EghtesadOnline: The new tax regulations on housing activities, which replace old tax laws with pragmatic and precise regulations, will provide financial benefit for both builders and buyers, says the chief of Iranian National Tax Administration.
“Previous laws obliged builders to pay 10% of the total value of the property in tax, but new regulations require builders to pay tax only on their profit from the sale of a new house,” Seyyed Kamel Taqavinejad was quoted as saying by Mehr News Agency. As per the new code, if a builder incurred losses, he will not have to pay tax. According to the scheme, private builders will have to pay 15% and 20% tax if the profit from the sale of a new house is 500 million rials ($13,400) and 500-1000 million rials ($134,000-$268,000) respectively. The tax for profits higher than these will be 25% for every one billion rials in extra profits ($26,800). The official noted that from property tax revenues, about 14 trillion rials ($375million) were distributed to municipalities during the year to March with Tehran having the lion’s share at four trillion rials ($108 million), Financial Tribune reported.