>

Benefits and incentives

Foreign Investment Promotion and Protection Act‌
Features and Facilities of the Law
  • No restrictions on the volume and percentage of foreign investment participation
  • Possibility to register Iranian company with 100% foreign capital
  • Transfer of capital, capital gains and benefits from the use of capital in foreign exchange or commodities
  • Foreign investors have the same and equal treatment with domestic investors
  • Possibility of investing for foreign persons and Iranians residing abroad
  • Possibility to invest in all areas allowed for the private sector
  • Providing supportive coverage to all foreign investment methods
  • The short and fast process of accepting and approving a foreign investment request
  • Issuing a three-year residence permit for investors, executives, foreign experts and their first-degree relativesRisks covered by law
  • Expropriation and nationalization
  • The transfer of the principle of capital and the profits from it indefinitely
  • Guarantee the purchase of goods and services produced in foreign investment projects by BOT method if the sole buyer is the government..
Tax exemptions
1. Agricultural Exemption
Proceeds from all agricultural activities, livestock, livestock, fish and bee keeping, and poultry and fishing, ranching, reforestation, hunting gardens of all kinds, and palm trees are exempt from tax. All individuals, both legal and non-Iranian (Iranian and non-Iranian), can benefit from the exemption from this activity.
2. Exemption of rights
Fifty percent (50%) of the payroll tax for employees in less developed areas is distributed according to the Country Planning and Management Organization's list.
All natural persons (both Iranian and non-Iranian) working in less developed areas according to the Organization and Management and Planning List of the country may benefit from such forgiveness as long as their place of employment is on the list.
3. Exemption from training, service and sports activities
Proceeds from the education of nonprofit schools, including elementary, middle, high school, technical and vocational, universities and nonprofit higher education institutions, and the income of mentally retarded persons who are subject to activity licenses, Income from clubs and sports establishments licensed by the Physical Education Organization derived from exclusively sporting activities shall be exempt from taxation.
4. Exemption from cultural activities
Publishing, press, cultural and artistic activities carried out under the license of the Ministry of Culture and Islamic Guidance shall be exempt from taxation.
All natural and legal persons (both Iranian and non-Iranian), subject to the provisions and by-laws of note 3 of the said Article, may enjoy the exemptions in question.
5. Cooperative exemptions
A: One hundred percent of the income from the export of non-oil services and goods and agricultural products and twenty percent of the income from the export of raw materials are taxed
6. Export Exemption
A: One hundred percent of the income from the export of non-oil services and goods and agricultural products and twenty percent of the income from the export of raw materials are taxed at zero rate.
(B) One hundred percent of the export proceeds of various goods imported into or exported in transit to Iran without any change in nature or by doing something on it shall be exempt from tax.
7. Exemption for handicraft products
Proceeds from handmade carpets and handicrafts, cooperatives and manufacturing unions shall be exempt from taxation.
All natural and legal persons (both Iranian and non-Iranian) may be subject to exemptions subject to regulations.

8. Exemption for manufacturing, mining and tourism activities
 
period Income tax at zero  percent exemption
5 years Industrial & Mining & Services (Hospitals & Hotels) & Tourism Residence Centers
7 Years Industrial & Mining & Services (Hospitals & Hotels) & Tourism Accommodation Centers Located in All Special Economic Zones and Industrial Settlements in Mainland                  
10 Years Industrial & Mining & Services (Hospitals & Hotels) & Tourism Residence Centers in Less Developed Areas
13 Years Industrial & Mining & Services (Hospitals & Hotels) & Tourism Residence Centers Based in All Special Economic Zones and Industrial Settlements in Less Developed Areas
always 100% of income from all agricultural activities
always              100% of revenues from exports of non-oil services and goods and agricultural products and
  • Companies with more than 50 employees, if they increase their workforce by at least 50% each year during the period of exemption, to one year per year their tax deduction is added.
  • Foreign companies that make use of the capacity of domestically produced units in Iran to produce authentic badge products if they export at least 20% of the manufactured products, after completing the tax exemption period listed in the table, a 50% discount on the tax rate They have a stated income from the sale of manufactured products (12.5% ​​instead of 25% income tax rate).

Customs exemptions

Exemptions from machinery and equipment for production line exemption from customs duties (primary machinery) Exemption of customs duties and duties paid for the import of raw materials used for the production of export duties.

Tax facilities and incentives to invest in free and industrial zones

 

  1. 20 years tax exemption for any kind of economic activity
  2. No visa requirement for foreigners
  3. No restrictions on currency transfer
  4. Flexible monetary and banking services
  5. Exemption from customs duties on imports of raw materials and industrial machinery from production units
  6. Easy registration of companies, industry, cultural and intellectual property
  7. Simple procedures for re-exporting and transit of goods
  8. Easy rules for entry of authorized goods
  9. The possibility of exporting manufactured goods to the mainland within a value-added system