Brokerages will not pay value added tax anymore on their trading and clearing services, said Mostafa Haqiqi Mehmandari, a member of Bourse High Council, on Wednesday.
The decision, which is aimed at helping the brokerage industry rise from the slump in equity trading and boost investor confidence, was made in a meeting between high-level authorities from the Securities and Exchange Organization, Iranian National Tax Administration and Tehran Stock Exchange on October 21, Boursepress reported.
After three years of push and pull, a list of brokerages’ trading and clearing services will be exempted from paying VAT.
Brokerage activities are listed under articles 11 and 12 of the VAT tax code.
“Further exemption for credit given by brokerages will be sought,” Haqiqi added.
“To implement the change, SEO will rewrite a new draft for Article 12 of the VAT code and exemplify brokerage trading and clearing services before submitting it to the tax administration. Tax authorities will then issue the appropriate directives.”
