Iran’s tax year begins on March 21 and ends on March 20 of the following year. The Ministry of Finance and Economic Affairs levies and collects taxes from Iranian citizens. Taxable income comes from a set range of categories that are each taxed separately: salaries (public sector employees are subject to a 9% tax, for workers in other sectors, income tax is up to 35%); income from professionals, trades and miscellaneous sources; incidental or windfall earnings; real estate income; and income derived from agriculture.
Expats working in Iran must also pay income tax based on their salary. However, according to the British Iranian Chamber of Commerce, the Iranian government “assumes” a certain salary for foreign workers that is based on their seniority and their country of origin. The “assumed” monthly minimum salaries for European employees range from 2,500 USD for the unskilled to 7, 000 USD for European senior directors. The income of expatriates is taxed at 35%. Expats are not permitted to leave the country unless they provide evidence that they have paid their taxes.