People, Travel

Tax Break for Travel Industry

Tax Break for Travel IndustryTax Break for Travel Industry

In a move to encourage investment in Iran’s budding travel industry, Parliament has passed a bill granting new travel-related businesses full tax rebate for up to 10 years, said the director of the Ardebil office of Iran’s Cultural Heritage, Handicrafts and Tourism Organization.

“According to the new legislation on facilitation of investment, all tour and travel companies benefit from full tax and municipality fee exemption for 10 years,” said Karim Hajizadeh, according to YJC news agency.

The law went into effect in April 2015 but was publicized last week for hitherto unknown reasons.

The tax break, which can last anywhere between five and 10 years, applies to travel agencies, hotels and tourist resorts, among others.

However, Hajizadeh noted that to benefit from the law, business owners have to file income tax returns. Businesses that increase their payroll by 50% every year are entitled to one more year of tax abatement.

The law explicitly grants full tax exemption to new ventures, but established businesses may also benefit from partial tax exemption.

“Those who want to develop, upgrade or renovate their establishments may be eligible for partial tax relief relevant to the amount of investment they make,” the official said.