Economy, Domestic Economy

Tax Exemption for Exports

Tax Exemption for ExportsTax Exemption for Exports

Export earnings are exempt from taxation, provided that the exporters file their income tax returns, IRNA cited director of Export-Import Development at Iran’s Trade Promotion Organization (TPO), Seyed Abbas Hosseini as saying on Thursday.

Attending workshop on export-import regulations held in the northern city of Rasht (the capital of Gilan Province), the official said the import of industrial raw materials intended for production and export is exempt from import tariffs for a maximum period of one year, depending on the industrial units’ production capacity and its volume of exports.

Re-exports are also exempt from import duties and taxes, said the official, explaining that the Iranian traders can engage in re-export activities wherein they buy the products from a country and export them to other destinations.

The official cited two conditions for conducting re-export activities: first, the maximum time from import ro re-export should not exceed six months; and second, if traders intend to use foreign currency from the banks at official exchange rates for re-export purposes, the bank’s agreements must also be obtained.

To accelerate the process of re-export, Hosseini said traders need not actually transport the imported goods to the country before shipping them to a third country; noting that traders can directly transport the goods to a target destination after registering the transit documents in the customs office.

The export of items related to cultural heritage, human, animal or plant genetic resources and any item covered by the government’s subsidy schemes is banned, he added.