Iran taxes resident individuals and companies on worldwide income and non-residents on Iran-source income, administered by the Iranian National Tax Administration (INTA) under the Direct Taxation Act. The standard corporate rate is a flat 25%, with agricultural income exempt and manufacturing companies eligible for reduced rates.
The Iranian tax year follows the Solar Hijri calendar and ends March 20; both individual and corporate tax filings are generally due by 31 July (Tir 31), four months after fiscal year-end.
25% standard flat rate; agricultural income is exempt and manufacturing companies may access reduced rates.
Progressive, 0% to 35% across income bands, with a substantial annual exemption (approximately IRR 720 million).
9% standard (recent budget reforms have pushed some sources to report a rate closer to 10%); essential goods, healthcare, and education are exempt.
Resident individuals are taxed on worldwide income; non-residents are taxed on Iran-source income, administered by the Iranian National Tax Administration (INTA). An individual is Iranian tax resident with a permanent residence in Iran, or if present in Iran for more than 183 days (not necessarily consecutive) within the Iranian tax year (March 21 to March 20 of the following year, per the Solar Hijri calendar).
Under Article 105 of the Direct Taxation Act, a branch of a foreign company registered in Iran is taxed only on profits derived from work carried out inside the country, at the standard 25% corporate rate. A marketing/representative office confined to gathering economic data or information for its foreign holding company, without authority to conclude transactions in Iran, is not liable to Iranian income tax - functionally similar to the auxiliary-activity exclusions found in a standard OECD Model PE article, though Iran's domestic law does not codify a single numbered PE article in the OECD Model's format.
No CFC-style attribution provision was found in Iran's Direct Taxation Act despite genuine search effort. Iran's international economic isolation under extensive US and other sanctions regimes has limited the depth of internationally-available primary-source and secondary-compilation coverage of its tax code's more technical anti-avoidance provisions. This should be treated as "no CFC provision found in the sources reviewed" rather than an absolute guarantee, and confirmed directly with an Iran-qualified adviser before being relied upon for a specific structure.
No statutory thin capitalization ratio is identified in available sources.
Iran classifies entities under its own domestic Direct Taxation Act rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified, consistent with no CFC-style attribution provision being found in Iran's Direct Taxation Act despite genuine search effort, as described elsewhere on this page; Iran's international economic isolation under extensive sanctions regimes has limited the depth of internationally-available coverage of its tax code's more technical anti-avoidance provisions.
No domestic FBAR-equivalent regime requires Iranian residents to separately disclose foreign financial accounts, and Iran is not a CRS participating jurisdiction, consistent with its exclusion from most international financial cooperation frameworks under extensive sanctions regimes. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Iran's own rules, and should independently confirm any US sanctions restrictions on Iran-related financial dealings before relying on this page for a specific transaction.
A dedicated participation exemption regime for dividends or capital gains from a qualifying subsidiary is not confirmed in available primary sources; confirm current treatment directly with an Iran-qualified adviser before relying on this page, consistent with the same sanctions-driven documentation limitations noted elsewhere on this page.
Relief from double taxation in Iran is available primarily through Iran's treaty network (see Treaty Network below) rather than a standalone general unilateral foreign tax credit provision; a broader unilateral credit mechanism outside the treaty network is not confirmed in available primary sources. 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.
Iran has approximately 45 double taxation agreements. 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.