Income tax on rent, worked example, in Iran
Taxation Researcher | January 15, 2022
| Non-resident couple´s rental income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less: Expenses3 | 25% | 4,500 | 18,000 | 36,000 |
| = Taxable Income | 13,500 | 54,000 | 108,000 | |
| Income Tax4 | ||||
| Up to IRR 30,000,000 | 15% | 138 | 138 | 138 |
| IRR30,000,000 - IRR 100,000,000 | 20% | 431 | 431 | 431 |
| IRR100,000,000 - IRR 250,000,000 | 25% | 1,154 | 1,154 | 1,154 |
| IRR250,000,000 - IRR 1,000,000,000 | 30% | 1,742 | 6,923 | 6,923 |
| Over IRR 1,000,000,000 | 35% | - | 8,131 | 27,031 |
| Annual Income Tax Due | 3,465 | 16,777 | 35,677 | |
| Tax Due as % of Gross Income | 19.25% | 23.30% | 24.78% | |
Notes
1 The residential property is jointly owned by husband and wife.
2 Exchange rate used: 1.00 US$ = 32,500.00 IRR
3 A fixed-deduction of 25% of the gross income is extended to all taxpayers to account for income-generating expenses.
4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.
INCOMTE TAX |
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| TAXABLE INCOME, IRR (US$) | TAX RATE | |
| Up to 30,000,000 (US$ 923 ) | 15% | |
| 30,000,000 - 100,000,000 (US$ 3,077 ) | 20% | |
| 100,000,000 - 250,000,000 (US$ 7,692 ) | 25% | |
| 250,000,000 - 1,000,000,000 (US$ 33,769 ) | 30% | |
| Over 1,000,000,000 (US$ 33,769 ) | 35% | |