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Main approach of tax system is to support production

The head of the Iranian National Tax Administration (INTA) said that the tax system is not against the industry, mining, trade sector or other areas of the manufacturing sector, but it is alongside them to accelerate the economic boom and employment in the country.
(SHADA: TEHRAN) -- The Direct Tax Law provides good incentives and support for pro-economic activists, most notably tax incentives to the manufacturing, export, cooperative, investment and tourism sectors, Sayyed Kamel Taghavinejad stated.

According to Article 132 of this law, the income of non-governmental legal entities in production or mining units, provided that they have a license from the legal authorities, are taxed at a zero rate from the start date of exploitation or extraction for 5 years and in less developed regions for 10 years, Taghavinejad said.

He added that if the economic units mentioned above are located in industrial estates or special economic zones, they will be subject to the use of an additional 2-year zero rate, and if the industrial estates or special economic zones are established in less developed regions, they will be subject to the use of an additional 3-year zero rate.

Taghavinejad also pointed to some examples of employment protection and stated: If production, mining and service units that have more than 50 workers increase the number of their workers at least by 50 percent per year, they will get one additional year for each year.

Granting tax exemptions to knowledge-based companies and companies based in science and technology parks for 15 years is another example of tax support from the manufacturing sector, he added.

100% of the revenue from exports of non-oil products and agricultural products and 20% of the proceeds from the export of raw materials are taxed at a zero rate in order to encourage the export sector, the head of INTA noted.

Article 133 of the Direct Tax Law provides incentives for cooperative companies. Accordingly, 100% of the income of the Agricultural Development Support Fund is exempted from taxation for rural cooperatives, nomads, farmers, fishermen, workers, students, pupils and their unions. Also, the income of handicrafts and carpet workshops, co-operative companies and related trade unions is also exempted from tax payments.

One of the problems of small and medium-sized manufacturing units to receive banking facilities was tax debt, and INTA has provided some conditions for them to continue their work, Taghavinejad stated.

The implementation of tax justice is one of the most important policies of the tax system, he said, adding: INTA collects taxes on the basis of economic information and sufficient documents.
 
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