The Cabinet announced details of tax incentives for businesses on domestic platforms

The Cabinet of Ministers announced the tax incentives approved by the Parliament to be granted to businesses active on Iranian platforms. Article 6 of the Budget Law of the Executive Regulations states:

It has also been mentioned that if the aforementioned persons do not submit their tax returns for internet businesses by the end of 1400, they will not be deprived of tax exemptions.

According to this decree, all domestic platforms that intend to benefit from tax incentives must register in a portal created by the Ministry of Communications. This regulation also obliges the Ministry of Communications to provide the necessary infrastructure for this task and to introduce the platforms covered by this clause by August 15 of this year.

According to this resolution, the tax incentives intended for businesses active in domestic platforms are given to the income of these businesses if the price of their goods and services are received directly or indirectly from customers through domestic platforms and after deducting the platform fee, it is deposited into the account of the business owners.

In this executive regulation, various duties have been assigned to the Ministry of Communications and natural persons who own domestic businesses and platforms.

Regarding businesses, the first point is that natural persons with businesses on domestic platforms who did not have a tax file until the end of 1401 can benefit from tax incentives.

For this purpose, these businesses must register for this plan with their request or after notifying the tax affairs organization and file their internet business tax file in the tax unit window and complete the related process. Furthermore, they should submit their tax return by the end of the considered period.

Also, natural persons and the owners of these businesses, if they have income from domestic and foreign platforms at the same time, they can use tax incentives if their activities in the domestic and foreign platforms are separated and independent and carried out in separate places.

Another point is that the sales invoices issued by these businesses for each of these activities must be based on a separate address that includes the activity address and the platform address and issued online. Don’t forget that business income on the platform should not be included in their previous tax returns and filings.

The Tax Affairs Organization has also mandated the approved platforms of the Ministry of Communications to have the possibility of reporting and providing information on transactions and performing economic activities by the businesses of natural persons on the platform online.

Also, the platforms must authenticate through the mobile phone number and the national code of the businesses of natural persons active on that platform. The platform must also be able to declare the list of individual businesses it hosts and the income of the individual businesses on the platform.

In the explanation of the other task assigned to the platforms, it is also stated:

Also, the platforms are required to provide the income of natural persons from their business in 1401 and before separately every year until one month after the notification of this regulation. The amount of income for the year 1402 should be sent to this organization by the end of May 1403 as announced by the Tax Affairs Organization.