- Brackets updated
migrated from the production database; research reasoning not recorded.
Top income tax
30.0%
Worldwide system
Corporate tax
25.0%
VAT
10.0%
standard rate
Tax residency
—
45 tax treaties
Iran tax profile
Data year: 2026
- Tax system
- Worldwide Iranian residents (Iranian and foreign individuals with a place of residence in Iran, or present more than six months in the tax year) are taxed on worldwide income under the Direct Taxes Act. Non-residents pay tax on Iran-source income and certain Iranian-source royalties, fees and similar payments. Legal persons follow a 25% corporate income tax on taxable profits. Value added tax is levied at a 10% standard combined rate on most goods and services (9% under the permanent VAT Act plus budget-law increments). Employment income is taxed separately from business profits under Articles 84–85, with annual exemption and bracket thresholds reset each year in the budget law.
- Top PIT rate
- 30.0%
- Corporate tax rate
- 25.0%
- VAT
- 10.0%
- Capital gains tax
- 5.0% 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 headline capital-gains field.
- Social security (employee)
- 7.0%
- Social security (employer)
- 23.0%
- Dividend withholding
- --
- Interest withholding
- --
- Royalty withholding
- --
- Treaty count
- 45
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| IRR 0 | and above | 25.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| IRR 0 | IRR 4,800,000,000 | 0.0% |
| IRR 4,800,000,000 | IRR 9,600,000,000 | 10.0% |
| IRR 9,600,000,000 | IRR 12,000,000,000 | 15.0% |
| IRR 12,000,000,000 | IRR 14,400,000,000 | 20.0% |
| IRR 14,400,000,000 | IRR 16,800,000,000 | 25.0% |
| IRR 16,800,000,000 | and above | 30.0% |
Special regimes (1)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Free trade and special economic zone incentives Qualifying manufacturing and export activities in designated free-trade and spec... | -- | 20yr | Active |
Tax residency
- 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.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 03-21 – 03-20
- Filing deadline
- Fourth month after year-end (≈ end of Tir / late July)
Sources
- Direct Taxes Act (INTA English translation) (accessed Oct 9, 2026) Worldwide basis, arts. 59/84–86/105/131/180, CIT 25%, property transfer 5%, salary framework
- FY1405 salary tax table (budget law implementation) (accessed Oct 9, 2026) Annual exemption IRR 4.8bn; marginal bands 10–30% on taxable salary for Iranian year 1405
- VAT Act art. 7 and budget top-up (accessed Oct 9, 2026) Statutory 9% VAT plus budget increments to 10% combined standard rate
- Social Security Law art. 28 (accessed Oct 9, 2026) 7% employee and 20% employer core contributions; 3% unemployment borne by employer
- IFJIA — Iran tax and treaty list (accessed Oct 9, 2026) INTA overview and partial list of applicable double-taxation agreements
- Tax Foundation — corporate tax rates 2025 (accessed Oct 9, 2026) Cross-check of 25% headline CIT
Change history
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.