Law & Regulation Incentives
- No restriction on the percentage of foreign shareholding
- The possibility of registering an Iranian company with 100% foreign capital
- Transfer of principal capital, dividend and the profits gained through the utilization of capital in the form of foreign currency or goods.
- Enjoyment of same and equal treatment as accorded to domestic investors by foreign investors
- The possibility of investment by foreign natural and juridical person and Iranians living abroad
- Allowing investing in all areas which are permitted to the private sector.
- Granting protection coverage to all foreign investment schemes.
- Quick approval of the foreign investment application
- Issuing a three-year residence license for foreign investors, directors, experts as well as their immediate family members
- Expropriation and nationalization
- Unlimited transfer of capital and dividend
- Guarantee of the purchase of the goods and services resulting from investment projects in BOT investment schemes where the government acts as the sole purchaser.
- Production Line Machineries and Equipment Provided that to be new & not been made in Iran
- Raw Materials used for production of Export commodities
- All Production Line Machineries and Raw Materials in Free Zones
- Factories’ Imported components are used for domestic goods manufacturing are exempted from 20% customs duties, provided that they have not made in Iran by recognition of Ministry of Industries, Mine and Trade.
- Knowledge-based companies and institutions are exempted from custom duties’ payment, commercial benefit tax and export duties.
- According to Article 105 related to “Direct Taxes Rules”, Taxable incomes of knowledge-based companies and institutions resulting from the contracts, research and development activities, commercialization and knowledge-based products and services are exempted from paying taxes for 20 years.
- In companies with more than 50 employees: in case of increasing the employment volume up to 50% in comparison to last year, one-year exemption can be added to the duration of exemptions (mentioned in previous slide)
- In the case that foreign companies with reliable Brand produce goods using production capacity of Iranian companies and export at least 20% of total production, can enjoy 50% on Tax Rate for the income from sales of products (12.5 % instead of 25%) after the end of above duration
Fixed corporate income tax at a flat rate of 25%
Income tax with Rate of 0%
Other tax incentives
-Total taxable income <= registered capital 50% of income is free of tax
-In less developed areas, total taxable income capital <= double of registered capital 100% of income is free of tax
-In case of each 5% foreign investment, 10% will be added to these 2 incentives, maximum up to 50%
Incentives for investment in Special Economic Zones
- Import of goods from the above mentioned zones for domestic consumption would be subordinate to export and import regulations, and export of goods from these areas will
be carried out without any formalities.
• Import of goods from abroad or free trade zones or industrial area-would be carried out with
minimal customs formalities and good internal transit cases would be performed in accordance with the relevant regulations.
• Log entry of merchandise subject to this article will be done without any customs formalities.
• Goods imported from outside or industrial areas or other commercial zones can be exported without any formalities of the country.
• Management of the region is allowed to assign the region to qualified natural or legal persons
after classification and valuation.
• Owners of goods imported to the region can send all or part of their goods for temporary entry
in to the country after doing customs clearance regulations.
• If the processing of imported goods is to some extent that changes the tariff of goods, the rate
commercial benefit of the goods would be calculated equal the commercial benefit of raw materials and spare parts of the country.
• Importers of goods are allowed to hand over to others part or all of their products against warehouse receipt to be issued by the district administration, in this case the breakdown warehouse receipt holder would be the owner of the goods.
• The management of each district is authorized to issue certificated of origin for goods per applicant out of the area with the approval of the customs.
• All the goods imported to the region for the required production or services are exempted from
the general import-export laws. Imports of goods to other parts of the country will be subordinated to export and import regulations.
• Percentage of goods produced in the zone, based on paragraph (d) of clause (25) of the law of
the second economic, social and cultural development plan of the Islamic republic of Iran imported to the country, the proportion of total value added and domestic parts and materials used in the total price of the commodity production is allowed without any limitation and in addition to not having to order and open letter of credit.
• Goods manufactured in special economic zones, as well as raw materials and imported CKD parts into the country is not subject to price regulation due to unutilized resources and allocated currency.
The list of the special economic zones of the Islamic Republic of Iran are as follows :
1-Salafchegan special economic zone
2-Shiraz special economic zone
3-Assaluye special economic zone
4-Arge Jadid special economic zone
5-Payam Airport special economic zone
6-Persian Gulf special economic zone
7-Lorestan special economic zone
8-Amirabad port special economic zone
9-Bushehr Port special economic zone
10-Shahid Rajaee Port special economic zone
11-Sarakhs special economic zone
12-Sirjan special economic zone
13-Yazd special economic zone
14-Bushehr special economic zone
Incentives and advantages for investment in Trade-Industrial Free Zones
1-Tax exemption for 20 years from the date of operation for all economic activities
2-Foreign investment and nearly a hundred percent of the amount invested.
3- Freedom of entry and exit of capital and profits
4- Protection and guarantees for foreign investments.
5- Abolition of entry visas and easily issue of residence permits for foreigners.
6- Facilitated regulation on labor relations, employment and social security.
7- Transfer of part manufactured goods to the mainland without paying customs duties.
8- Elimination of pay customs duties on imports from outside to the region and vice versa.
9- Employing trained and skilled manpower in all different skill levels and professions.
10- Utilization of raw materials, oil and gas as feedstock and fuel for all industrial activities.
The list of the Trade-Industrial Free Zones of the Islamic Republic of Iran are as follows :
1-Qeshm Trade-Industrial Free Zone
2-Chabahar Trade-Industrial Free Zone
3-Aras Trade-Industrial Free Zone
4-Anzali Trade-Industrial Free Zone
5-Arvand Trade-Industrial Free Zone
6-Kish Trade-Industrial Free Zone
7-Maku Trade-Industrial Free Zone
- Take advantage from local currency facilities of the National Development Fund
- The partnership possibility of development organizations (Iran Industrial Development and Renovation Organization, Iranian Mines and Mining Industries Development and Renovation Organization) in implementation of investment projects in less developed regions.
- The possibility of establishing new industries in estates industries areas with restrictions of the establishment of industries (120 kilometers distance from Tehran and 50 km and 30 km distance from the centers of some provinces)
- Government’s guarantee for foreign investment while political risks emerges.
- Foreign investments have benefited from all rights, protections, and similar facilities to local investors.
- Guarantee importation and exportation of original interest and installment of investors’ financial facilities.
- Freedom of export commodities produced by financial corporation with participation of foreign investors.
- Possibility of temporary importation without customs duties payment for export commodity processing.
- Awards and export subsidies (the costs of participating in fairs and marketing).
- Export commodities exemption from paying all type of duties.
- Possibility of foreign investment for private sector activity in all permitted areas in Iran.
- No restrictions in investment volume and the percentage of partnership.
- Free import of machinery and raw materials to free industrial trade zones and special economic zones (except passenger cars and recreational boats).