IRAN after S anctions 2016 April - 14 The country of Iran, at a - - PowerPoint PPT Presentation
IRAN after S anctions 2016 April - 14 The country of Iran, at a Glance Industry, Resources GDP HR Iranian Calendar Opportunities and challenges Iran's financial system Banks Currency exchange International
2016 – April - 14
after
The country of Iran, at a Glance Opportunities and challenges
Iran's financial system Foreign Companies in Iran , Free Trade zones Eurofast Global In IRAN
Intellectual Property , Employments , Courts in IRAN
The country of Iran, at a Glance
TEHRAN IRAN
Borders with 7 countries
Urban 8.8 millions Metro 15.2 millions
Tehran (+3.5 GMT)
North : Caspian Sea South : Persian gulf and gulf of Oman
Tehran hosts
45%
IRAN Resources
reserves in the world 4th producer in the world reserves in Global natural reserves in the world producer in the region 9th producer in the world 8th in the world 15% of the world’s proven gas reserves
Iran’s petrochemical exports to over
60 countries in 2011 reached $14Billion USD.
in Oil and Petrochemicals in Natural resources
Largest economy in the world
th
5 th
Ecotourism
10 th
Rating in the historic attractions
4 th
in Variety of agricultural products 11 petro mechanical complexes 11% of the world’s proven oil reserves Producer in the world
Zinc Gas Copper Cement Crude Oil
Ranking of Iran in other Sectors
IRAN Industry Sectors
Oil & Gas Industry & Mining Transportation Agriculture ICT Tourism Health 32,20% 33,40% 35,90% 53,00% 55,40% 59,60%
0% 10% 20% 30% 40% 50% 60% 70%
Annual Industry Return on Equity June 2014
Professonal Services ; 2,10% Investment Groups; 2,20% Pharmaceutica l; 2,40% Auto Manufacturing; 2,90% Telecom; 6,90% Metal Industry; 11,30% Banks; 11,70% Financial Services; 14,60% Other Industries; 20,90% Petro Chemicals; 24,30%
Iranian Industries Market Capitalization June 2014
Agriculture 10% Industry 44% Manufacturing 11% Services 45% GDP growth +4.3% (IMF, 2014 est.) GDP Nominal: $416.5 billion PPP: 1.357 trillion GDP by component
Household consumption (45.4%) Government consumption (14.1%) Gross fixed investment (31.1%) Investment in inventories (1.2%) Exports of goods/services (20.8%) Imports of goods/services (−12.7%)
Inflation (CPI)
9.6% (Jan 2016)
GDP Components
Agriculture 25% Industries 31% Services 44%
80.555.939
Current Population
(2016-04-03)Field of study 2010
Engineering and construction
31%
Social science, business and law
23%
Humanities and arts
14%
Science
10%
Human Resources
Young Society
0-14 years: 23.7% 15-24 years: 18.7% 25-54 years: 46.1% 55-64 years: 6.3% 65 years and over: 5.2%
One of the highest rate in the world
Solar Hijri calendar
Fiscal year
21 March
Saturday – Wednesday : 8 hours Thursday : some companies/ state Offices/ universities are off or working only 6 hours Friday : week-end Holiday
Iranian Calendar
S M T W T F S MARCH
Iranian
Calendar Working Days
S M T W T S S M T W T F S
IRAN EUROPE
F
New Year : 21 March
(Each 4 years will be on 20 March)
Opportunities and challenges for investors Challenges Opportunities
sometime is unclear
Banks in IRAN
Governmental
Commercial banks
Governmental
Specialized banks
Private banks
Investment institutions (7)
(Euro, Dollar, ext.)
(Without Interest rate)
(approximately 17%)
Bank Account Types
Bank Account Types in IRAN
Account Opening
director and authorized signatories.
