1-Special incentives to invest
The freedom to export goods produced by the investee firm is guaranteed
Transfer of the principal capital profit & capital gains derived from utilization of capital shall be effected in the form of foreign currency
Foreign capital is guaranteed against nationalization & expropriation
The volume of foreign investment in each individual case shall not be subject to any limitation
Import of foreign capital being cash or noncash, is only subject to the investment license
Enjoy the same treatment as accorded to domestic investors
There is no restriction on the percentage of foreign shareholding
In cases where the foreign investment results in the establishment of an Iranian company the ownership of land in the name of the company is permitted at a size appropriate to the investment project at the discretion of the organization.
If disputes arising between the Government & the foreign investors not settled through negotiations shall be referred to domestic courts, unless the law ratifying the Bilateral investment agreement with the respective government of the foreign investors provides for another method for settlement of disputes.
The freedom to export goods produced by the investee firm is guaranteed & in the event of any prohibition on the export the goods produced may by sold in the domestic market & proceeds of sale shall be transferable aboard in the form of foreign currency through the Countries Official Monetary Network.
The foreign exchanging earning from the exports of foreign investment, within the limits prescribed by the board is exempt from any regulation restricting export and from foreign exchange regulations such as commitments for reintroducing the export earnings to the country pursuant to the current & future governmental regulations.
In the event of a legal restriction & restriction prescribed by the government as a result of which the investee firms can not export their products, firms are authorized to sell their products in the domestic market. And by providing the Rial equivalent of the foreign exchange requirements specified in the investment license to purchase the required foreign exchange from the banking system & transfer the same or to export authorized goods.
Visas, work permits and residence of three years for investors, managers, foreign experts and their immediate family members
2-Banking incentives
Interest and annual fees of the credit facilities granted relief funds managed by private and cooperative sectors to support the VC and new industries
3-Customs incentives
Exemption and obtained impose customs duties on the basis of preferential tariffs, contained in the trade agreements with foreign countries
Discount 15% of the customs value of goods, of Trading profit of imported goods from free industrial zones
Refund of duties on imported raw materials and equipment used in the manufacture of export goods
Clearance by obtaining a bank guarantee
The freedom to export goods produced by the investee firm is guaranteed & in the event of any prohibition on the export the goods produced may by sold in the domestic market & proceeds of sale shall be transferable aboard in the form of foreign currency through the Countries Official Monetary Network.
4-Infrastructure incentives
Receiving the price of the right to exploit the land by of 30% in cash and 70% in installments
The possibility of forgiveness of parts of the installments in accordance with the organization conditions
The possibility of impawning the contract booklets for allocation of land to obtain bank loans
Usufruct Price of facilities in industrial parks is received under the supervision of Board of Directors for 30% in cash and 70% in installments which include following
discounts, by the decision of the Board of Directors and the special circumstances :
Forgiveness of some parts of the usufruct price of utilities for the units that pay The right to exploit in cash and at once.
Forgiveness of some parts of the usufruct price of utilities for the units that receive the work completed within 12 months.
Forgiveness of some parts of the usufruct price of utilities for the units that are exploited within 12 to 18 months.
Enjoying banking facilities to equip, develop and complete the industrial units of the memorandums of understanding concluded between the banks and the small industries.
5-Insurance incentives
Exemption all crafts workshops from payment of the employer's insurance
Supply part of the premium or discount applied echelon of employers in order to employ new work force
Exemption from payment of the employer's insurance contribution (max 5 workers)
Expand insurance coverage of agricultural output and factors by at least 50%
6-Taxation incentives
Tax exemption in agriculture fields.
The income from producing and mining activities, which is derived and declared by producing and mining of non- governmental legal entities at producing or mining enterprises for whom extraction and sale contracts are concluded, by relevant ministries as of date of execution of this Article, as well as service incomes of hospitals, hotels and tourism accommodation centers of the said individuals for whom exploitation licenses are issued as of the mentioned ate shall be exempt from the tax for a term of 5 years from the date of exploitation, extraction or activity. As regards the less developed regions, the tax rate of zero (0%) shall be applied for a period of ten (10) years.
