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- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Ease Of Doing Business In Brazil
- Business Opportunities In Brazil Section
- Why Use Global Expansion To Hire Your Employees In Brazil
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BASIC COUNTRY FACTS
The Islamic Republic of Iran
Tehran
- Farsi (also known as Persian)
- Azeri
- Kurdish
- Gilaki
- Mazandarani
- Luri
- Arabic
81.8 million
Iranian rial
.ir
+98
Iranian rial
STATUTORY LABOR REQUIREMENTS
Probation Period
- The maximum duration of probation shall be one month for unskilled and semiskilled workers and three months for skilled and specialized workers.
Annual Leave
- A worker's annual paid leave entitlement shall be a total of one month, including four Fridays.
Public Holidays
- Martyrdom of Fatima (28th to 29th January)
- Iranian Revolution (11th February)
- Birthday of Imam Ali (7th to 8th March)
- Oil Nationalization Day
- Nowruz (20th to 23rd March)
- Prophet's Ascension
- Islamic Republic Day (30th to 1st March)
- Birthday of Imam Mahdi (8th to 9th April)
- Martyrdom of Imam Ali
- Eid al-Fitr
- Death of Khomeini (3rd June)
- Revolt of Khordad 15
- Martyrdom of Imam Jafar
- Eid al-Adha
- Event of Ghadir Khumm
- Tasu'a
- Day of Ashura (Shia)
- Arbaʽeen
- Demise of Prophet Muhammad and Martyrdom of Imam Hassan
- Martyrdom of Imam Reza
- Prophet's Birthday
Maternity Leave
- Women employees are entitled to 90 days of maternity leave.
- The employee's salary during maternity leave will be paid according to the provisions of the Social Security Act.
Paternity Leave
- There is no paternity leave
Sick Leave
- The period of sick leave shall be considered a part of the service record and retirement of workers with the approval of the Social Security Organization.
Work Hours
- The workweek in Iran is based on a 44-hour week.
- Typically, employees work from Saturday to Wednesday (8 hours per day) and half a day on Thursday (4 hours).
Overtime
- The Law mandates a payment of 40% above the hourly wage to employees for any accrued overtime.
- The employee must consent to overtime work
Notice Period
- Any worker who resigns shall be required to provide his employer with written notice of his registration, and to continue to work for one month.
Severance
- In the event of termination of the agreement, completion of definite works or expiry of definite agreements, the employer shall be required to pay to a worker who has worked on the job for one year or in excess of it under an agreement, an amount equivalent to one-month salary for each year of continuous or alternate service at the rate of the last salary as severance benefits.
13th Month Salary in Brazil
- No
- There is no statutory requirement to pay the 13th or 14th month salary.
- Employees are entitled to standard holiday allowance.
INCOME TAX
- In Iran, both resident and non-resident individuals are taxed
-
- on the income received from employment relationships within the territory of Iran and
- on all other income received from sources in Iran.
- Iranian tax legislation provides for the exemption of income derived by individuals from
-
- employment relationships in free trade zones
- business activities carried in less-developed regions; and
- profits derived through operating cooperative societies (e.g., rural-area, tribal, agricultural, and fishermen cooperative societies).
- All salaries, wages and allowances paid to individuals (i.e., residents and non-residents working with a work permit in Iran) are subject to a personal income tax.
- The tax rate is as follows: -
|
Income Tax Rate |
|
|
Annual taxable income |
|
|
From IRR 0 to 30,000,000 |
15% |
|
From IRR 30,000,000 - 100,000,000 |
20% |
|
From IRR 100,000,000 - 250,000,000 |
25% |
|
From IRR 250,000,000 - 1,000,000,000 |
30% |
|
IRR 1,000,000,000 and over |
35% |
DEDUCTIBLE EXPENSES
The most important personal deductions are as follows:
-
- donations to approved charities
- social insurance fund contributions (and similar contributions paid abroad)
- life insurance premiums; pension plan contributions; and medical fund contributions.
|
Deductible Expenses |
|
IMMIGRATION
- Temporary Work (type F) visa: - Visa for foreign citizens who have the intention to work in Iran
- The following can apply for a type ‘F’ visa: -
-
- Skilled workers
- Specialists in the fields of medical, industrial
- Engineers
- Investment (type I) visa: - Visa for foreign investors whose investment permit is approved by the Organization for Investment Economic and Technical Assistance of Iran.
- The following can apply for a type ‘I’ visa: -
-
- Merchants
- Investors
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Type ‘F’ visa |
|
N/A |
|
|
Type I visa |
|
N/A |
|
VALUE ADDED TAX
- The standard rate of VAT is 7%
- Excise duties on tobacco products and petrol taxed at rates of 12% and 20%, respectively.
|
VAT |
|
|
Standard Rate |
7% |
|
Tobacco Products |
12% |
|
Petrol |
20% |
WITHHOLDING TAX
Dividends
- Iran does not levy withholding tax on dividends
Interest
- Interest payments are subject to a withholding tax of 0%/5%
Royalties
- Royalties are subject to a withholding tax of 0%/5%/7.5%
|
WHT |
|
|
Dividends |
0% |
|
Interest |
0%/5% |
|
Royalties |
0%/5%/7.5% |
|
Technical Service Fees |
0%/5%/7.5% |
TERMINATION
The employment agreement may be terminated in any of the following cases:
-
- Death of worker
- Retirement of worker.
- Total disability of worker
- Expiry of duration of definite employment agreements and their non-renewal explicitly or implicitly.
- Completion of work in the contracts for specific task.
- Resignation of worker.
- Upon completion of work, all claims arising out of the employment agreement and the period of employment in the above cases shall be paid to the worker, and in the event of his death, to his legal heirs.
- Any worker who resigns shall be required to provide his employer with written notice of his registration, and to continue to work for one month.
- In the event of termination of the agreement, completion of definite works or expiry of definite agreements, the employer shall be required to pay to a worker who has worked on the job for one year or in excess of it under an agreement, an amount equivalent to one-month salary for each year of continuous or alternate service at the rate of the last salary as severance benefits.
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- The fiscal year begins on March 21 and ends on March 20 of the next year according to Iranian calendar.
- The Ministry of Finance and Economic Affairs is the government agency authorized to levy and collect taxes.
EASE OF DOING BUSINESS
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Iran ranked 127th in the World in 2019 in terms of ease of doing business.
