If you are interested in investment in Iran I would appreciate to explain to you some important and key points which help you make the right choice and decision.
There are 3 ways to invest:
1) Establishing a factory which 100% stake and ownership is with foreign investor. it means that you are the owner of all rights and anytime you decide to disband the factory, Iran government guarantees to refund capital and profits.
2) Establishing an agency in Iran which is your exclusive representative to provide a particular service, for example your field of business needs a representative integrally to adjust and arrange your goods which is imported to Iran and serving people.
This is while all share percentage is for you and also you have a mother company in your country
3) Participating in shares of an Iranian company, it means that you transfer money, instrument or technology for related field and project then you will be one of shareholders of that company.
There are 3 kinds of special area which the rules are different with other parts of Iran:
1) Special economic zone: this area in comparison with other parts of country has rules with less severity and limitation. The purpose of formation of these areas is to support economic activities, establishment of international trade, technologies transfer, non-oil export, creating jobs, attracting and encouraging domestic and foreign investment, re-export, transit, transshipment, possibility of retail only for foreigners.
2) Free trade zone: this area is outside of the customs border which products have export orientation. The area is located inside or in the vicinity of a port where free trade is permitted with other parts of the world.
Free trade zone has some features same as tax exemptions, exemption of profits and customs duties, lack of formalities of currency, administrative and cumbersome regulations, entry of foreigners without a visa, company registration with 100% foreign ownership.
3) Deprived area: this area has tax exemption for 10-15-20 years, it is consist on Land, instruments, products,…
There are 3 kinds of tax:
1) taxes and customs duties: this charge is for importing products to Iran and depends on the types of products, if the imported product does not have similar goods in Iran the minimum tax is 6% and if it is the same the tax will be up to 65% and for priority ten and Luxury goods is up to 100% .
This mode of calculation has been triggered importers import separate parts and assembles in Iran to avoid taxes of similar goods.
One of ways not to pay is transferring raw material from Iran or other countries to free trade zone or special economic zone and converting to final products in factories which are established by you or other, it caused your expired amount will be lower than when you import to a regular area. So you can get some benefits simultaneously
- A) Establishing factory without any tax for especial years in free trade zone or with lower tax in special economic zone.
- B) Importing raw material without any customs duties and tax in free zone trade and lower tax and customs duties in special economic zone.
- C) Exporting final products to other cities of Iran without any customs duties worth the amount of raw material imports.
2) Income taxes: income tax should be paid to government every year from net profit after deducting the total cost of the company. Establishing a factory in deprived area is exempted from paying income taxes. This is the best opportunity for a factory which is produced products but this is not possible for trade and import, of course, activities like agriculture are exempted.
3) Value added tax (VAT): this tax is paid by consumers which is 9%,
This is for every sale and purchase that includes the differences between sale and purchase price.