TAX RATES > Iran Tax Rates


Iran Tax Rates

Iranian Income Tax for Natural Persons

The tax rates of the income of natural persons, except those for whom different rates have been determined in the law, are as in the income tax table below:

Annual taxable income  /  Tax %:
Rls. 0-30,000,000: 15%
Rls. 30,000,000-100,000,000: 20%
Rls. 100,000,000-250,000,000: 25%
Rls. 250,000,000-1,000,000,000: 30%
Rls. 1,000,000,000 and over: 35%.

Who is liable to pay taxes in Iran?
1. Companies and all legal entities of Iranian nationality with respect to all income earned in Iran or abroad.
2. Every natural person of Iranian nationality residing in Iran, with respect to income earned in Iran or abroad.
3. Every natural person of Iranian nationality residing abroad, with respect to all income earned in Iran.
4. Any non-Iranian natural person or legal entity with respect to income earned in Iran, as well as income accrued through the transfer of a license or right, provision of training and technical assistance, and royalties on movie films.


Iran Corporate Tax RATE

Corporate tax rate in Iran is a flat 25%.

How are corporate taxes calculated?
According to Article 105 of the Law, 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 losses and exemptions.

Tax Year in Iran
For a corporate entity the tax year is defined as an Iranian year starting from 1st of Farvardin (21st of March) and ending on the last day of Isfand (20th of March). However, in the case of legal entities with different financial year it is possible  to assume their financial year as the basis for tax assessment. The deadline for submitting the returns and accounting records is 4 months after the end of the financial year.


Value Added Tax (VAT) in Iran

The VAT rate in Iran is 1.5%

Law on the Value Added Tax was passed on 29 January 2022 to be implemented for five years on a temporary basis. According to Article 1 of the law, offer of goods and services in Iran as well as export and import are subject to the VAT law. The exemptions are foreseen in the Law. The rate of the VAT is 1.5%. For certain goods higher rates have been set. Tax payers are obliged to calculate the tax subject to the VAT law at the time of applicability of the tax and receive the same from the other transacting party.


Iran Tax Rates - Other

What is the taxation regime of foreign companies operating in Iran?
Foreign legal entities must pay taxes on all taxable income earned through investments in Iran or from direct or indirect activities (through branch offices, agencies etc.) in Iran, at the flat corporate tax rate of 25% as mentioned in Article 105 of the Direct Taxation Act. As for the assessment of taxable revenues of foreign legal entities earned by the assignment of their royalties and license and their other rights and ceding of movie films (earned as price, screening rights, or otherwise), depending on the case, the taxable corporate income shall be 20 to 40% of the total sum acquired by the entity within one tax year. The tax assessment basis for each case shall be determined and approved by the Council of Ministers. Direct tax on the income earned by foreign airlines and shipping companies through transporting passengers and cargo from Iran, is a flat corporate tax rate of 5% on all sums received from these activities in Iran, en route, or at the final destination. Foreign insurance companies which earn their profit through reinsurance, shall be subject to a tax at the rate of 2% of the premium collected and the interest accrued from their deposits in Iran. In cases where Iranian insurance companies acting in the country of origin of the foreign reinsurance company, are exempt from payment of corporate taxes on reinsurance activities, the foreign establishments shall also be exempted from payment of taxes to the Iranian government. Corporate tax for foreign contractors in Iran, active in such areas as construction and installation works and the related commissioning, transportation, designing plans for buildings and installations, topographical surveying, drawing, supervision and technical calculations, training and technical assistance, transfer of technology and other services, shall be calculated on the basis of 12% of their total annual receipts in all instances.

What type of tax incentives are there for investments and activities in the Free Trade-Industrial Zones in Iran?
According to Article 13 of the Law Concerning the Manner of Administering the Free Trade-Industrial Zones of the Islamic Republic of Iran, natural persons and legal entities economically active in such areas, are exempt from payment of direct income tax for a period of 15 years, from the date of operation as stated in their license.

Are there safeguards against being re-taxed in the Direct Taxation Act?
Iran has concluded agreements on avoidance of double taxation and tax evasion with a large number of states. The tax arrangements made in such pacts are applicable and binding under the Iranian law.

Are the activities of agents of foreign companies in Iran also subject to corporate tax?
Branches and agencies of foreign companies which have been registered according to the relevant regulations in Iran, and by virtue of their articles of association are not authorized to engage in profitable activities but can do marketing and collect economic information, are not liable to any taxation on the sums received from the mother company as a revolving fund. However, if it is proven that the said branches and agencies are engaged in profitable activities in Iran and are acquiring an income therefrom, the sums earned shall be subject to corporate taxation according to the respective rules.

