How to Be Exempted from Tax Payment in Free Zones

Posted on Posted in Commercial Law, Incoporating Papers

According to article 13 of the law “on the management of free commercial-industrial zones” , ratified in 1993, legal and natural entities who are engaged in performing economic activities in free zones are exempted from paying taxation of their economic activities for 15 years (from the date of beginning their activity).

Nowadays, some companies establish their residence or a branch in free zones while a great number of their economic activities is carried out outside free zones ( in Tehran or other industrial cities). They do so to take advantage of the above-mentioned article and be exempted from paying their taxes. They try to pretend that their whole income is obtained inside the free zone which enables them to avoid paying their taxes.

Meanwhile, it is probable that the representatives of foreign sellers hold a branch in a free zone and a huge amount of their sales takes place outside free zones through marketing and advertising in the media and regard such sales to have happened outside free zones.

It is worth mentioning that according to article 13 of the law “on the management of free commercial-industrial zones” , ratified in 1993, tax exemption is dedicated to those economic activities that were exclusively carried out in free zones, regardless of company residence or the address of branch or company office which is located in free zones. So, only the income which originates from economic activities taking place inside free zones are exempted from tax payment and the income of those economic activities which take place between free zones and other districts will be included in the tax exemption as well.

One of the most important reasons for the establishment of free zones is to facilitate trading with the host country. One of the non-tariff obstacles on the way of trading with Iran is the difficulty made by tax payment. Paying tax usually has a complicated regime hardening international trade and investment. The government set free zones to remove or ease such an obstacle as much as possible. Registering a company in free zones cost a little more than other places but facilities and opportunities provided in such zones encourage more companies to evaluate their chances in Iran free zones.

FAR Law Firm

72 thoughts on “How to Be Exempted from Tax Payment in Free Zones

  1. I’ve read several excellent stuff here. Certainly worth bookmarking for revisiting.
    I wonder how much effort you put to create this
    sort of wonderful informative website.

  2. Aw, this was a very good post. Finding the time and actual effort to generate a good
    article but what can I say I hesitate a lot and don’t seem
    to get nearly anything done.

  3. Heya are using WordPress for your blog platform? I’m new to
    the blog world but I’m trying to get started and create my own. Do
    you require any coding expertise to make your own blog?

    Any help would be really appreciated!

  4. Woah! I’m really enjoying the template/theme of the site.
    It’s simple, yet effective. Lots of times it’s challenging to acquire that “perfect balance” between user friendliness and look and feel.
    I must say you may have done a amazing job with this.
    Also, the blog loads extremely quick in my opinion on Internet explorer.
    Superb Blog!

  5. Hello there, just became alert to your website through Google,
    and located that it really is really informative. I am gonna watch out
    for brussels. I’ll be grateful if you continue this in future.
    A lot of individuals will be benefited from your writing.
    Cheers!

  6. Unquestionably assume that which you said. Your best reason appeared to be about the net the easiest thing to understand.

    I have faith that to you, I certainly get irked while people consider
    worries that they can just tend not to learn about. You were able to hit the
    nail upon the top as well as defined out everything without
    needing side-effects , people could go on a signal. Will probably
    come back to obtain additional. Thanks

  7. You are so cool! I don’t think I’ve browse through anything like this before.

    So great to find out somebody with a bit of genuine ideas on this material.
    Really.. thank you for starting this up. This amazing site is
    something that is required on the internet, someone after some originality!

  8. Someone essentially lend a hand to make seriously posts I may state.

    Which is the first time I frequented your web page and thus far?
    I amazed together with the research you intended to create this kind of set
    up incredible. Magnificent task!

  9. An individual necessarily assist to create critically articles I would state.
    That is the first time I frequented your web site and up to now?
    I amazed together with the research you designed to make this actual submit amazing.
    Wonderful task!

  10. I tend not to have any idea the way i ended up here, nevertheless i thought this post was good.
    I don’t know who you are but definitely you might be attending
    a famous blogger in the event you are certainly
    not already 😉 Cheers!

  11. magnificent post, very informative. I ponder why other specialists of this sector do not
    understand this. You should proceed your writing.
    I’m sure, you’ve an excellent readers’ base already!

  12. I love the valuable information you provide inside your articles.
    I will bookmark your blog and look again here
    frequently. I am quite sure I’ll learn many new stuff on this site!
    All the best for the next!

  13. It’s a shame you don’t use a donate button! I’d definitely donate for this excellent blog!
    I suppose for now i’ll be happy with book-marking and adding your RSS feed to my
    Google account. I look ahead to fresh updates and will share this website with my Facebook group.
    Talk soon!

    1. Thanks for visiting us. We try our best to provide our visitors what they need to know about Iran law and business. You can support us by introducing our website and law firm to your friends and all interested visitors. We truly appreciate your help and kindness.
      Good Luck

  14. Hi I am so happy I found your site, I really found you
    by mistake, while I was searching on Bing for something else, Regardless I am here now and would just like to say many thanks for a marvelous post and a all
    round thrilling blog (I also love the theme/design), I don’t have time to browse it all at
    the moment but I have saved it and also added in your RSS feeds, so when I have time I will be back to read a
    lot more, Please do keep up the fantastic work.

