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Tax and Customs Duties on Export from Iran

Guiding Principle
In order to support local producers and manufactures, Iran’s tax regime has placed incentive tariffs or even full exemption on export of non-oil products out of Iranian territory. This being an important issue for foreign traders, who purchase goods and products from Iranian suppliers and plan to export these purchased goods out of Iran.

The tax and duties imposed on exportation of goods and services are subject to the below mentioned laws and regulations:

A. Taxation
According to Article 141 of Direct Taxation Act (abbrev. “IR-DTA”), 100% of the income derived from exportation of non-oil services and goods and goods and products of agricultural sector and 20% of incomes derived raw materials shall subject to tax with the rate of zero.

Therefore, in case a foreign trader purchases any type of goods, which is neither oil-services or goods nor raw materials, from an Iranian supplier and the final destination of the purchased goods or services is outside of Iran, the exportation is exempted totally from taxation.

B. Value Added Tax (VAT)
As mentioned above, according to the Iran Direct Act, in general exportation of non-oil goods and services are not subject to tax. Moreover, based on the Iranian VAT Act, no VAT shall be imposed on exportation of goods and services abroad. Article 13 IR-VAT provides that:

“Exportation of goods and services abroad, via formal departure gates shall not be liable to the tax subject of this Act and taxes paid on such terms shall be refunded upon providing bill of export issued by the customs (as regards goods) and proving documents and certificates.”

C. Customs Duties
Customs duties are actually one of the types of indirect tax, which is imposed based on Customs Tariff Table on importation only. Therefore, exportation is not subject to customs duties.

D. Commercial Benefit Tax
Commercial benefit tax is also imposed on importation and is not imposed on exportation.

E. Customs Charges
Customs charges are imposed on both export and import. The most important customs charges include the charges for unloading, loading, test and warehousing charges, freight carriage in customs and extra services.

F. Export Duties
Export duties is imposed on some specific goods, the list of which is declares from time to time by Ministry of Industry, Mine and Commerce. The export duties on any type of goods or services should be studied case by case.

January, 2017 Zahra Tahsili
Meyer-Reumann & Partners, Tehran Office
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