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HomeInvestment Promotions
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Investment Promotions
Stimulus Packages and Investment Incentives of Tehran
RowTitle of IncentiveRelated Legislative ArticleGranting BodyEconomic Sector
1Offering special tariffs levied on water, electricity, gas, and fuel for handicrafts workshopsClause (2) of circular No. 9905, Iranian targeted subsidy plan headquarters, dated Apr. 10, 2011Cultural Heritage, Handicrafts and Tourism Department of TehranHandicrafts
2Exemption of all handicraft workshops from paying the employer's share of premium (including engraving, Monabbat (wood carving), Khatam-kari (marquetry), Enamelling, tile relief, and Moaragh (Mosaic))Article (22) of the Decree of the Council of Ministers No. Ha23Te/106254, dated May 2, 1990Cultural Heritage, Handicrafts and Tourism Department of TehranSocial Security Insurance
3The following declared incomes shall be taxed at zero percent for five years, and ten years if located in underdeveloped regions: income resulting from manufacturing and mining activities, for non-state legal persons who either hold an operation license issued by related ministries or have signed extraction or sales contracts, since the effective date of this Article; and also income of such persons from hospitals, hotels, and tourist accommodation centers, for whom an operating license or permit has been issued by related authorities.Article (132) of direct tax reform bill (enacted on Jul. 22, 2015); and Article (32) of the bill on lifting competitive production barriers and upgrading the country's financial system (enacted on May 10, 2015)Tehran City and Tehran Province Tax OfficeTax, Production, Mining, Health and Health Care, Tourism
4The zero percent tax rate applicable to enterprises subject to this Article shall be raised by two years for those based in industrial parks or special economic zones, and by three years for those based in underdeveloped industrial parks or special economic zones.Clause (Pe) of Article (32) of the bill on lifting competitive production barriers and upgrading the country's financial system, enacted on May 10, 2015Tehran City and Tehran Province Tax OfficeTax, Free and Special Economic Zones
5In case the investment subject to this Article was made in partnership with foreign investors, and through a license from organization for investment, economic and technical assistance of Iran (OIETAI), 10% is added to the stimulus introduced in this Article for every 5% of foreign investment, in proportion to the registered and paid capital, with a cap of 50%.Clause (He) of Article (32) of the bill on lifting competitive production barriers and upgrading the country's financial system, enacted on May 10, 2015Tehran City and Tehran Province Tax OfficeTax, Foreign Investment
6If foreign companies utilize the capacities of Iranian production enterprises to produce products with prestigious brands and export at least 20% of them, the enterprise shall be taxed at zero percent from the beginning of their agreement with the Iranian company, during the tax period, and shall enjoy a 50% discount in the tax rate for their declared income from the sales of the products after this period.Clause (Khe) of Article (32) of the bill on lifting competitive production barriers and upgrading the country's financial system, enacted on May 10, 2015Tehran City and Tehran Province Tax OfficeProduction, Commerce, Foreign Investment
7All Iran and world tour services installations that have obtained operating licenses from related authorities prior to enactment of this Article, shall be exempt from 50% of their declared income tax for six years since effective date of this Article.Clause (Re) of Article (132) of the direct tax reform bill, enacted on Jul. 22, 2015Tehran City and Tehran Province Tax OfficeTax, Tourism
8One hundred percent (100%) of the income from the export of services, non-oil goods, and agricultural products, and 20% of the income from export of raw materials shall be taxed at zero percent.Clause (Alef) of Article (141) of the direct tax reform bill, enacted on Jul. 22, 2015Tehran City and Tehran Province Tax OfficeTax, Commerce, Agriculture
9Tax exemption of all handicraft workshopsArticle (142) of the direct tax reform bill, enacted on Jul. 22, 2015Tehran City and Tehran Province Tax OfficeTax, handicraft
10Offering a 10% tax relief for income from commodity exchanges; and a 10% income tax relief for companies listed on Iranian and foreign stock exchanges; and a 5% income tax relief for companies whose shares are traded in over-the-counter markets.Article (143) of the direct tax reform bill, enacted on Jul. 22, 2015Tehran City and Tehran Province Tax OfficeTax, Money and Capital Markets
11Offering stepped discount or financing a portion of the employer's share of premiums, so as to increase employmentExecutive bylaw of the Clause (Vav) of Article (80) of the Fifth Five-Year Development Plan No. Kaf46916Te/105061, dated Aug. 13, 2011Cooperatives, Labor, and Social Welfare Department of TehranSocial Security Insurance