General Conditions for Individual
Foreign Individual Foreign Legal Entity
and regulations
General Conditions for Legal Entity
Currency exchange
Banks
– Lower exchange rate – Limitation
Up to a USD 5000
(In special cases up to USD 10000)
– International Transaction
Impossible or very limited now (Bank swift is in reconnecting process)
Iranian currency : Rial (IRR)ریام
$ €¥
Currency exchange
– Higher exchange rate – No limitation
Send to Any Account in the world
Usually 1 or 2 working days, Maximum 3 days
International Transactions Solution
IRR
ریام$
€¥
Exchange Offices Any Bank in the World money
Internet Banking
Pay to Exchange offices online
E-Banking services
Taxation System
Fiscal year : 21 March
Maximum 4 months after fiscal year Tax declarations:
General Individual Tax Rates Salary Tax Rates
annual taxable income Rate
Up to IRR 138,000,000 US$ 5,000
0%
Up to IRR 966,000,000 US$ 32,500
10% of the excess over
Over IRR 966,000,000 US$ 32,500
20% of the excess over
The Iranian Tax Regime
Direct Taxes Income Taxes Real Estate Income Tax Employment Income Tax Business & Professional Income Tax Corporate Income Tax Tax on Incidental Income Property Taxes Tax on Transfer of Real Properties Inheritance Tax Stamp Duties Indirect Taxes Value-added Tax Tax on Imports
Income in IRR Rate
Up to 30,000,000 (US$1,230)
15%
30,000,000 to 100,000,000 (US$4,767)
20%
100,000,000 to 250,000,000 (US$9,917)
25%
250,000,000 to 1,000,000,000 (US$36,666)
30%
In excess of 1,000,000,000 (US$36,666)
35%
Business Activity Ex- emption Duration Agriculture 100% Perpetual Industry and Mining 80% 4 Years Industry and Mining in Less-Developed Areas 100% 20 Years Tourism 50% Perpetual Export of Services & Non Oil Goods 100% During 5th Development Plan Handicraft 100% Perpetual Educational & Sport Services 100% Perpetual Cultural Activities 100% Perpetual Salary in Less- Developed Areas 50% Perpetual All Economic Activities in Free Zones 100% 20 Years
Taxation system for foreign investors in Iran
Similar to Local invertors
Taxation System Exemptions
List of Countries Signed the Agreement to Avoid
Double Taxation with Iran
Double Taxation Agreement
On April 28, 2004, Bulgaria and Iran signed agreement for the avoidance of a double taxation which entered into force two years later, in June 2006 and is applicable as of 2007. An interesting aspect of the treaty with Iran are the withholding tax rates, with dividend payments taxed with 7.5 % of the gross amount and interest and royalty payments taxed with a maximum 5 % rate. Worth noting is the exemption of a tax
Double Tax Treaty Agreement
2004 2006 2007
Double Tax Treaty Agreement
4th August 2015
5% withholding tax on dividend paid
Provision for 6% withholding tax rate on the gross amount of royalties, again on the grounds that the recipient is the beneficial owner of the royalties.
if the Beneficial Owner of the dividend is a Company [other than a partnership] holding a minimum of 25% of the Capital of the dividend-paying Company
In all other cases 10% withholding tax on dividend paid The withholding tax rate on interest is not to exceed 5% of the gross amount, on the grounds that the recipient is the
beneficial owner of the interest. However, Cyprus does not levy withholding tax on interest currently.
Dividends Interest Royalties
2010 2011 2012 2015
electronic registration system Web portal for entrepreneurs to search for and reserve a unique company name Criminal record clearance is required for register a new company Streamlining the name reservation and company registration procedures
Easier Easier
and
Saf Safer er
Registering Companies in IRAN
Legal Activities in Iran
between the parties with or without formation of company.
for Foreigners
Foreign Direct Investment (FDI) Contractual Schemes Foreign Portfolio Investment (FPI) Representative and Branch
1. " After -sales services " for Goods or any services. 2. To implement the contents of contracts enacted between Iranian and foreign companies. 3. To study and preplanning for investment in Iran. 4. To cooperate with Iranian technical and engineering companies to work in third states. 5. To extend non – oil exportation from Islamic Republic of Iran . 6. To give technical and engineering services and to transfer technical and technological knowledge. 7. To perform activities like transportation, Goods auditing , banking , marketing and other services that could be permitted by qualified organizations in Iran.
Free Trade/Special Economic Zone
Free Trade Zone
1. Kish free zone 2. Qeshm Free Zone 3. Chabahar Free Zone 4. Aras Free Zone 5. Anzali Free Zone 6. Maku Free Trade Zone 7. Arvand Free Zone
Special Economic Zone
1. Salafchegan special economic zone 2. Shiraz special economic zone 3. Assaluye special economic zone 4. Arge Jadid special economic zone 5. Payam Airport special economic zone 6. Persian Gulf special economic zone 7. Lorestan special economic zone 8. Amirabad port special economic zone 9. Bushehr Port special economic zone
Industrial Property Laws of Iran Carry Out the Following Acts
Stockholm (1967 & 1979).
International Registration.
Act 1958 ("the Regulations”).
2000).
in E-Commerce (on the Internet) (2003).
Protection of Industrial Property
appellations of origin; Intellectual Property and Registering in Iran
Intellectual Property
Employment of Foreign Nationals in Iran
Validity Period of Work Permits One Year Extension of Work Permits One Year Renewal of Work Permits
Court System & Dispute Resolution
(public courts with jurisdiction over civil and the majority of criminal cases)
Courts of Iran Courts of First Instance Appellate Courts The Supreme Court
International Chamber of Commerce(ICC) in Paris
More than 50 Bilateral Investment Treaties (BITs)
The Iranian Chamber of Commerce, Industries and Mines The Tehran Regional Arbitration Centre (TRAC)
Major Dispute Resolution Institutions
IRAN
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after sanction
In IRAN
Services Advantages Eurofast in IRAN
Conclusion
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Your Regional Business Advisory Organization SEMINAR
May 9, 2016 | Simorgh Hotel | Tehran, Iran
AGENDA
KEY FACTORS TO CONSIDER WHEN CHOOSING A JURISDICTION WHICH VEHICLE FOR WHICH PURPOSE? OFFSHORE BANKING CITIZENSHIP AND RESIDENCY IN CYPRUS, GREECE, BULGARIA AND MONTENEGRO ENTERING THE EUROPEAN MARKET; INVESTMENT OPPORTUNITIES IN SOUTH EAST EUROPE
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