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This page has been created with the aim of providing the people around the world with
the updated Iranianal news. You will find at this page, the latest developments in respect
of the enactment in Iran.

News in brief :
-Iranian state owned Rail Ways Company joins to Convention of Cargo Transport by Rail.
-Customs Duties for imported goods reduced
-Amendment of Taxation Law
-Forex repatriation for exporters abandoned.
-Iran ratified the Madrid Convention Concerning the International Registration of Marks.
-Iranian parliament ratified the Convention on the Recognition and Enforcement of
Foreign Arbitral Awards.

News in detail:

Iranian Rail Ways Company joins to Convention of Cargo transport by Rail.
Iranian Parliament known as "Majles" approved the law of joining Iranian government to the
Convention of Cargo Transport by Rail (S.M.G.S.) on February 13, 2002. The law published
in the official gazette issue 16634 dated April 10, 2002.

Customs Duties for imported goods reduced
Iranian parliament approved the Law of Addition of three notes to the Article 2 of the Law
of Customs Affairson March 10, 2002. By virtue of this enactment, customs duties applying
on all imported goods shall be reduced to 1% of their C.I.F. value. The customs duties ranged
from 2% to 3% for various kinds of goods prior to enactment of aforesaid law. The law published
an Official Gazette issue number 16634 dated April 10, 2002.

Amendment of Taxation Law
Iranian Taxation Law amended by the parliament on February 16,2002 with the aim
of adjusting reasonable tax rates and encouraging local and foreign investments in Iranian
market. The law came into force on March 21, 2002 (the first day of Iranian fiscal year).
All corporate applying march 21, as the commencement of their fiscal year will be subject
to the new tax rates. All rules and regulations in contradiction with the new law, except
tax decrees stipulated in the Law of the Third Five - Year Development Plan as well as
Article 113 of the law of Free Trade Zones have been declared to be null and void.
As far as the international entities and corporate are concerned features of the new law
are explained here below briefly:

-The total income of he companies and other legal entities, whether earned within Iran
or abroad, after deduction of the losses and expenses, shall be subject to a flat rate of 25%.

-Foreign legal entities should pay taxes on incomes resulting from their investments in Iran
as well as their direct and indirect activities ( through agents , branch offices , representatives
etc.) at a flat rate of 25% as specified at Article 47 of the law as amended with following
- Foreign shipping lines and foreign airlines should pay direct tax on the incomes
resulting from transportation of the cargo and passenger from Iran at a flat rate of 5 %.

-Foreign insurance companies, earning profit through reinsurance activities shall pay tax at
the rate of 2 % on the premium collected and on the interest earned on their deposits.

-Foreign contractors working in Iran in the fields of construction, installation works
and related commissioning, transportation, designing plans for building and installations,
topographical surveying, drawing. supervision and technical auditing, training and technical
assistance, transfer of technology and other services, should pay tax at the rate of 12% on
their annual incomes.

-Foreign legal entities who get incomes through the assignment of their licenses and royalties
as well as other rights and ceding of the motive films (get as price , screening rights or
otherwise ) should pay tax as depending on the specific case 20% to 40 % of the total
sum earned within one fiscal year. The basis for applying specific rate for each case shall be
determined later on by the Council of Ministers.

The rates as amended ,vary from 15% to 35% of the annual incomes as follows:

      Annual income                On sums in excess of                  Rate

      Up to Rls.30,000,000         ---------------------                    15%

      Up to Rls. 100,000,000          30,000,000                              20%

      Up to Rls.250,000,000          100,000,000                            25%

      Up to Rls.1,000,000,000        250,000,000                           35%

Those companies, whose shares are offered at stock exchange, shall be exempted from
payment of 10%of the income tax.

Forex repatriation for exporters abandoned

Iranian engaged in the export of the commodities and services (except oil) obliged to
repatriate hard currencies earning from their export activities, and remit the same to the
Iranian banking system at the "export "rate. Exporters were obliged to provide at the time
of export, a special letter of undertakings, accepting to repatriate the proceeds to the bank,
otherwise would be sued in criminal courts. This procedure followed for 8 years.
There was a development 1998. Exporters could purchase and import certain goods as specified
by the proper authorities, by using the proceeds earned by way of export. High Council
for Export Developments finally abandoned the above mentioned procedures on
March 19, 2002. Therefore exporters are no longer obliged to either repatriate the sums
to banking system or use for import of certain goods.

Iran ratified the Madrid Convention Concerning the International Registration of Marks.

The Council of Ministers by virtue of decree dated may12, 2002 ratified the accession of
Iran to the Madrid Convention Concerning the International Registration of the Marks.
Subject to the Madrid Agreement , nationals of any of the contracting parties may , in
other countries already joined to the convention , secure protection in respect of their
marks , as registered in their own countries, by filing the marks at the International Bureau of
the world Intellectual property organization.


Iranian Parliament ratified the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards.

International Convention on the Recognition and Enforcement of Foreign Arbitral Awards
originally negotiated at New York on June 10, 1958 and came to force on June7, 1959
under the auspices of the United Nations. Iranian parliament approved that Iran joins to the
convention recently.