12Offering exemption from employer's share of premium for up to five employeesSingle article of bill on exemption from the share of premium for employers with five employees (enacted on Mar. 7, 1983)Cooperatives, Labor, and Social Welfare Department of TehranSocial Security Insurance
13Issuing institution licenses for establishment of new industries within the 120 km radius of Tehran, and inside industrial parks, and issuing of operating licenses for already constructed new industriesArticle (8) of the Decree of the Council of Ministers No. 99757/43084, dated Aug. 9, 2009Industry, Mines and Business Department of TehranNew industries, Industrial Parks
14Offering exemption from interest and commission of facilities granted to private and cooperative sectors from the allocated (managed) funds, aiming to support venture capital financing in new industriesClause (Alef) of Article (151) of the Fifth Five-year Development Plan of the I.R. of IranIndustry, Mines and Business Department of TehranNew Industries
15Helping governmental and non-governmental industrial parks and regions, with provision of roadways, water, electricity, gas, and telephone until the entrance of industrial firmsClause (Alef) of Article (158) of the Fifth Five-year Development Plan of the I.R. of IranIndustry, Mines and Business Department of TehranIndustrial Parks, Energy
16Individuals financing the projects, plans, and working capital of manufacturing firms with their cash contribution and through partnership (Mosharekati) contracts shall be exempt from income tax equivalent to the minimum expected profit for such contracts, approved by the Money and Credit Council; and the profit paid by companies shall be regarded as a tax deductible expense.Article (138 bis) of Direct Taxes Act (enacted on Jul. 22, 2015)Tehran City and Tehran Province Tax OfficeTax, Production
17Equal treatment of Iranian and foreign investorsArticle (8) of foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002)Economic Affairs and Finance Department of TehranForeign Investment
18Transferring of the original capital, profit, and benefits of using the foreign capital as currency or commodityArticles (13) and (14) of foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002)Economic Affairs and Finance Department of TehranForeign Investment
19Quick and easy processes for application and approval of the foreign capitalArticles (6) and (7) of the foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002)Economic Affairs and Finance Department of TehranForeign Investment
20Issuing visa, work permit, and a three-year residence permit for foreign investors, managers, experts, and their immediate family membersArticle (20) of the foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002), and Article (35) of its executive bylawEconomic Affairs and Finance Department of TehranForeign Investment
21Guaranteeing the foreign investment in lieu of nationalization, expropriation, and waiver of their right to compensationArticle (9) of the foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002)Economic Affairs and Finance Department of TehranForeign Investment
22Imposing no restrictions on the volume and percentage of foreign investment partnership (incorporation of an Iranian company with a 100% foreign capital)Article (4) of the foreign investment promotion and protection act (FIPPA) (enacted on May 25, 2002)Economic Affairs and Finance Department of TehranForeign Investment
23Offering a 25% tax cut on declared taxable income of conventional unionized cooperatives and companiesNote (6) of Article (105) of the Direct Taxes Act (enacted on Jul. 22, 2015)Tehran City and Tehran Province Tax OfficeTax, Cooperative
24Offering a 100% tax exemption for the income of funds supporting the development of agriculture sector, fishermen, rural, etc. cooperative companies and their unionsArticle (133) of the Direct Taxes Act (enacted on Jul. 22, 2015)Tehran City and Tehran Province Tax OfficeTax, Cooperative, Agriculture
25Offering 20% more governmental incentive and stimulus packages (in addition to tax cuts) to cooperative sectors compared to non-cooperative sectorsClause (Pe) of Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranCooperative
26Offering grant-in-aid and interest-free facilities to cooperative companies, whose members are in one of the three lowest income decilesRow (1), Clause (Jim), Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranCooperative, Money and Capital Markets
27Offering a 20% discount on employer's share of premium for members of cooperativesRow (2), Clause (Jim), Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranSocial Security Insurance, Cooperative
28Offering counseling, improving productivity, carrying out studies, providing plans, taking possession and preparing landsRows (3) and (5), Clause (Jim), Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranCooperative
