Article 131- The personal income tax rate is as follows, with the exception of cases that have a separate rate according to the provisions of this law:
1- up to five hundred million (500,000,000) rials of annual taxable income at the rate of fifteen percent (15%)
2- Regarding the surplus of five hundred million (500,000,000) rials up to one billion (1,000,000,000) rials of annual taxable income at the rate of twenty percent (20%)
3- In relation to the excess of one billion (1,000,000,000) rials of annual taxable income at the rate of twenty-five percent (25%)
Note- For every ten percent (10%) increase in the declared taxable income of the persons subject to this article compared to their declared taxable income of the previous year, one percentage point and a maximum of five percentage points will be reduced from the mentioned rates. The condition for enjoying this discount is to settle the tax debt of the previous year and submit the relevant tax declaration within the deadline announced by the Tax Affairs Organization. (1)
1. Pursuant to paragraph 30 of the single article of the law amending the law on direct taxes, approved on 4/31/2014, this text and its note replaced article (131) of the law.
Article 131 – The rate of income tax for natural persons is as follows, with the exception of the cases that have a separate rate according to the provisions of this law:
up to thirty million (30,000,000) rials of annual taxable income at the rate of fifteen percent (15%),
Up to the amount of one hundred million (100,000,000) rials, the annual tax is subject to the excess of thirty million (30,000,000) rials at the rate of twenty percent (20%).
up to the amount of two hundred and fifty million (250,000,000) rials of annual taxable income compared to the excess of one hundred million (100,000,000) rials at the rate of twenty-five percent (25%),
up to one billion (1,000,000,000) rials of annual taxable income compared to the excess of two hundred and fifty million (250,000,000) rials at the rate of thirty percent (30%),
Regarding the surplus of one billion (1,000,000,000) rials of annual taxable income at the rate of thirty-five percent (35%).
Note of this article, for every 10% increase in the income of natural persons compared to their last year’s income, one percentage point and a maximum of five percentage points will be reduced from the mentioned rates.
In this resolution, it is also stated that the condition for enjoying this discount is to settle the tax debt of the previous year and submit the relevant tax declaration within the deadline announced by the Tax Affairs Organization.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