Iran Tax Filing Guide

Annual Income Tax Return (ITR)

• Due date — June 30: The annual Income Tax Return (the "اظهارنامه مالیاتی" — the "tax declaration") for the prior Iranian calendar year must be filed by June 30 of the following year. The Iranian calendar year runs from 21 March to 20 March (Farvardin to Esfand).
• Who must file: All legal entities (companies) must file an annual ITR regardless of the income level. The individuals with the total annual income exceeding the tax-free threshold (the "معافیت مالیاتی" — the "tax exemption") must also file. For 2026, the tax-free threshold for individuals is approximately IRR 1,000,000,000 (subject to annual adjustment).
• Contents: The ITR includes the income statement, the balance sheet, the tax calculation, and the supporting schedules. The corporate ITR requires the audited financial statements (if the company is subject to the statutory audit).
• Extension: The TAO may grant a one-month extension (to July 31) upon the written request. The extension does NOT suspend the interest accrual on the unpaid tax.

VAT Returns

• Filing frequency — quarterly: The VAT-registered taxpayers must file VAT returns (the "اظهارنامه ارزش افزوده" — the "value-added tax declaration") on a quarterly basis. The return is due within 15 days after the end of each calendar quarter.
• VAT rate — 9%: The standard VAT rate for 2026 is 9% (the "نرخ مالیات بر ارزش افزوده" — the "VAT rate"). The reduced rate of 6% applies to certain basic goods, and the zero-rate applies to the exports.
• Input VAT credit: The taxpayer may credit the input VAT paid on the business purchases against the output VAT collected from the customers. The excess input VAT may be carried forward or refunded (the refund is subject to the TAO audit).
• Penalty for late filing: The late filing of the VAT return attracts a penalty of 2.5% of the VAT payable per month or part thereof, up to a maximum of 50% of the tax due.

Withholding Returns

• Filing frequency — monthly: The employers and the payers must file monthly withholding returns (the "اظهارنامه مالیات حقوق" — the "salary tax declaration") for the employee salary tax and the other withholding taxes.
• Withholding obligations: The employer must withhold the progressive income tax (0-35%) from the employee salaries and remit it to the TAO by the end of the following month. The other withholding taxes include the dividend WHT (42.5%), the interest WHT (35%), the royalty WHT (35%), and the rental WHT (25-35%).
• Annual reconciliation: The amounts withheld during the year are reconciled against the annual ITR. Any excess withholding is refunded, and any shortfall is payable with the annual return.

eFiling System

• Electronic tax system: The Tax Affairs Organization operates a fully electronic tax system (the "سامانه مالیاتی" — the "tax system") accessible at https://my.tax.gov.ir. All tax returns, the payments, the correspondence, and the document submissions are conducted through the portal.
• Digital signature: The taxpayers must obtain a digital signature certificate (the "امضای دیجیتال" — the "digital signature") to authenticate the electronic filings. The certificate is issued by the TAO-certified service providers.
• Tax identification: The taxpayer is identified by the TIN (the "کد اقتصادی" — the "economic code") for all electronic transactions. The TIN must be included on all the invoices, the contracts, and the correspondence with the TAO.

Tax Assessments and Appeals

• Self-assessment: The tax system is based on the self-assessment — the taxpayer computes and declares the tax liability. The TAO may audit the return within 3 years of the filing (the statute of limitations).
• Tax audit and assessment: If the TAO disagrees with the self-assessment, it issues a formal tax assessment notice (the "برگ تشخیص مالیات" — the "tax assessment notice"). The taxpayer must respond within 30 days.
• Appeals process: The taxpayer may appeal the assessment to: (1) the Preliminary Tax Review Board (the "هیأت حل اختلاف بدوی" — the "initial dispute resolution board"), (2) the Appellate Tax Review Board (the "هیأت حل اختلاف تجدیدنظر" — the "appellate dispute resolution board"), and (3) the Supreme Tax Council (the "شورای عالی مالیاتی" — the "Supreme Tax Council"). The final appeal lies with the Administrative Justice Court.
• Suspension of collection: The filing of an appeal does NOT automatically suspend the tax collection. The taxpayer must request the suspension and may be required to provide a bank guarantee for the amount in dispute.

Penalties

• Late filing — 2.5% per month: The late filing of any tax return (ITR, VAT, withholding, or other) attracts a penalty of 2.5% of the tax due for each month or part thereof that the return is late. The maximum penalty is 50% of the tax due.
• Late payment — 2.5% per month: The late payment of any assessed tax (even if the return is filed on time) attracts a late payment penalty of 2.5% per month, calculated from the original due date until the date of payment. The maximum penalty is also 50% of the tax due.
• Non-filing — 30% penalty: The failure to file a return at all (as opposed to the late filing) attracts a penalty of 30% of the assessed tax, in addition to the late payment penalties.
• Tax evasion — up to 200% penalty: The intentional evasion or the fraud may result in a penalty of 100% to 200% of the evaded tax and the criminal prosecution (the imprisonment of 3 months to 3 years).

FAQs

Can I file my tax return in English?

No. The tax returns must be filed in Persian (Farsi). The supporting documents in a foreign language must be accompanied by a certified Persian translation.

What is the statute of limitations for a tax audit?

The TAO may issue a tax assessment within 3 years of the statutory filing date. The period is extended to 5 years in the case of the non-filing or the fraudulent returns.

Is there a tax amnesty programme?

Iran has occasionally introduced tax amnesty programmes (the "بخشودگی مالیاتی" — the "tax forgiveness") allowing the taxpayers to settle the historical tax debts with the reduced penalties. The most recent amnesty programme expired in 2023. There is no current amnesty programme for 2026.