29Subsidizing the interest of facilities and other initial investment expenses for starting of cooperative companiesRow (4), Clause (Jim), Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranMoney and Capital Markets
30Providing capital resources for the cooperative sector, supported by Cooperative Development Bank and Cooperative Investment Guarantee FundClause (Vav) of Article (9) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of IranCooperatives, Labor, and Social Welfare Department of TehranCooperative, Money and Capital Markets
31Allocating 30% of the income from transfer of state-owned enterprises to extensive national cooperativesRow (2.2), Clause (Dal) of the Law on Execution of General Policies of Article 44 of the Constitution of the I.R. of Iran (communique of the Supreme Leader, dated Jul. 22, 2005)Cooperatives, Labor, and Social Welfare Department of TehranCooperative
32Expending the insurance coverage of agricultural production and producers by 50% at leastClause (Ta) of Article (143) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranInsurance, Agriculture
33Supporting agricultural production through subsidy on interest and commission of facilities, grant-in-aids, subsidies, and other incentivesClause (Alef) of Article (145) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranAgriculture
34Fixing effective tariffs on import of agricultural products and commodities, such that the domestic producer would always have a competitive price edgeClause (Be) of Article (145) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranAgriculture, Commerce
35Providing legal and financial support for legal organizations, with the priority of agricultural co-ops, aiming to establish a unified management, and integrate farmlandsArticle (146) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranCooperative, Agriculture
36Providing financial support for the development of industrial slaughterhouses, and improvement of the conditions of traditional and semi-industrial slaughterhouses by the non-state sectorClause (Alef) of Article (149) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranAgriculture
37Improving the level of support for the agricultural sector up to at least 35% of its value of productionClause (Be) of Article (149) of the Fifth Five-year Development Plan of the I.R. of IranAgricultural Jihad Organization of TehranAgriculture
38Exempting and collecting customs duties, based on preferential tariffs included in commercial state agreements with foreign countriesArticle (6) of the Customs LawCustoms of I.R. of IranCommerce
39Clearing commodities after receiving a letter of guarantee based on circular No. 10/271912, dated , Mar. 19, 2011 of the Customs Administration of the I.R of IranArticle (1) of executive bylaw of Clause (3) under Article (12) of the addendum bill to the law on adjusting a section of financial government regulations, No. kaf37914Te718, dated Mar. 29, 2008Customs of I.R. of IranCommerce
40Clearing parts and raw materials in installment, while retaining a portion that would suffice the import duty and other costs, such as maintenance and sales of the goodsArticle (1) of executive bylaw of Clause (3) under Article (12) of the addendum bill to the law on adjusting a section of financial government regulations, No. kaf37914Te718, dated Mar. 29, 2008Customs of I.R. of IranCommerce
41Levying preferential tariffs on semi-knocked-down (SKD) and complete knock-down (CKD) kitsArticle (12) of the act on removing production and industrial investment barriers (enacted on Dec. 20, 2008)Customs of I.R. of IranCommerce
42Offering a 15% commercial profit tax discount on customs value of commodities imported from industrial-commercial free zonesArticle (2) of the Decree of the Council of Ministers No. Ha29291Te/64648, dated Mar. 6, 2004Customs of I.R. of IranCommerce, Free Zones
43Exempting permitted mining and industrial production firms, importing manufacturing machinery, from customs duty and commercial profit taxSingle article of the decree of the council of revolution, dated May 14, 1980Customs of I.R. of IranCommerce, Production
44Reimbursing the customs duty for import of raw materials and equipment used for production of export goodsNote (3) under Article (14) of Export-Import Regulations Act (Sept. 26, 1993)Customs of I.R. of IranCommerce
45The pre-exportation entry of raw materials as temporary admission, to be incorporated in the production of export goods is exempted from all import duties, except those designated as expenses or fees, provided that valid security or promissory notes be deposited with the Customs AdministrationArticle (12) of Export-Import Regulations Act (Sept. 26, 1993); and Article (20) of the law on the regulations facilitating the renovation of the country’s industries (enacted on Sept. 16, 2003)Customs of I.R. of IranCommerce, Production
