EghtesadOnline: The Iranian National Tax administration has released the names of foundations that are entitled to exemption from paying direct tax as per the decree of the late founder of the Islamic Republic, Imam Khomeini, and Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei.
The list includes the Foundation of Martyrs and Veterans Affairs, the Imam Khomeini Relief Foundation, the Islamic Development Organization, the Islamic Propagation Office of Qom Seminary, the Housing Foundation of Islamic Revolution, the Mostazafan Foundation of Islamic Revolution, the Executive Headquarters of Imam Khomeini’s Directive, Hawzeh Services Center, the Islamic Revolution Cultural-Research Institute and Al-Mustafa International University.
Exemptions granted to these Islamic foundations do not include withholding tax and value added tax, Fars News Agency reported.
The absence of Astan Quds Razavi in the list is conspicuous, according to Financial Tribune.
The exemption for Mostazafan Foundation comes as its chief Mohammad Saeedikia recently said from 2005-6 to 2016-17, the entity has paid more than 47 trillion rials ($328.67 million) in taxes, while 151 out of 179 companies affiliated to the foundation have been rated as “acceptable” by the auditors.
Tax levied on Mostazafan Foundation in the last fiscal year (March 2017-18) stands at 10,492 billion rials ($73.37 million), which will be paid by the deadline, Saeedikia stated at the foundation’s annual general assembly held recently.
"Shares of three out of six companies listed on the stock market in the first half of the current year (March 21-Sept. 22) were those of Mostazafan Foundation," he added.
Kamel Taqavinejad, the head of Iranian National Tax Administration, says tax revenues account for 40% of the government’s public budget.
According to the latest report by the Central Bank of Iran, tax revenues were estimated to hover around 603.3 trillion rials ($4.09 billion) in the first five months of the current year (March 21-Aug. 22), but they reached 429.4 trillion ($2.91 billion) to register a 16.8% increase year-on-year.
The government’s tax revenues consist of returns from direct and indirect taxation. Direct taxes include three groups of “tax on legal entities”, “income tax” and “wealth tax”.
Overall, direct tax revenues stood at 190.4 trillion rials ($1.29 billion) during the five months, registering a decline of 3.4% YOY.
Indirect taxes, including “tax on imports” and “tax on goods and services”, reached 239 trillion rials ($1.62 billion), indicating a 40.2% rise YOY.
The report also shows tax on imports generated 63.5 trillion rials ($430 million), 88.7% more than the year before while tax on goods and services earned the government 175.5 trillion rials ($1.18 billion), up 28.3% YOY.
Value added tax, which is a subcategory of tax on goods and services, increased by 11.9% to reach 110.2 trillion rials ($747.11 million).