What regulations define taxes on salaries of foreigners working in Iran subject to?
According to the Direct Taxation Act, every natural person residing in Iran, shall be, with certain exceptions, liable to taxation with respect to the income earned as salary in Iran or abroad. Salary of the employee (whether Iranian or foreign national) received for working in Iran, as well as the fringe benefits related to the job are liable to taxation on the basis of the progressive rates foreseen in Article 131 of the Act. Income earned in cash or in kind by any natural person in the service of another person (natural or juridical) against his working power for employment in Iran on either a period of time or piecework basis shall be liable to salary tax. According to Article 57 of the Direct Taxation Act, the total annual income of the employee shall be subject to taxation, and after deduction of the amount equal to the salary tax exemption (mentioned in Article 84 of the Act), a 10% tax rate shall apply up to the amount of Rls. 42,000,000 (forty two million rials), and for the amounts exceeding the said sum, the tax rates prescribed in Article 131 of the Act shall apply. The Iranian government may prohibit exit of the tax debtors from country. By virtue of Article 202 of the Direct Taxation Act, the persons owing more that 10,000,000 rials as tax debts are subject to such leave restriction. The Iranian or foreign managers of companies are held liable for outstanding tax debts of the related entity created during their term of office. They may also be disallowed to leave the country, unless the payment is made or an acceptable guarantee is placed.


Go to Tax Rates Home Page





Income Tax Rate

Corporate Tax Rate

Sales Tax / VAT Rate

Last Update:  2009

(This page may show previous year's tax rates. Always check last update time)

