دات نت نیوک

Incentives

Legal Incentives for the Investment in the Free Zones

Regulations on Foreign Investment in Free Zones

  • Foreign investors can invest in economic activities in the Zone in any proportion.
  • Foreign investors’ requests received in any Zone will be reviewed by the Organization of the same Zone and the investment license will be issued by the same Zone.
  • The owner of the investment is obliged to import the specific percentage of the capital to the Zone within a period of time set in the investment license to start the operations specified in the investment license.
  • The operating of the activity stipulated in the investment license is subject to the issuance of operating license by the Free zones Organization.
  • Foreign investors in the Free Zones are entitled to enjoy the privileges of the Foreign Investment Encouragement and Protection Act in Islamic Republic of Iran.
  • The investor can insure the capital which was imported to the Zone. In case of any accident, if the insurance institute becomes the successor of the investor based on the regulations of the insurance policy, this succession is known valid by indemnifying the insured for the damage; however, this is not considered as a capital transfer.
  • Taking specific profit and the money related to the origin and the benefits gaining from economic activities of the foreign capitals as well as the money gained from selling or assigning these capitals out of the Zone is permitted.
  • The investors are allowed to assign the shares or their own shares to other investors if the Free zones Organization agrees. In this case, the assignee will be the successor of the first investor in any respects.
  • The dispute cases between the foreign investor and Iranian party shall be settled according to the written contracts and agreements.
  • Foreign investors can invest in economic activities in the Zone in any proportion.

Exemption from paying direct taxes on income and property

  • Any natural or legal persons engaged in various economic activities in the Trade-Industrial Free Zones are exempt from paying tax for 20 years on income and assets subject to the Direct Taxes Act since the operation day stipulated in the license for any economic activities in the Free Zone.

Exemption from the payment of Value Added Tax on commodity and services within the limits of the Free Zones

  • Transferring the commodity (purchasing and selling) within the territory of any Zone is exempted.
  • Running services within the territory of any Zone is exempted.
  • By getting permit from the Free zones Organization, providing the contract services of non-residents to the residents in any Zone is exempted from paying the tax subjected to the Value Added Tax (to the amount of the services performed).
  • Exporting commodity and services from the Zone to abroad is exempted.
  • Importing the commodity and giving services to the mainland are subjected to the rules and regulations of the Value-Added Tax.

Regulations on Exports, imports, and customs in the Free Zones

  • Overseas trade transactions of the Zones and/or transactions with other Free and Special Economic Zones, as well as transactions within the geographical territory of any Free Zone are subjected to the regulations on the Export, Imports, and Customs of the Free Zones and executed within the framework of the Law on Administration of the Free Zones.
  • The order of the goods imported to the Free Zones, with the minimum formalities, is incompliance with the regulations designated by the Free zones Organization.
  • The importation of any good to the Free Zones is allowed with the exception of the goods that are forbidden or illegal as per the Islam orders, or under the rules of the state where the name of the Free Zones is stipulated in, or according to the special regulations of the Free Zone.
  • Importation of the goods by the purpose of storage, distribution, re-exportation, transshipment, and foreign transit to the warehouses run under the control of the Organizations of the Free Zones is permitted within the specific deadlines (set by the Organizations of the Free Zones).
  • The exportation of the goods manufactured in the Zone to foreign countries or other Free Zones of the country is authorized, regardless of whether the raw materials used in their production are originated from inside the country, foreign countries or other Free Zones of the country.
  • Returning back of the very goods imported to the Zone from abroad, or returning back of the goods imported from other parts of the country into the Zone is permissible in accordance with the permit of the Zone Authority.
  • The importation of the goods manufactured or processed in the Free Trade-Industrial and Special Economic Zones is allowed without any limitations amounting to the permitted percentage of goods importation determined by Commission setting the added value based on the total added value, the used material and domestic parts to the total price of the produced good. Furthermore, there is no need to register the order or open any letters of credit and it is neither subjected to the unauthorized and limited authorized requirements.
  • Remark: the surplus of the permitted percentage quota of the goods imported to the Zone is subjected to the registration of the order for the foreign material used in the goods.
  • The rights of the imported components and foreign raw material (imported from foreign country to the Zone) used in the goods manufactured or processed in the Trade-Industrial Free Zones and Special Economic Zones will be calculated and applied upon the final product to the country after the subtraction of the exemption gained by the added value (determined by the Commission which sets the added value)
  • Remark: the Commission setting the added value is comprised of a representative from any Free or Special Economic Zones, representative of Customs of Iran, a representative of the Ministry of Industry, Mine, and Trade, and a representative of the Secretariat of the Supreme Council of the Free Zone.
  • The exemption of the production line equipment and machineries (first and second hand) is from payment of the Customs tariffs taken for the entry to the Free Zones.