A. The tax rate of zero (0%) is a method in which the taxpayers are bound to submit tax return, legal books, accounting documents (where applicable) for their incomes as provided for in this law in due time to National Tax Administration Organization. The said Organization shall study the relevant tax returns and determining taxable income based on documents and those tax returns and after determining taxable income of the taxpayers their tax shall be calculated on zero (0%) rate.
H. In case that the investment subject of this Article made by the partnership of foreign investors and by obtaining license from Iran Investment and Economic and Technical Aids, in exchange for each 5% of foreign partnership and investment the sum equal to 10% shall be added to tax encouragement of this Article in proportion to the registered and paid capital and maximum to 50%.
I. The foreign companies produced high quality products with prestigious brands in Iran by using capacity of domestic enterprises provided that export minimum 20% of their products as of date of signing contract with Iranian enterprises shall be enjoy 100% tax exemption at tax computation term
J. The tax rate of zero and encouragement of this Article shall not apply to the income of producing and mining entities established within a 120KM radius from the center of Tehran or within 50KM radius from the center of Isfahan and within a 30KM radius from the administrative centers of provinces and cities with a population exceeding 300,000, according to the latest census.
Information Technology (IT) Manufacturing Units, with the confirmation of the relevant Ministries and Deputy Office of the president for Scientific and Technology Affairs in any condition , shall enjoy the privileges of this Article. Also the tax of producing and mining enterprises within all Special Economic Zones and industrial parks except the Special Economic Zones and industrial parks within the 120KM radius from Center of Tehran province shall be calculated on tax rate of zero and enjoy tax encouragement.
L. All enterprises for internal and international tourism that hold exploitation permit from the related authorities before execution of this Article shall enjoy an annual exemption with regard to 50% of their applicable taxes for a term of 6 years after forcing of this Article. The provisions of this Article shall not be applicable regarding the income resulted from dispatching tourists to foreign countries.
M. The 100% of income declared by tourism and pilgrimage agencies having license from the concerned legal authorities that collected from absorbing foreign tourists or dispatching pilgrims to Saudi Arabia, Iraq or Syria shall be calculated on tax rate of zero.
O. The research costs of private legal entities and cooperatives in producing and industrial enterprises hold exploitation license from concerned ministries that cooperate with universities, research centers and higher education institutions having finalized license from Ministry of Science, Research and Technology and Ministry of Health and Medical Education made in the scope of Iran Scientific Comprehensive Drawing shall be exempted of tax payment maximum equal to 10% of tax declared, provided that the annual progress report approved by universities research council and/or the concerned research centers and that the gross declared income arising from producing and mining activities shall not be less than 5,000,000,000. The equal sum deposited to tax account of the said individuals shall not be accepted as tax expenses.
The individuals provide cash money for financing project- plan and revolving capital of producing enterprises in partnership agreements shall enjoy of tax on income exemption the sum equal to at least the expected profit rate in partnership agreements approved by the Money & Credit Council and for payer of profit the equal of said paid profit rate shall be considered as acceptable tax expenses.
100% of the income derived from exportation of non-oil services and goods and agricultural products and 20% of income derived from exportation of taxable raw materials shall be calculated on tax rate of zero (0%). 100% of the income derived from exportation of different goods that have been, or will be, imported to Iran on transit, and are exported without making any changes in the substance thereof or doing any works on them, shall be calculated on tax rate of zero (0%).
All craft workshops exemption from taxation
10% of the tax on income derived from the selling of commodities accepted and sold in the Commodity Stock, and 10% of the tax on income of companies listed in the domestic or foreign stock exchanges, and 5% of the tax on profits of companies listed for OTC transactions of domestic or foreign stock exchanges, shall be rebated after the approval of the Stock Exchange Organization as of the year of enlistment until the year hey are unlisted from the stock exchange. The abovementioned exemptions shall be doubled for companies listed in the domestic or foreign stock exchanges or OTC markets of domestic or foreign stock exchanges, provided that at the end of the fiscal period, and based upon the approval of the Stock Exchange Organization, they have at least 20% of free floating shares.
