The persons listed below are subject to the payment of income tax:
1. All proprietors of property or estate, whether persons or legal entities, that are located in Iran, according to the regulations listed under section 2.
2. All Iranians residing in Iran in proportion to their total income earned in the country or abroad.
3. All Iranians residing abroad in proportion to their income earned inside of Iran.
4. All Iranian legal entities located in Iran, in proportion to their total income earned in Iran or abroad.
5. All non-Iranians (whether persons or juridical) in proportion to their total income earned in Iran, as well as any income gained by granting privileges or other benefits, providing training and technical assistance, and/or transfer of movie rights (which could have been granted financially for screening fees, or under any other titles).
The juridical entities listed below are not subject to the payment of income tax:
1. Ministries and governmental institutions.
2. Organizations whose budget is provided by the government
Note 1: Shares or profits gained by companies for which part or all of their capital belongs to one of the juridical entities or institutions listed above are exempt from this article. This article does not provide any obstacles for the aforementioned companies to qualify for any of the law’s exemptions.
Note 2: Income gained by legal entities mentioned in this article from economic activities such as industrial activities, crafts, mining, commerce, trade, service, and all other production activities for all persons subjected to this law, as a result of activities other than the ones described in the company’s objectives , for each instance, is subject to the payment of taxes mentioned under article (105) of this law.
The authorities of the office of financial affairs in the case of the affairs mentioned above are required to discharge the relevant duties and obligations as per the provisions mentioned in this article. Otherwise, such officials and the taxpayers concerned shall jointly be responsible to pay the applicable taxes.
Note 3: Tax exemptions under this law that have already been recognized by Ayatollah Khomeini or the Supreme Leader of the Islamic Republic of Iran shall be placed under the supervision and discretion of the supreme leader.