Albania Tax RatesALBANIA
Algeria Tax RatesALGERIA
Andorra Tax RatesANDORRA
Angola Tax RatesANGOLA
Anguilla Tax RatesANGUILLA
Antigua & Barbuda Tax RatesANTIGUA & BARBUDA
Argentina Tax RatesARGENTINA
Aruba Tax RatesARUBA
Australia Tax RatesAUSTRALIA
Austria Tax RatesAUSTRIA
Azerbaijan Tax RatesAZERBAIJAN
Bahamas Tax RatesBAHAMAS
Bahrain Tax RatesBAHRAIN
Bangladesh Tax RatesBANGLADESH
Barbados Tax RatesBARBADOS
Belarus Tax RatesBELARUS
Belgium Tax RatesBELGIUM
Belize Tax RatesBELIZE
Benin Tax RatesBENIN
Bermuda Tax RatesBERMUDA
Bosnia & Herzegovina Tax RatesBOSNIA & HERZEGOVINA
Botswana Tax RatesBOTSWANA
Brazil Tax RatesBRAZIL
British Virgin Islands Tax RatesBRITISH VIRGIN ISLANDS
Brunei Tax RatesBRUNEI
Bulgaria Tax RatesBULGARIA
Burkina Faso Tax RatesBURKINA FASO
Burma Tax RatesBURMA
Burundi Tax RatesBURUNDI
Cambodia Tax RatesCAMBODIA
Cameroon Tax RatesCAMEROON
Canada Tax RatesCANADA
Cape Verde Tax RatesCAPE VERDE
Cayman Islands Tax RatesCAYMAN ISLANDS
Central African Republic Tax RatesCENTRAL AFRICAN REP.
Chad Tax RatesCHAD
Chile Tax RatesCHILE
China Tax RatesCHINA
Colombia Tax RatesCOLOMBIA
Comoros Tax RatesCOMOROS
Democratic Republic of Congo Tax RatesCONGO, DEM. REPUBLIC
Republic of Congo Tax RatesCONGO, REPUBLIC OF
Cook Islands Tax RatesCOOK ISLANDS
Costa Rica Tax RatesCOSTA RICA
Cote d'Ivoire Tax Rates Ivory CoastCOTE D'IVOIRE
Croatia Tax RatesCROATIA
Cuba Tax RatesCUBA
Curaçao Tax Rates - Curacao Tax RatesCURAÇAO
Cyprus Tax RatesCYPRUS
Czech Republic Tax RatesCZECH REPUBLIC
Denmark Tax RatesDENMARK
Djibouti Tax RatesDJIBOUTI
Dominica Tax RatesDOMINICA
Dominican Republic Tax RatesDOMINICAN REPUBLIC
Ecuador Tax RatesECUADOR
Egypt Tax RatesEGYPT
El Salvador Tax RatesEL SALVADOR
Equatorial Guinea Tax RatesEQUATORIAL GUINEA
Estonia Tax RatesESTONIA
Fiji Tax RatesFIJI
Finland Tax RatesFINLAND
France Tax RatesFRANCE
French Polynesia Tax RatesFRENCH POLYNESIA
Gambia Tax RatesGAMBIA
Georgia Tax RatesGEORGIA
Germany Tax RatesGERMANY
Ghana Tax RatesGHANA
Gibraltar Tax RatesGIBRALTAR
Greece Tax RatesGREECE
Grenada Tax RatesGRENADA
Guatemala Tax RatesGUATEMALA
Guernsey Tax RatesGUERNSEY
Guyana Tax RatesGUYANA
Honduras Tax RatesHONDURAS
Hong Kong Tax RatesHONG KONG
Hungary Tax RatesHUNGARY
Iceland Tax RatesICELAND
India Tax RatesINDIA
Indonesia Tax RatesINDONESIA
Iran Tax RatesIRAN
Ireland Tax RatesIRELAND
Isle of Man Tax RatesISLE OF MAN
Israel Tax RatesISRAEL
Italy Tax RatesITALY
Ivory Coast Tax RatesIVORY COAST
Jamaica Tax RatesJAMAICA
Japan Tax RatesJAPAN
Jersey Tax RatesJERSEY
Jordan Tax RatesJORDAN
Kazakhstan Tax RatesKAZAKHSTAN
Kenya Tax RatesKENYA
Kuwait Tax RatesKUWAIT
Latvia Tax RatesLATVIA
Lebanon Tax RatesLEBANON
Lithuania Tax RatesLITHUANIA
Luxembourg Tax RatesLUXEMBOURG
Macau Tax RatesMACAU
Madagascar Tax RatesMADAGASCAR
Madeira Tax RatesMADEIRA
Malawi Tax RatesMALAWI
Malaysia Tax RatesMALAYSIA
Maldives Tax RatesMALDIVES
Malta Tax RatesMALTA
Mauritius Tax RatesMAURITIUS
Mexico Tax RatesMEXICO
Moldova Tax RatesMOLDOVA
Monaco Tax RatesMONACO
Montenegro Tax RatesMONTENEGRO
Morocco Tax RatesMOROCCO
Mozambique Tax RatesMOZAMBIQUE
Myanmar Tax RatesMYANMAR
Namibia Tax RatesNAMIBIA
Nepal Tax RatesNEPAL
Netherlands Tax RatesNETHERLANDS
Netherlands Antilles Tax RatesNETHERLANDS ANTILLES
New Zealand Tax RatesNEW ZEALAND
Nicaragua Tax RatesNICARAGUA
Nigeria Tax RatesNIGERIA
Norway Tax RatesNORWAY
Oman Tax RatesOMAN
Pakistan Tax RatesPAKISTAN
Palestine Tax RatesPALESTINE
Panama Tax RatesPANAMA
Papua New Guinea Tax RatesPAPUA NEW GUINEA
Paraguay Tax RatesPARAGUAY
Peru Tax RatesPERU
Philippines Tax RatesPHILIPPINES
Poland Tax RatesPOLAND
Portugal Tax RatesPORTUGAL
Puerto Rico Tax RatesPUERTO RICO
Qatar Tax RatesQATAR
Romania Tax RatesROMANIA
Russia Tax RatesRUSSIA
Rwanda Tax RatesRWANDA
Saudi Arabia Tax RatesSAUDI ARABIA
Senegal Tax RatesSENEGAL
Serbia Tax RatesSERBIA
Sierra Leone Tax RatesSIERRA LEONE
Singapore Tax RatesSINGAPORE
Slovakia Tax RatesSLOVAKIA
Slovenia Tax RatesSLOVENIA
South Africa Tax RatesSOUTH AFRICA
South Korea Tax RatesSOUTH KOREA
Spain Tax RatesSPAIN
Sri Lanka Tax RatesSRI LANKA
Swaziland Tax RatesSWAZILAND
Sweden Tax RatesSWEDEN
Switzerland Tax RatesSWITZERLAND
Syria Tax RatesSYRIA
Taiwan Tax RatesTAIWAN
Tanzania Tax RatesTANZANIA
Thailand Tax RatesTHAILAND
Tunisia Tax RatesTUNISIA
Turkey Tax RatesTURKEY
Turks and Caicos Tax RatesTURKS AND CAICOS
Uganda Tax RatesUGANDA
Ukraine Tax RatesUKRAINE
United Arab Emirates Tax RatesUNITED ARAB EMIRATES
UK Tax Rates United KingdomUNITED KINGDOM
US Tax Rates United StatesUNITED STATES
Uruguay Tax RatesURUGUAY
Uzbekistan Tax RatesUZBEKISTAN
Vanuatu Tax RatesVANUATU
Venezuela Tax RatesVENEZUELA
Vietnam Tax RatesVIETNAM
West Bank Tax RatesWEST BANK
Yemen Tax RatesYEMEN
Zambia Tax RatesZAMBIA
Zimbabwe Tax RatesZIMBABWE

Tax Rates
Tax Rates
Global Average Tax Rates
Historical Tax Rates
Tax News
Tax Videos
Tax Articles
IRS Tax Forms

© 2009-2012
2011 - 2012 Tax Rate Guide and Tax Help Website