Iran Gov't Setting New Stage: Advent of Personal Income Tax

The Ministry of Economic Affairs and Finance will prepare a preliminary draft of personal income tax bill by Jan. 10, a deputy economy minister said. 
“Having capital gains tax and redressing wrongs of tax exemptions at its core, the new bill will offer solutions to the tax system’s current challenges,” Mohammad Ali Dehqan-Dehnavi added.
The individual income tax or personal income tax is levied on wages, dividends, interest and other sources of income a person earns throughout the year, Fars News Agency reported.
Noting that some tax breaks have failed to produce the intended result such as improving investment and economic growth, as well as energizing the economy, the official said, “In the new bill, we intend to introduce time-bound, targeted tax credits. Tax exemptions must not extend forever; some economic sectors need to enjoy tax credits for a couple of years before they can generate a taxable income.”
He added that another objective set for the new bill is to improve the country’s wealth redistribution system. 
“There are insignificant revenues like the income tax imposed on the wages of employees of public and private sectors. The point is some high-income business owners don’t pay their share of taxes. Our aim is to impose higher tax rates on big earners and lower rates on low-income individuals,” he said.