What taxes should be paid in Iran?
The Iranian tax system is divided into two general categories of direct and indirect taxes. Based on a survey of the Organization for Investment, Economic and Technical Assistance of Iran (“OIETAl”), the share of direct taxes from the total tax revenues is currently almost 68%.
There are two major types of direct taxes, including income taxes and property taxes. Each category of direct taxes, in turn, is divided into sub-parts. Indirect taxes include taxes on imports and Value Added Tax (VAT).
Taxes on imports are currently collected by the Iranian Customs Organization and are not within the jurisdiction of the Iranian National Tax Administration (INTA).
Direct Taxes Act of Iran changed in 2016, therefore, you need to refresh your knowledge if you worked in Iran before. There are also indirect taxes in Iran which include taxes on imports and Value Added Tax (VAT). Currently, all companies pay 25% income tax and some of them also pay 9% VAT (depending on their businesses). A company will not be subject to any other taxes on the dividends or partnership profits it may receive from the capital recipient companies. It is recommended to employ a financial advisor to avoid tax penalties.