Middle East

Iran

Corporate rate
25%
Top personal rate
35%
VAT / GST rate
9%
One-sentence summary Iran's corporate tax position: 25% standard flat rate; agricultural income is exempt and manufacturing companies may access reduced rates. Personal income tax: Progressive, 0% to 35% across income bands, with a substantial annual exemption (approximately IRR 720 million). VAT/consumption tax: 9% standard (recent budget reforms have pushed some sources to report a rate closer to 10%); essential goods, healthcare, and education are exempt.

Corporate Tax Rate

25% standard flat rate; agricultural income is exempt and manufacturing companies may access reduced rates.

Personal Tax Rate

Progressive, 0% to 35% across income bands, with a substantial annual exemption (approximately IRR 720 million).

VAT / GST Rate

9% standard (recent budget reforms have pushed some sources to report a rate closer to 10%); essential goods, healthcare, and education are exempt.

Residency

Resident individuals are taxed on worldwide income; non-residents are taxed on Iran-source income, administered by the Iranian National Tax Administration (INTA), confirmed via TaxAtlas. A specific day-count residency threshold was not itemized in sources reviewed this session.

CFC (Controlled Foreign Company) Rules: Not identified

No Controlled Foreign Company regime was identified in available sources this session. This is a genuine gap rather than a confirmed absence.

Thin Capitalization

No statutory thin capitalization ratio was identified in available sources this session.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Iran residents to self-report their own foreign accounts was identified. Institutional-level CRS/FATCA participation is significantly constrained by ongoing international sanctions affecting Iran's financial sector and its ability to participate in standard international information-exchange frameworks. Separately and independently of Iranian law, US citizens and Green Card holders with any Iran-connected financial accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938 - though US sanctions and OFAC restrictions independently and severely limit or prohibit most US-person financial dealings with Iran in the first place, a separate and more immediately consequential legal constraint than the tax filing question itself.

Treaty Network

Iran has approximately 45 double taxation agreements, confirmed via TaxAtlas, though a specific named-partner list was not compiled this session. International sanctions have significantly affected Iran's practical international tax cooperation and the operative scope of some treaty relationships, separate from their formal legal status.

Sources: TaxAtlas - Iran Tax Rates and System (2026), TaxAtlas - Iran VAT / Sales Tax Rates (2026). Note: a lower-quality VAT-rate aggregator cites a conflicting 10% figure (and is internally inconsistent with its own separate summary page citing 9%) - TaxAtlas's consistent 9% figure across three separate, internally-agreeing pages is preferred here. Page last verified: August 08, 2026. General information only - confirm current rates with a licensed advisor in this jurisdiction before relying on this page.