Visa-Free Residence, Entry, and Departure for the Foreign Nationals

  • For direct entry into the authorized points of arrival and departure in the Free Zone, foreign nationals are there is no requirement to obtain a visa beforehand.
  • A residence permit is issued for the duration of two weeks and may be renewed, up to six months upon the proposal by the Authority.
  • To enter into the Free Zones adjacent to the other parts of the country where direct entry is not possible, foreign nationals have to obtain an entry visa from the Islamic Republic of Iran legations abroad.
  • The request for the issuance of residence permit for the foreign nationals is applied through the Free zones Organizations.

The regulations on Employment of Workforce in the Free Zones

  • It is allowed to utilize the services, expertise, and the skills of the foreign national experts in the workplace located in the Free Zone.
  • Remark: under any circumstances, the proportion of the foreign workers should not exceed more than ten percent of the total staff of the each Zone.
  • The work permit for the foreign nationals is issued at the discretion and by the request of the Organizations of the Free Zones and by the Labor and Employment Services Office.

Company Registration in the Free Zones

  • The registration of a company is permissible with 100 percent foreign ownership in the Companies, and Industrial and Intellectual Property Rights Registry Office.
  • The registration of a company is permissible with 100 percent foreign ownership in the Companies, and Industrial and Intellectual Property Rights Registry Office.
  • The registration of any branch or agency for the foreign legal persons is permissible in the Companies, and Industrial and Intellectual Property Rights Registry Office.

Transferring of the land

  • By the permission from the Free zones Organization, the object of the sale or leasing land contracts is allowed to be transferred to the third party.
  • The necessary time limit for starting and constructing the building is set in the land assigning contracts. In case no action is taken within the aforementioned time limit written in the contract, the Organization can terminate the said contract.
  • Leasing the land to the foreign investors is permitted.
  • Absolute selling and transferring of the land to the foreign nationals is forbidden. In cases where the foreign investments result in the establishment of Iranian company, the land ownership is allowed under the name of the company in accordance with the investment plan and at the discretion of the Organization.

Regulations on Insurance

  • Upon the proposal of the Organization, the insurance and reinsurance operations in the Free Zones are conducted by the institutions registered based on one of the following forms and acquired license from Bimeh Markazi (Central Insurance of IR Iran) of Iran in compliance with the regulations of this bylaw:  The Iranian insurance joint stock or cooperative company cooperating with the Iranian and/or foreign natural or legal shareholders with all their shares in registered form.  Institute and/or insurance agency
  • Upon the observance of the regulations on Establishment and Operation of Insurance Institute and the Regulations on the Registry in the Free Zones, the establishment of a branch by insurance institutes is permissible.
  • The registration of insurance institute subject to the submission of registration permit will be issued by the Bimeh Markazi (Central Insurance of IR Iran) of Iran.
  • Under the provisions of the Act on Establishment of Bimeh Markazi (Central Insurance of IR Iran) and Insurance Operation (including governmental and non-governmental), the insurance institutes are allowed to operate in the Free Zones as one of the following forms:  Establishing a branch and creating an agency by the observance of the Act on Establishment of Bimeh Markazi (Central Insurance of IR Iran) and Insurance Operation.  The establishment of an insurance institute with the cooperation of domestic and foreign natural and legal persons is allowed within the respective regulations.

Regulations on Monetary and banking

  • The banks and institutes, either with Iranian or foreign capitals and/or with the Iranian and foreign cooperation, are allowed to be registered in the Zone.
  • The establishment of a bank, an institute, and operating the branches of the Iranian or Foreign Banks and institutes in the Zone are subject to the proposal of the Zones Organization, the agreement of the Secretariat of the Supreme Council of the Free Zones, issuance of establishment permit by Central Bank of Iran and the registration of the company in the Company Registry Office of the Zones Organization.
  • The establishment of representative offices for Iranian or foreign banks and institutes is subject to the agreement of the Free Zone Organization and the Secretariat of the Supreme Council of the Free Zone, and obtaining the approval of the Central Bank of Iran pertaining to the responsible person in charge of the representative and registry office in the Zone.
  • The capitals of the banks and the institutes can be owned 100 percent by the foreign or Iranian national or the combination of the both.
  • Under the authorized license, the Zone banking units can perform overseas banking operations. The overseas banking units shall not be entitled to perform banking operations and transactions by Iranian Rial. They are acquired to do all their operations and transactions exclusively by foreign exchange.
  • The registration of a bank or an institute in the Zone is permitted in compliance with the regulations stipulated in the Trade Act through public or private joint company with the registered shares.
  • Under the proposal the Organization, the agreement of the Secretariat and the issuance of the license by the Central Bank, a currency exchange can be established.
  • There is a probability of the overseas banks with different international procedures.br />
  • The establishment of a currency exchange in the Zone is subject to the proposal of the Organization and the issuance of the license by the Central Bank.
  • The establishment of the currency exchange is exclusively authorized in a form of general partnership.