Eliminating tax exemption in free zones not on agenda

The secretary of Iranian Free Zones High Council said eliminating tax exemptions in the country’s free zones is not on the agenda of any official government or legislative bodies, IRNA reported.

Mentioning recent comments by some government officials about changing the regulations regarding the tax exemptions in free zones, Morteza Bank said, “In the country’s law regarding the free trade zones, a 20-year period has been provisioned for the current tax exemptions.”

For many years, Iran’s free and special economic zones have provided various incentives to attract investors, one of which is tax exemption. This issue has recently been criticized by some government officials and some are demanding elimination of such exemptions.

“Taxation is a central issue in free zones. One of the most important elements of free zones is tax exemptions and customs fee exemptions, and this is the case not only in Iran but throughout the world,” Bank said.

Earlier on Sunday, Iran’s deputy finance and economic affairs minister announced that his ministry is planning on amending the regulations pertaining to tax exemptions in the country’s free economic zones.

Mentioning the criticism facing the tax exemptions in free zones regarding their ineffectiveness, Mohammad-Ali Dehqan Dehnavi noted that supporting the country’s free zones as gateways to development of trade is important, however considering the abuses that are resulted from such support, it seems that some amendment is in order.

“The solution is to reform the current path; it can include removing exemptions altogether or regulating and monitoring them,” he said adding that “Iranian National Tax Administration (INTA) is just needed to be provided with sufficient information on economic activities in the mentioned zones [to make the necessary decision].” 

According to Dehnavi, the country’s free zones are currently in charge of their economic information, and the Tax Administration has no authority in this regard.

“If this information is made available to the tax office [INTA], it will certainly help prevent tax evasion,” he said, adding “If all the country’s economic information could be collected into one comprehensive database in the form of a tax plan, we would surely see good results.”

News No: 6918
Date: 2019/10/21 - 21:54
News Source: Tehran Times

free zones  INTA  National Tax Administration  tax 


Leave a Comment:


Swiss Gov't Approves Changes to Iran DTA

The Swiss Federal Council adopted a dispatch on a protocol to the double tax agreement (DTA) with Iran on Oct. 23, which implements the minimum standards for such agreements.

Budget bill to include development, employment, subsidy plans

Head of Iran’s Planning and Budget Organization (PBO) said that three biennial plans on development, subsidies and employment will be attached to the national budget bill for the next Iranian calendar year of 1399 (begins on March 20, 2020) to be submitted to the parliament.

CGT bill to be submitted to cabinet in a week

Capital gains tax (CGT) bill will be submitted to the cabinet by the end of the current Iranian calendar month of Mehr (October 22), or at most in the first half of the next calendar month of Aban, Iranian deputy finance and economic affairs minister told Mehr news agency on Wednesday.

Industry ministry to amend tax exemption regulations for free zones

Iran’s Deputy Finance and Economic Affairs Minister said the ministry is planning on amending the regulations pertain to tax exemptions in the country’s free economic zones

Australia backs solar farm for two Fortescue iron ore mines

The Australian government said on Friday that it will provide more than half the funds for a A$200 million ($136.60 million) solar farm being built by Alinta Energy to help power two iron ore mines in Western Australia’s remote Pilbara region.

India: Ferro Silicon Prices Maintained Despite Improving Demand

Ferro Silicon prices moved down in Bhutan despite improving demand. Producers are cutting down prices to entice buyers. However, the demand remains scattered, a few producers are enjoying good demand whereas others are reducing prices and hence, the overall prices are getting affected. Producers in Bhutan were undercutting prices since last week and now the producers have reduced their offer prices as they are facing a cash crunch in the month-end. Many producers are low in inventory.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners