Administrative Justice Court Voids a Tax Exemption on High-Value Homes

Iran's Administrative Justice Court has annulled, from its date of issue, a circular by the National Tax Administration that exempted certain parties from the tax on high-value homes and properties. According to Mehr News Agency on Monday, 6 Mehr 1405 (September 28, 2026), the tax administration had, through its interpretation of the rules, removed the entities covered by Article 2 of the Direct Taxation Act from the scope of the high-value property tax.

The court ruled that the tax administration had no authority to create a tax exemption through administrative interpretation, since any exemption must rest on a provision of law. As a result, parties that the law makes liable for the tax on high-value homes and properties cannot be exempted on the strength of this circular alone. The annulment applies from the date the circular was issued.