46Covering a portion of expenses of exporters participating in foreign exhibitionsDecree of the Council of Ministers No. Ha41479Te/167890, dated Dec. 8, 2008; and Clause (He) under Article (9) of the directive on supporting the promotion of non-oil exports No. 584261/1, dated Oct. 10, 2011, of the Ministry of Industry, Mine, and TradeIndustry, Mines and Business Department of TehranCommerce
47Providing Export IncentivesClause (1) of the Decree of the Council of Ministers No. Ha41479Te/167890, dated Dec. 8, 2008; and Articles (1-9) of the directive on supporting the promotion of non-oil exports No. 584261/1, dated Oct. 10, 2011, of the Ministry of Industry, Mine, and TradeIndustry, Mines and Business Department of TehranCommerce
48Covering a portion of the costs of commercial, marketing, and investment delegations of Trade Promotion Organization of Iran (ITPO)Decree of the Council of Ministers No. Ha41479Te/167890, dated Dec. 8, 2008; and Clause (Pe) under Article (9) of the directive on supporting the promotion of non-oil exports No. 584261/1, dated Oct.10, 2011, of the Ministry of Industry, Mine, and TradeIndustry, Mines and Business Department of TehranCommerce
49The banks are required to provide and pay facilities with industrial rates to encourage investment of private and public sectors in creation and promotion of tourism installationsArticle (5) of Iran and World Tour Promotion BillCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Money and Capital Markets
50All tourism-related installations are subject to views, regulations, and directives of the industries sector regarding all matters, including fuel, water, electricity, duties, taxes, loans, etc.Article (8) of Iran and World Tour Promotion BillCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Industry
51The land-use change and density duties can be paid in installments based on provisions of the Clause two of the act. The procedure for payment of other duties is subject to current financial criteria and regulations.Clause (3 & 4) under Article (22) of Municipal ActCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Housing and Urban Development
52Organization and promotion of tourism installations in Tehran; Offering special discounts for tourism installations; Offering discounts for land-use change of residential landsIslamic City Council of TehranCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Housing and Urban Development
53Offering special facilities to tourism installations regarding technical construction issuesWorking committee of Article 5 commission in Tehran, High Council of Architecture and Urban PlanningCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Housing and Urban Development
54Tourism installations, travel agencies, and similar services such as institutions within the tourism installations are under industries sector tariffs in terms of building permit fees. Municipalities are required to calculate and collect designated fees for the building only, regardless of the type of permit and land-use, according to tariffs of industries sector, while waiving the land fees except the renovation fee.Article (12) of Iran and World Tour Promotion BillCultural Heritage, Handicrafts and Tourism Department of TehranTourism, Housing and Urban Development
55Guaranteeing the payment of the difference in sales price and the guaranteed state purchase rateArticle (6) of the addendum bill to the law on adjusting a section of financial government regulationsTehran Regional Water AuthorityEnergy
56Guaranteeing the purchase of harvested water and refined wastewater from Iranian and foreign investors (the surplus water resulting from water saving in consumption, and costs of water transmission by the non-state sector), with a negotiated price per case, or through subsidies of the Ministry of Energy and its subsidiariesArticle (20) of the addendum bill to the law on adjusting a section of financial government regulations (2)Tehran Regional Water AuthorityEnergy, Waste Management
57Issuing water certificates for investors in projects that are 30% complete, or in plans whose second stage examinations have been approved.Single article of water plans investment incentive bill, enacted in 2002Tehran Regional Water AuthorityEnergy
58Incentives for war veterans, the elite, knowledge-based companies, inventors, and foreign investors:
Considering the share of war veterans, elites, knowledge-based companies, inventors, and foreign investors, a cash portion of 10% shall be applied to contracts with companies based in Shams Abad, Abbas Abad, Salariyeh, Damavand (2), Paytakht, Kharazmi, Abbas Abad, Charmshahr, Ayeneh Varzan, Dehak, and Parand, and a cash portion of 5% for those based in Shahriar, Nasir Abad, Qarchak, Pishva, Firoozkooh, and Bijin industrial parks and regions. The plan shall include a maximum of 16 three-month installments (48 month in total), or the companies can enjoy a 10% relief in the total contract price through a plan consisting of 20% cash payment, and 10 three-month installments.
