Are all the activities of branch or representative offices liable to taxation?
Branches and representatives of foreign companies which have been registered in Iran, and by virtue of their articles of association are not authorized to engage in profitable activities but can do marketing and collect economic information, are not liable to any taxation on the sums received from the mother company in the form of revolving funds. However, if it is proven that the said branches and representatives are engaged in profitable activities in Iran and are acquiring an income therefrom, the sums earned shall be subject to taxation.
