Iran’s Tax System: a Brief Overview

Interest in various aspects of the Islamic Republic of Iran’s functioning is growing amid the prolonged negative economic consequences of foreign sanctions. The primary source of state revenue is tax revenue, a key element of any financial system. This article examines the specifics of Iran’s tax system, including the interaction of religious legal principles and modern fiscal mechanisms, and focuses on the provisions of tax legislation. Particular attention is paid to the structure of direct and indirect taxes, the specifics of determining the tax base for various income categories, and specific aspects of legal tax regulation. The final section examines the tax dispute resolution system, characterized by a multi-stage procedure and the participation of collegial bodies. It concludes that the Iranian tax regulation model is highly institutionalized, owing to a combination of religious, legal, and economic factors.

1. Винницкий Д. В. Субъекты налогового права. — М. : Норма, 2000. — 192 с.

2. Королева Л. П. Трансформация налоговой политики в условиях смены антисанкционной стратегии Ирана // Финансовый журнал. — 2026. — № 1.

3. Пономарева К. А. Правовой режим налогообложения прибыли юридических лиц и доходов физических лиц в Российской Федерации и Европейском союзе: сравнительно-правовое исследование : дис. ... д-ра юрид. наук. — М., 2020.

4. Akhtar S. Islamic Banking System in Iran : A Critical Review. — Islamabad : International Islamic University, 2021. — 24 p.

5. Ameli S. A., Rafiei Pishevari I. Analyzing Payment Rates in Zakat and Khums: An Approach for Iran’s Tax System // Journal of Economic Essays: An Islamic Approach. — 2024. — Vol. 21. — No. 44. — P. 129—151.

6. Bazaz S. B., Hajipour A., Taheri M. A. Over View of the Pledge of Tax Procedure to the Fair Trial Principles in Iran // Journal of Law and Ethics. — 2015. — No. 5. — P. 80—86.

7. Bidoki S. M. R., Jafari M. H., Mirhoseini S. M. Legal Challenges of Good Governance in Iran’s Taxation System // Legal Studies in Digital Age. — 2025. — Vol. 4. — No. 1. — P. 1—10.

8. Gadžo S. Nexus Requirements for Taxation of Non-Residents’ Business Income: A Normative Evaluation in the Context of the Global Economy. — Amsterdam : IBFD, 2018. — 408 p.

9. Hasanzadeh Sarvestani H., Etemadifar A. Investigating the Organization of Zakat in Iran with Emphasis on Zakat Law and Regulations // Islamic Finance Researches. — 2023. — Vol. 13. — No. 2 (Serial 28). — P. 219—276.

10. Jahan-Parvar M. R. The First Budget of a Free Iran: Building a Foundation for Prosperity. — Iran : NUFDI, 2026.

11. Imam Sayed Moustafa al-Qazwini. Inquiries About Shi’a Islam. — 2nd ed. — California : The Islamic Educational Center of Orange County, 2005.