provisions of 1395 (2016) Annual State Public Budget
Tax-related Provisions of State Budget Law of 2018
Tax-related provisions of the Law for Removing Obstacles to Competitive Production and Promoting the Country's Financial System
The Exemption of the Profits Derived from Currency Exchange in the Economic Activities Carried Out in Trade/Industrial Free Zones
The Resolution No.: 30/4-5586 Date: June 12, 1995 (issued by the Plenary Board of the Supreme Tax Council on the Tax Exemption of Free Zones)
Home  ||   News  ||   Contact Us
Check site in another language: English