Tax Authority Drops Past-Debt Settlement Condition for Instalment Plans on 1404 Business Taxes

Mohammad Nouri, head of the self-assessment development office at Iran's National Tax Administration, told Tasnim, as carried by Ecoiran on Monday, October 26, 2026, that taxpayers no longer need to have settled past-year debts to use instalment plans for their 1404 taxes. Business owners have until the end of Aban to settle their 1404 tax files.

Under the arrangement, a flat tax is calculated under the note to Article 100 of the Direct Taxes Act, and accepting it is not mandatory: a taxpayer can file a return instead. Forms become available on the tax portal after a text message, and uploading, starting with lower amounts, is to finish by mid-Aban. Nouri added that automatic adjustments have been built in for war damage and last winter's events, by activity type and region, and that taxpayers can state that part of their transferred cheques relate to non-business activity.