Article 85 of the Direct Taxes Law

The income tax rate of government and non-government employees’ salaries in excess of the amount mentioned in Article (84) of this law and up to seven times that amount is subject to an annual tax of ten percent (10%) and twenty percent (20%) for the excess.

* Pursuant to paragraph (17) of the single article of the law amending the direct taxes law approved on 04/31/1394, the text of this article has been replaced. (date of implementation from 01/01/2015)

The evolution of the direct taxes law related to Article 85:

**** According to Article (31) of the law amending articles of the direct taxes law. Approved on February 27, 2018. The text of this article has replaced the previous text. (Date of execution from 1381)

* Law of the fifth five-year development plan of the Islamic Republic of Iran approved by the public meeting dated 10/15/1389 of the Islamic Council, Article 52; The tax exemption limit subject to articles (84) and (85) of the Direct Taxes Law is determined in the annual budget during the program each year. Also, in Article (85) of the aforementioned law, instead of the phrase included in the Coordinated Payment System Law approved on 12/6/1370, the phrase ministries and institutions. and other government agencies subject to Articles (1) and (2) and the last part of Article (5) of the Civil Service Management Law as well as other executive bodies subject to Article (5) of the Civil Service Management Law and Article (5) of the Public Accounts Law in case of implementation of the chapter 10th Civil Service Management Law and its subsequent amendments and additions. Judges. Faculty members of universities and higher education and research institutes are replaced.

Salary income tax rate for employees of ministries and institutions. and other government agencies subject to Articles (1) and (2) and the last part of Article (5) of the Civil Service Management Law as well as other executive bodies subject to Article (5) of the Civil Service Management Law and Article (5) of the Public Accounts Law in case of implementation of the chapter 10th Civil Service Management Law and its subsequent amendments and additions. Judges. Faculty members of universities and higher education and research institutes after deducting the exemptions stipulated in this law at a flat rate of ten percent (10%) and in the case of other salary earners also after deducting the exemptions stipulated in this law up to the amount of forty two million (42,000. 000) Rials at the rate of ten percent (10%) and the excess will be at the rates prescribed in Article (131) of this law.

Law amending articles of direct taxes law. (Approved on May 7, 1371 by the Islamic Council) (date of implementation from the first of the year 1371): Article 21- In Article 85, after the wording of Article 131 of this law, the phrase “or at the rate of 10%” is added as the case may be.

* Law of direct taxes. Approved on March 3, one thousand three hundred and sixty-six by the Islamic Council (implementation date from the first of 1368): Article 85- Salary payers are obliged to pay the due tax based on the annual taxable income after deducting the prescribed exemptions during each payment or allocation. In this season, calculate and deduct according to the rate prescribed in Article 131 of this law and submit a list containing the name and address of the payees and their amount to the tax area of the place of payment within thirty days and only make changes in the following months.

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This post is written by Hamidreza_1984