Iran vs France
Tax systems side by side: income tax rates, corporate tax, VAT, withholding, special regimes and filing rules.
Overview
At a glance
Income tax
 IR
Iran
|
 FR
France
|
|
|---|---|---|
| Top rate | 30% | 45% |
| Effective top rate | 30% | 49% |
| Capital gains tax | 5% | 31.4% |
| Capital gains notes | Transfers of real property are taxed at 5% of the taxable value at the time of transfer (Article 59). Transfers of goodwill are taxed at 2%. Gains on securities and other assets may fall under other chapters of the Direct Taxes Act rather than the 5% headline capital gains rate. | Securities and similar investment income: flat tax (PFU) of 31.4% from 2026 (12.8% income tax plus 18.6% social levies on most investment and capital income). Option to use progressive PIT rates instead. Real estate gains use separate progressive rules with holding-period rebates. |
| Social security (employee) | 7% | 22% |
| Social security (employer) | 23% | 45% |
| Social security annual cap | — | $48,060 |
Withholding rates
Other taxes
Tax features
|
IR
Iran
|
FR
France
|
|
|---|---|---|
| Personal income tax | Yes | Yes |
| Capital gains tax | Yes | Yes |
| Corporate tax | Yes | Yes |
| VAT / GST | Yes | Yes |
| Wealth tax | No | Yes |
| Inheritance tax | No | Yes |
| Exit tax | No | Yes |
| CFC rules | No | Yes |
| Digital services tax | No | Yes |
| Crypto-specific rules | No | No |
| Participation exemption | No | Yes |
| Territorial exemption | No | No |
Special regimes
Active special regimes in Iran
Active special regimes in France
Residency and filing
|
IR
Iran
|
FR
France
|
|
|---|---|---|
| Residency threshold | — | 183 days |
| Filing deadline | Fourth month after year-end (≈ end of Tir / late July) | May 21-June 4 |
| Automatic extension | No | No |
| Residency rules | Tax residence is not a simple 183-day count. Iranian nationals residing in Iran are taxed on worldwide income. Article 180 treats an Iranian who proves foreign tax residence as non-resident for that year unless they had employment in Iran, stayed in Iran at least six consecutive or intermittent months in the tax year, or were abroad only on mission, medical treatment or similar grounds. Foreign nationals are generally taxed on Iran-source income; physical presence and housing ties determine residence in practice. | French tax resident if home, principal abode, principal professional activity, or centre of economic interests is in France. The 183-day count is a common treaty tie-breaker but domestic residence is fact-based, not a single day threshold. |
| Filing notes | The tax year follows the Solar Hijri calendar (approximately 21 March to 20 March). Employers withhold salary tax monthly. Annual business income returns are due by the end of the fourth month after the year-end (traditionally the end of Tir, around late July). Corporate returns follow a similar four-month deadline after the fiscal year-end. | 2025 income declared in 2026: online deadlines 21 May (departments 01–19 and non-residents), 28 May (20–54), 4 June (55–974/976); paper deadline 19 May. Department stagger applies to IFI on the same calendar. |
| Exit tax details | — | Exit tax on unrealised gains on shares when leaving France if holdings exceed 50% of the company or EUR 800,000 total value, for individuals who were French tax resident six of the prior ten years. |
| CFC rules details | — | CFC rules apply to >50% holdings in entities subject to privileged tax regime (<40% of French rate) |