The direct tax, the value-added tax (VAT), and the social security charges in Iran have been on the rise in recent years. This is due to the Iranian government trying to cut its reliance on oil sales by generating new revenue sources. Some of the practices include changing the rates, as well as modifying the scope of the taxes. Hence, having up-to-date knowledge of tax regulations is a necessity for doing business in the Iranian market.
Additionally, the government has been rendering some exemptions and discounts on various occasions to promote investment and production in Iran. Being aware of such opportunities would indeed save many costs both for local and international businesses.
Thus, it is crucial for foreign companies to, first, understand the regulations applicable to their business and to make their entry decisions in such a way to manage their expenses and increase their margins efficiently.