What are payroll taxes in Iran?

Tax rates

1. The standard corporate income tax rate in Iran is 25%. Companies that are quoted on the Stock Exchange and Commodity Exchange are eligible to a reduced corporate income tax rate of 22,5%.
2. A withholding tax rate of 3% applies to payments made by companies:(1) to service providers;and (2) for rental payments.
3. The final transfer of real property is taxed at 5% and the transfer of goodwill is taxed at 2% on the transferred goodwill’s value.

Personal income tax rates

1. According to the new employment income tax law that came in force in March 2015, employees are exempted from taxation on employment income if their annual taxable income is less than 4.090 EUR. A 10% tax is levied on employment income amounting between 4.090 EUR and 28.600 EUR. The annual employment income exceeding 28.600 EUR is subject to 20% tax.
2. Business and professional income derived by individuals are taxed following a progressive tax scheme. The maximum tax rate of 35% is applied on annual business or professional income that exceeds 32.500 EUR.