Iran inks taxation agreement with 28 countries
Agreements to cut double taxation have been signed between Iran and 28 countries, said the director of Technical Taxing and International Treaties Bureau of the Iranian National Tax Administration.
Islamic Republic of Iran News Network (IRINN) quoted Amir-Hassan Ali-Hakim as saying, "final steps are underway with Algeria and Morocco as well to cut double taxation".
He added that in line with the government's policy to expand economic relations with African nations talks are in progress with Kenya and Senegal to eliminate double taxation.
The taxation director pointed out that gaining official facilities and discounts in investments, exporting engineering services, receiving and granting loans, creating jobs and attracting capital are the outcome of such agreements.
The double tax avoidance agreement (DTAA) is essentially aimed to promote and foster economic trade and investment between the various countries.
Many nations make bilateral double taxation agreements with each other. In some cases, this requires that tax be paid in the country of residence and be exempt in the country in which it arises. In the remaining cases, the country where the gain arises deducts taxation at source (withholding tax) and the taxpayer receives a compensating foreign tax credit in the country of residence to reflect the fact that tax has already been paid.