Foreign Branches and Representative Offices Obliged to Render Audited Financial Statements
Nourlaw.com-Tehran- 15 January 2017- In compliance with Article 272 of the Direct Taxation Act, all the branches and representative offices of foreign companies which have been registered in Iran in accordance with the Law for Allowing the Registration of a Branch or Representative of Foreign Companies of 1997, are obliged to render audited financial statements along with submission of tax declarations every year.
In a public notice carried in the Official Gazette today, the Tax Affairs Organization declared that “in compliance with Article 272 of the amendments dated 31/4/1394 ( 22 July 2015) made by the parliament to the Direct Taxation Act, all production, trade and service companies listed here below are obliged to render, along with submission of their yearly tax declaration, the financial statements audited by the Audit Organization or the audit firms of the Iranian Association of Certified Public Accounts (IACPA). Breaching this order carries with it a penalty equal to 20% of the amount of the applicable tax”.
In addition to the foreign branches and representative offices referred to in the aforesaid list, the companies on the stock exchange, public joint stock companies and their affiliated companies, companies with gross revenue exceeding 50 billion rials per year and some other entities, are bound to render audited financial statements.