Directive No. 2570/40, dated Apr. 20, 2016, on operating land, building and installations of towns, industrial regions, and technology parks, 2016Tehran Industrial Parks Co.Industrial Parks, Foreign Investors
59Offering discount for full disbursement of the contract price:
Applicants that pay the total utilization charge of lands and buildings when signing a contract, or prepay the remaining installments are subject to a 25% relief for the remaining annual installments.
Directive No. 2570/40, dated Apr. 20, 2016, on operating land, building and installations of towns, industrial regions, and technology parks, 2016Tehran Industrial Parks Co.Industrial Parks
60Offering discounts for large and uneven lands: Offering up to 10% of discount when signing contracts and after the board has made its decision, for large lands (according to different definitions for each industrial park or region) and uneven lands (based on justification, technical, and economic reports).Directive No. 2570/40, dated Apr. 20, 2016, on operating land, building and installations of towns, industrial regions, and technology parks, 2016Tehran Industrial Parks Co.Industrial Park
61Offering stimulus to companies based in industrial parks and regions for repayment of deferred debts: Considering the communique No. 4764/40, dated May 10, 2016 of Iran Small Industries and Industrial Parks Org. entitled "guidelines for awarding incentives to industrial enterprises and unions (production, distribution, services) based in industrial parks and regions", this company is prepared to offer discounts on adjusted balance and arrange an installment plan based on the conditions of the said companies, such as operating license, business permit, work completion, installation of machinery, and also based on the amount of principal payment (50% or 100% of the principal balance).Directive No. 2570/40, dated Apr. 20, 2016, on operating land, building and installations of towns, industrial regions, and technology parks, 2016Tehran Industrial Parks Co.Industrial Park, Production, Industry
62Early Operating Discount:

If the contracting enterprise manages to begin operating earlier than scheduled according to the following conditions, this company shall return 10% of the total contract price from its premature promissory notes:
-Providing construction work completion and operating licenses (the deadline for presentation of the operating license is 12 months for up to 2000 square meters of land, and one extra month for every 300 square meters, and a cap of 30 months)
-On time payment of installment:
-Turning at least 45% of the assigned land into building area in Shams Abad, Abbas Abad, Salariyah, Damavand (2), Paytakht, Kharazmi, Abbas Abad, Charmshahr, Ayeneh Varzan, Dehak, and Parand, and at least 35% in Shahriar, Nasir Abad, Qarchak, Pishva, Firouzkooh, and Bijin Rey industrial parks and regions
-Returning promissory notes on their maturity depending on the activity of the enterprise

Workshops and unions (production, distribution, services) and lands below 1000 m are not subject to this discount.
Directive No. 2570/40, dated Apr. 20, 2016, on operating land, building and installations of towns, industrial regions, and technology parks, 2016Tehran Industrial Parks Co.Industrial Park, Production, Industry