Head of Iran's tax administration announces a bill to amend free zone tax exemptions

The head of Iran's tax administration announced that a bill has been submitted to amend the tax exemptions granted in the country's free zones. He said the aim is to prevent abuse and tax evasion by some individuals operating in the free zones. The announcement was published on Tuesday 28 July 2026 (6 Mordad 1405).

Tax exemptions in the free trade and industrial zones have long been debated in Iranian tax policy. They serve on one hand as a tool for attracting investment, and on the other as a potential channel for registering mainland economic activity in a free zone in order to claim the exemption. Changing these exemptions could affect companies with operations or a registered unit in the free zones, including listed companies.