October 22, 2018
Individuals of Iranian nationality resident in Iran are subject to tax on all their income whether earned in Iran or abroad. Non-resident individuals of Iranian nationality are subject to tax only on income earned in Iran.
Non-Iranian individuals are subject to tax on their income earned in Iran and also on their income received from Iran for the granting of licenses and other rights, the provision of training and technical assistance and the supply of films.
There are five categories of income earned by individuals: (1) salaries, (2) income from professions, trades, and miscellaneous sources, (3) incidental or windfall earnings, (4) real estate income, and (5) income derived from agriculture. Each category is taxed separately and has its own computational rules.
Real Estate Income
Rental income is subject to real estate income tax in Iran. A fixed deduction of 25% of the gross income is extended to all taxpayers to account for income-generating expenses. The net income, which is 75% of the gross rent, is then subject to the following rates:
|TAXABLE INCOME IRR (US$)|
|Up to 30 million (US$923)|
|30 million - 100 million (US$3,077)|
|100 million - 250 million (US$7,692)|
|250 million - 1 billion (US$30,769)|
|Over 1 billion (US$30,769)|
|Source: Global Property Guide|
Rental income is exempted from real estate tax if the property is a residential property leased as such and measures up to 150 sq. m. if it is located in Tehran (up to 200 sq. m. if it is located in other parts of the country).
There is no capital gains tax in Iran but there is a transfer tax on sales of properties (see buying guide).
Property taxes have been abolished as of February 2002.