The decision of the General Board of the Court of Administrative Justice on the subject of petition No. 73 dated 01/27/2018 is sent for information and necessary action. According to the said decision, the text of the decision No. 601 dated 12/09/1389 of the General Board of the Court of Administrative Justice regarding the annulment of Circular No. 33553 dated 12/04/1387 will be as follows:
“Considering that the examples of salaries and benefits subject to tax deduction, the subject of Article 82 of the Direct Taxes Law, are counted as job-related benefits in Article 83 of the same law, and the welfare services and facilities that are listed in Article 40 of the Law on Adding Articles to the Law of Regulating Part of Government financial regulations (1380/11/27) approved on 08/15/1384 have the permission to pay the benefits related to the employee and are not included in the titles of salaries and benefits mentioned in Article 83 of the Direct Taxes Law, therefore the funds paid to salary earners are under Titles of kindergarten, food subsidy, travel and transportation, bin goods and so on. As examples of Article 40 of the aforementioned law, the subjects are outside the scope of the provisions of Articles 82 and 83 of the Direct Taxes Law, and the theory No. 256/20100 dated 10/06/1389 of the Court of Accounts of the country confirms this. Finally, the contested circular is found to be against the law and beyond the powers of the country’s tax affairs organization, and based on the second part of article 170 of the Constitution of the Islamic Republic of Iran and paragraph one of article 19 and article 42 of the Law of the Court of Administrative Justice, it is annulled.
Therefore, the funds that are paid for kindergarten, food subsidy, travel and transportation, and goods storage in the implementation of Article 40 of the above-mentioned law or based on the employment regulations of the institution within the normal limits or providing documents and documents to all employees, are included in the provisions of the article 82 and 83 of the Direct Taxes Law are foreign and not taxable.
As it is clear, the things that are explicitly stated (including childcare allowance, food, traveling and goods) and because after the goods, it is written. The examples of Article 40 of the Annexation Law have been given and stated, in which Article 40 of the Annexation Law also mentions welfare facilities and encouraging employees and housing allowances in cash or other forms. In this way, in addition, things such as childcare allowance, food, transportation and storage of goods are not outside the scope of Articles 82 and 83 of the Direct Taxes Law, and in other words, they are not subject to salary income tax calculation. Also, according to the conclusion, the housing right is outside the scope of articles 82 and 83 and is not subject to tax.
This post is written by Koroshkhosravifar