Commission Approves Income Tax Exemption Rates
EghtesadOnline: The Majlis Joint Commission has decided that government employees who earn less than 360 million rials ($2,769) per year will be exempted from paying income tax as of the next Iranian year (starting March 20, 2020).
Those who earn no more than 30 million rials ($230) monthly will be exempt from paying income tax.
The decision marks the approval of the government-proposed rate for tax exemption in the budget bill it submitted to the parliament on Dec. 8, according to Financial Tribuine.
“Private sector employees who earn less than 288 million rials ($2,215) will be exempt from tax,” ILNA quoted Ali-Asghar Yousef-Nejad, deputy chairman of the commission, as saying on Wednesday.
The decision needs to be approved by the parliament before it is given the go-ahead to be enforced as law by the Guardians Council—a watchdog that ensures laws comply with the Iranian Constitution and Islamic law
The joint commission is a parliamentary body responsible for reviewing the budget bill as well as the five-year economic development plans proposed by the government before its final ratification.
It approved the outlines of the upcoming fiscal year's budget bill on Dec. 25.
"To avoid running a deficit in next year's budget, the joint commission has decided to reform overestimations when reviewing revenue details and reduces expenses," spokesman of the commission, Hadi Qavami, has been quoted as saying by IRNA.