Page 27 - IRANRptDec20

6.1.1​ Budget dynamics - tax issues, revenues
Iranian parliament approves “empty home” tax
Iran’s president pushes for passing of double taxation
Iran’s parliament, the Majlis, has approved revisions to Article 54 of the Direct Tax Code with an eye on moving on to the market thousands of empty apartments and other homes including villas across the country, IRNA reported.
Lawmakers want a fee to be charged on empty homes to encourage owners and property speculators to at least rent them out. In Tehran alone, entire blocks are unpopulated, with owners often choosing to leave new apartments empty as a selling point, hoping to earn more money from an unused flat rather than a used one.
As part of the legislative amendment, empty homes in towns and cities with a population of over 100,000 will be taxed after four months based on their assessed monthly rental income tax.
As further leverage to prompt market change, owners of empty properties will be charged six times more than the standard rental price in the first year if the property is not rented or sold.
If the property is not offloaded by year two, the owner will be charged 12 times the average rental cost, and the chare moves up 18 to times the rental income in the third year.
The rules also stipulate that builders have 12 months from the point the municipality signs off the building as constructed to sell their property without the added tax.
The government’s new national homes database will be the basis of the system, with all homes required to be registered with one owner from the same family.
The system has also been designed in a way that should prevent families offloading properties to spouses or siblings. The new rules do not seem to target localities on the Persian Gulf, such as Kish Island, or the Caspian Sea resorts in Iran which are strewn with second homes and seaside villas.
Iran’s Ministry of Economic Affairs and Finance is working on pushing forward legislation on avoiding double taxation with India at the request of President Hassan Rouhani, according to Mehr News.
27​ IRAN Country Report December 2020 www.intellinews.com