Foreign Investment in Iran - WKO.at · Foreign Investment Board Foreign Investmen t Dep. Foreign...
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Transcript of Foreign Investment in Iran - WKO.at · Foreign Investment Board Foreign Investmen t Dep. Foreign...
Foreign
Investment
in Iran
Outline Policy for Attracting FDI
Why Invest in I.R.IRAN
Organization for Investment, Economic & Technical Assistance of Iran O.I.E.T.A.I
“ Foreign Investment Promotion and Protection Act” (FIPPA)
Foreign Investment Services Center (FISC)
Foreign Investment Licensing Procedure
Incentives of Investment in Iran (Tax, Custom, Free Zones)
The Policy
Contribution to Economic Development
Upgrading Technological & Management Skills
Improving Products with High Quality and Competitiveness in International Scale
Increasing Employment & Exports
Sharing Benefits and Risks on Equal Term without Discrimination
At the Cross Roads of East and West
Why Iran?
Iran as a hub for the CIS/MENA market
Low effective rate of taxation
25% flat corporate tax rate
Tax holidays
No tax on dividends or capital gains
Quality infrastructure
319 airports, 13,000 km railroads
20 Ports
Cheap energy
Electricity @ 1.5 ¢ per kWh
Natural gas @ 1.5 ¢ per M³
Affordable labor
Abundant natural resources
Export promotion incentives
Full tax exemption
Export prize
Duty refund on raw material imports
Soft loans
Why Iran?
Continue…
OIETAI
Founded in June 1975
The main official authority to promote and protect Foreign Investment
Taking care of all issues related to foreign investment such as:
Admission Importation Utilization Repatriation
Ministry of Economic Affairs
& Finance
OIETAI Foreign
Investment Board
Foreign Investmen
t Dep.
Foreign Investment
Services Centre (FISC)
Types of Investments
Direct Investment
(Equity Participation)
in Greenfield & Brownfield Projects
Investment through Contractual Arrangements
(Non-Equity Forms):
Buy Back Arrangements
BOT Schemes
The Legislation
The Foreign Investment Promotion and Protection Act (FIPPA):
• Substitutes Former LAPFI
• Ratified in 2002
• Implementing Regulations of the FIPPA
Centre of Investment and Consultancy Services
Continuous study and investigation of investment barriers, proposing solutions to correct the weaknesses through the approval of new law and regulation.
Developing a map of country’s investment incentives and provincial advantages.
Establishment of investment service centers in Provincial chambers
Holding Training courses, workshops and etc. for corporate managers and companies interested in attracting FI including negotiation, contracting, financial solutions and other related issues in cooperation with UNIDO and institutions like EY, Deloitte ,KPMG and etc.
Continue…
Collection of data from Brownfield and Greenfield plans and categorizing and refining them according to the pattern proposed by the investors.
Preparation and distribution of Investment Guidebook.
Establishing a private Investment fund for the use of private sector in order to secure bank facilities.
Identifying foreign investors and domestic investors and establish a proper link between them.
Proposal for establishing specialized courts for investment disputes.
Features of Investment under FIPPA:
No Limitation on:
Equity Percentage,
Volume of Investments,
Profit Transfer,
Capital Repatriation
Types of Capital Imported
No Import / Export Restriction
Some other Features of FIPPA
Article 35 Services
3 years Multi-entry Visa
3 years Residence Permit
Work Permit
Risks Covered By FIPPA
Currency Transfer
Nationalization &
Expropriation
Government Intervention
and Breach of Contracts
by Government
Foreign Investment Services Center (FISC)
FISC
Tax Organization
Any Organization as per the case
Central Bank
of Iran
Office for registration
Companies & Industrial
Property
Department of Environment
Ministry of Industry, Mine
&Trade
Ministry of agriculture
Ministry of Labor
Ministry of Foreign Affaires
I.R.I Customs Administration
FISC
Facilitation of Issues related to the admission and activities of FDI
Facilitation of official procedures for required permissions & licenses
Coordination with Executing Agencies Related to Foreign Investment
Key Services Offered by FISC
Guidance to foreign investors concerning investment in Iran.
General supervision of foreign investment projects.
Necessary coordination with all relevant authorities, prior to the
issuance of the investment license including:
• the declaration of establishment
• the environment protection license
• the permits for subscriptions to water, electricity, fuel and telephone
• the license for exploration and exploitation of mines, etc.
Continued
registration of joint venture company
registration of order for importation of machinery
and equipments
issues related to importation and repatriation of
capital, customs and tax affairs, etc.
Investment Licensing Procedure
Submission Of
Application
Final License
Issued by Minister
of Economic Affaires
and Finance
Draft License
Communicated
Preparation And
Submission Of a Report
Foreign
Investment
Board
OIETAI
Max 5 Days Max 10 Days
Incentives and Benefits of Foreign Investment in Iran
Tax Incentives Fixed corporate income tax at a flat rate of 25%
Income Tax with Rate of 0.0% Duration of Exemption
Industry, Mining & Services (Hospital & Hotels) 5 Years
Industry, Mining & Services (Hospital & Hotels) in Industrial Parks and Special Economic Zones 7 Years
Industry, Mining & Services (Hospital & Hotels) in Less Developed Areas 10 Years
Industry, Mining & Services (Hospital & Hotels) in Less Developed Areas located at Industrial Parks and Special Economic Zones
13 Years
100% of Income Derived Agricultural Activities Perpetual
100 % of Income Derived From Export of Services ,non-oil goods, agricultural Products Perpetual
Tax Incentives
After the Termination of Tax Holidays Period:
Total Taxable income <= registered Capital 50% of income is free of tax
In less developed areas:
Total Taxable income <= double of registered Capital 100% of income is free of tax
Investment Incentives in Free Zones
7 free Zones in Iran: • 2 in North-West (Aras, Makou) • 1 in North (Anzali) • 3 in South (Kish, Geshm, Chabahar) • 1 in South-West (Arvand)
20 Years Tax Exemption for All Economic Activities No needed Visa for Entrance of Foreigners Custom Exemption for Raw materials and Industrial
machineries of Producing units Possibility of Exporting Products to The Mainland Easy provisions for Re-export and Transit of Commodities
Foreign Investment Office Tel: +98 21 33967755 – 33967075
Fax: +98 21 33967864
Foreign Investment Services Center Tel: +98 21 33967749 – 33967766
Fax: +98 21 33967774
No. 82 Vozara Ave., P.C.: 1511917613 Tehran –
IRAN Tel.: (+98-21) 8871 6708
Fax: (+98-21) 8871 0461 -2 E-mail: [email protected]
Website: www.tccim.ir