What are the rules of taxation for representative offices of foreign companies?
In accordance with Article 105 of the Law of Direct Taxation, foreign legal entities must pay taxes on all taxable income earned through investment in Iran or from direct or indirect (agents, branches, etc.)activities. Since taxable corporate income is assessed by inspecting the statutory account books, representatives and branches of foreign companies are obliged to maintain such books. Submission of tax declarations and payment of taxes of the entities whose central office is located outside Iran, must be carried out by their agents and representatives in Iran.
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