Tehran: The head of the Iranian National Tax Administration (INTA) said the rules for the tax on houses and luxury cars will be announced shortly. He added that this annual tax was levied and a heavy fine was imposed on those who flee from it.
Regarding the reason for the delay in approving the statute for the said tax, Omid-Ali Parsa said, “The statute was sent to the government by INTA a long time ago and was recently approved by the government’s economic committee.”
The statutes will be announced in the coming days, and then homes and luxury cars will begin taxing and those who avoid the tax will face heavy fines, the official said.
Last October, the Minister of Transport and Urban Development, Mohammad Eslami, said the ministry had forwarded a list of 194,000 vacant residential units to the Iranian national tax administration in order to tax them under the new vacancy tax law.
The minister said the owners of these houses had been informed of this via SMS.
In September 2020, the Deputy Minister of Transport for Housing and Construction, Mahmoud Mahmoudzadeh, stated that in the first phase of the implementation of the program to collect taxes from the country’s vacant housing units, only units belonging to natural persons will be affected.
The Iranian Parliament (Majlis) had approved the double emergency plan of the vacancy tax law in mid-July 2020.
The aforementioned plan is primarily aimed at lowering the rental price of residential property in the country.
Hossein Hossein-Zadeh Bahraini, member of the Majlis Economic Committee, expressed his approval of the above plan and said: “Our problem in the housing sector is not the higher demand than the supply, while the number of housing units is equal to more than necessary. “
This plan is vital as many families struggle to rent the houses while there are many empty units, the MP continued.
The Vacancy Tax Act as part of the Direct Tax Reform Act was put on the agenda in the Iranian calendar year until March 2016 and was enforceable from March 2017. However, there was little data on the number of vacancies on Mahmoud Alizadeh, a senior INTA official.
Alizadeh said, “Under Article 54 of the Direct Tax Act, a house that has been vacant for more than a year is subject to vacancy tax. Houses with a floor area of around 150 square meters are subject to a tax of 20 percent of the rental value of the property, ”Eghtesad published online on June 20.
With regard to vacancy tax, the INTA manager had previously said: “Empty houses are not taxed in the first year, but in the second and third years they are taxed at 50 percent of the estimated rent of the property. You will be taxed at 100 percent of the estimated rent. “
According to Mahmoudzadeh, a total of 6.6 million households, or 30.7 percent of the country’s 18.1 million urban households, live in rental apartments.