  15. Thank you for any other great article. The place else may just anybody get that kind of info in such a
    perfect approach of writing? I’ve a presentation subsequent week, and I am on the look for such info.

  16. I do not know the way i ended up here, however i thought this post was
    good. I don’t know your identiity but definitely you’re
    seeing a famous blogger if you will not be already 😉 Cheers!

  17. whoah this blog is great i really like studying your articles. Stay up the great paintings! You understand, lots of individuals are looking round for this info, you could help them greatly.

  18. hello there and many thanks for your information – I’ve definitely gathered something new from
    on this site. I did however expertise a number of technical issues by using this
    site, since I experienced to reload the internet site many times previous to I was able to buy it
    to load properly. I had been wondering should your website
    hosting is OK? Not really that I am complaining, but
    sluggish loading instances times will often affect your placement in the search engines
    and could damage your high-quality score if ads and marketing with Adwords.
    Well I’m adding this RSS to my e-mail and can be aware of
    much even more of your respective intriguing content.
    Ensure that you update this again soon.

  19. I like the helpful information you provide with your
    articles. I’ll bookmark your blog and look again here frequently.

    I am just quite certain I will learn a good amount of new stuff below!
    Best of luck for the next!

  20. Así que bueno, cabezota de mi, llamo al servicio técnico de Fujitsu Madrid, donde según el dependiente había sido enviado, le cuento el problema a la que me atiende y me dice que el primer año de garantía es de la marca y el segundo del establecimiento donde lo compro, por ley. Y que claro, es mi palabra contra la suya y no tengo forma de demostrar que no ha sido por un mal uso… no si a mi me encanta saltar encima de mi portatil… de todas formas nos recomienda que hablemos con el servicio de atención al cliente del fnac y nos da la hoja de reclamaciones.

  21. In my opinion that is among the this sort of
    lot important info to me. And i’m happy reading your article.
    However want to statement on some general things, The website taste is ideal, the articles is actually great : D.
    Excellent activity, cheers

  22. Thanks a lot for sharing this with all folks you really recognize what you’re talking about!
    Bookmarked. Please also seek advice from my web site =).
    We will have a hyperlink change agreement between us

  23. Hi great blog! Does running a blog such as this require a lot of work?
    I’ve no expertise in computer programming however
    I had been hoping to start my own blog in the near future.
    Anyhow, should you have any recommendations or techniques for
    new blog owners please share. I know this is off subject nevertheless I
    just needed to ask. Cheers!

  24. Heya this is kind of of off topic but I was wanting to
    know if blogs use WYSIWYG editors or if you have to manually code
    with HTML. I’m starting a blog soon but have no coding experience so I wanted to get advice from someone with experience.
    Any help would be greatly appreciated!

  25. Hey there just wanted to give you a brief heads up and let
    you know a few of the pictures aren’t loading correctly.
    I’m not sure why but I think its a linking issue.
    I’ve tried it in two different web browsers and both show the same results.

  26. Having look at this I believed it had been extremely enlightening.
    I appreciate you finding the time and energy to set
    this post together. I once again find myself spending plenty of
    time both reading and commenting. But just what exactly, it had been still
    worthwhile!

  27. Very great post. I simply stumbled upon your blog and wished to say
    that I’ve really loved surfing around your blog posts.
    After all I will be subscribing on your feed and I am hoping you write again very soon!

  28. Just desire to say your article is as astounding.

    The clearness to your post is simply excellent and i can suppose you are
    knowledgeable in this subject. Fine along with your permission allow
    me to seize your RSS feed to stay updated with coming near near post.
    Thanks 1,000,000 and please carry on the enjoyable work.

  29. Wow, fantastic weblog structure! How lengthy have you ever
    been running a blog for? you make running a blog look easy.
    The whole look of your website is excellent, as well as the content material!

  30. I really like your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you?

    Plz answer back as I’m looking to create my own blog and would like to know where u got this from.
    thank you

  31. We absolutely love your blog and find nearly all of your post’s to be precisely what I’m looking for.
    Does one offer guest writers to write content for yourself?

    I wouldn’t mind creating a post or elaborating on a lot of the subjects you write with regards to here.
    Again, awesome website!

  32. Hello there, just became alert to your blog through Google, and found that it’s really
    informative. I am gonna watch out for brussels. I will be grateful
    if you continue this in future. Lots of people will
    be benefited from your writing. Cheers!

  33. Wonderful beat ! I would like to apprentice while you amend your site,
    how can i subscribe for a blog web site? The account helped me
    a acceptable deal. I had been a little bit acquainted of this your broadcast provided bright clear concept

Leave a Reply

Your email address will not be published. Required fields are marked *