guillot-pars

Par guillot-pars le 28/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

Circulaire d'application fiscale de la loi sur l'immatriculatin des succursales et buraux de représentation des entreprises étrangères en Iran.

Les controleurs sont invités à examiner la réalité des activités

Shahrivar 15, 1385

September 6, 2006

THE MODE OF TAXATION OF BRANCHES AND

REPRESENTATIVE OFFICES OF FOREIGN COMPANIES

IN IRAN

The following Circular Letter No.232/1623/18921 has just been issued by Mr. A. A. Arab'mazar, the Head of Taxation Affairs Organization on the mode of taxation of foreign companies:

In order to bring about uniformity in investigation of the tax files of the branches and representative offices of foreign companies in Iran, tax assessors shall be required to take the following points into consideration:

1. representative offices and branches of foreign companies may be registered in Iran in order to carry out any one or more of the following activities in accordance with the Law on Registration of Foreign Companies :

1.1 Supply of after sales services in respect of the commodities sold or services provided by a foreign company.

1.2 Carrying out the executive works required to be rendered under a contract concluded with the foreign company concerned and Iranian entities.

1.3 To investigate and prepare grounds for investment in Iran by the foreign company concerned.

1.4 Cooperation with Iranian technical and engineering companies.

1.5 Promotion of non-oil exports.

1.6 Supply of technical and engineering services and transfer of technology.

1.7 To carry out the activities authorized by government organizations in charge of such authorizations such as the supply of services in the fields of transportation, insurance, goods surveillance, marketing, etc.

2. Iranian natural persons and legal entities (companies limited by shares, limited liability companies, firms, etc.) representing foreign companies in Iran shall also be subject to the provisions of this Circular.

3. It should be noted that the branches and representative offices of foreign companies, according to the provisions of Article 1 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies, approved by the Council of Ministers on March 31, 1999, may operate in Iran only in respect of the activities enumerated in Clause 1 above and registration of a branch or representative office may be possible only in respect of the said activities. Therefore, tax assessors are required to check the validity of the relevant feasibility report or the permission given to a foreign company in order to continue its activities in Iran, at the time of examination of tax returns in accordance with the requirements of Articles 3 and 10 of the said Executive By-Laws .

4. In implementation of Article 8 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies as well as Sub-clause e of Article 2 of the Executive By-Laws of Note 4 of the Law on Utilization of Services of Official Accountants, the tax assessors shall be under the obligation to ask for audited financial statements of the branches and representative offices of foreign companies when asking for submission of their accounts books and vouchers as provided in Sub-clause 2 of Article 97 of the Direct Taxation Act.

5. Considering that a condition and requirement for the registration of a branch or representative office of a foreign company, as provided in Article 5 of the Executive By-Laws of the Law on Registration of Foreign Companies, is the grant of a permission to be given in this regard by a government organization, the tax assessors are, therefore, required to check the said permission at the time of checking the accounts books and vouchers of the branch or representative office concerned.

6. According to the provisions of the above said Executive By-Laws, branches of foreign companies are required to submit, every year, the Annual Report of the head office of the company including its financial reports audited and confirmed by independent auditors in the country where the head office of the branch office is located, to the authorities in Iran who issued the relevant permit. Therefore, tax assessors shall be under the obligation to communicate with the sponsoring organizations and to obtain the required information.

7. Despite the tax exemption provided under Note 3 of Article 107 of the Direct Taxation Act for the branches and representative offices of foreign companies and banks that are engaged in marketing and collecting economic information for their head offices without having the right of entering into any transaction in Iran and receive money from their head offices to cover their expenses in Iran, the following points must be taken into consideration in respect of the activities of this type of companies in Iran:

7.1 Some branches and representative offices of foreign companies in Iran, in addition to marketing and collecting information for the use of their own head offices, also collect information and carry out marketing activities for other foreign entities. In such case, the works carried out for the benefit of other foreign entities shall be regarded as taxable activities.

7.2 Some branches and representative offices of foreign companies, in addition to carrying out marketing and market research activities, are also engaged in after sales services. In such case, the said after sales services do not fall in the category described under Note 3 of Article 107 above and any such branch of a foreign company, in addition to the obligation for payment of the tax accruing on the said after sales services, shall also be subject to tax on commission it will be due to receive.

7.3 Some branches and representative offices of foreign companies, despite the notice of their incorporation issued by the Companies Registry, that clearly and distinctly provides that they are not authorized to become engaged in any profit making activities, issue proforma invoices and sign contracts on behalf of their head offices with clients in Iran. In such case, the said branches and representative offices may not benefit from the tax exemption provided under Note 3, Article 107 above and shall be subject to taxation and their income must be investigated, identified and assessed according to the rules of international trade.

8. Tax assessors, in implementation of Note 3 of Article 107 of the Direct Taxation Act, shall be under the obligation to become certain about the manner and nature of activities of foreign companies in Iran through investigation of the documents and vouchers in the company and collecting the required data and information. Should, as a result of such investigation, it will become known that the head office of the company is selling goods or services (direct sales), the status of the branch office shall not be regarded as before and the said branch office will be considered to have entered into profit making activities or else the said branch office shall be under the obligation to introduce another natural person or legal entity that is acting as the representative of direct sales.

9. All works pertaining to representatives, in accordance with the norms of international trade, will be carried out under contacts. Taxpayers, in implementation of tax laws, shall be under the obligation to provide their representation agreement, related to their documents and vouchers, to the tax office.

10. In accordance with the format international contracts (OECD), as well as the laws on avoiding double taxation, concluded by and between Iran and other countries, in cases where an entity of a contracting state shall, directly or indirectly, participate in the administration, control or the capital of an entity of the other contracting state, or in cases where the same entities or individuals shall, directly or indirectly, participate in the administration, control or the capital of the entity of the other contracting state, and both entities shall be related to each other as regards their trading or fiscal relations under any conditions (whether agreed by, or forced upon them) which conditions shall be different from the conditions in force between independent entities (Arms length principle/third party comparison basis), the profits that could be earned by any one of the said entities if the said conditions did not exist, and such profits were not earned due to the existence of the said conditions, can be regarded and accounted as the profits of that entity and made subject to taxation.

11. In identifying incomes and assessment of profits, legal principles and business criteria, under normal conditions, must be complied with. Therefore, tax assessors, while investigating a tax case, must become certain of the nature of the relations between a branch or representative office of a foreign company in Iran with its head office with due regard to the documents and evidences that have come in hands of the tax assessor and make certain, in one way or another, of the validity or falsehood of the representation agreements and the declared incomes. With due consideration of the international norms of the activities of commission agents, all cost plus, lumpsum commission or fee against services agreements may be acceptable only in case such agreements shall have homogeneous and logical basis similar with the agreements concluded by and between independent entities in which a commission or fee is being normally paid in the form of a percentage of the final invoice of the supplier. The basis of calculation of the income, in such cases, shall be the invoice of the foreign supplier that will be paid through letters of credit in cash, bills of exchange, cash direct through transfer of funds or other methods. Therefore, if the declared income, with due consideration of the normal rates charged by commission agents being independent entities or individuals, shall not be acceptable, then the amount of the letters of credit and its equivalent in rials registered with bank, must be used as the basis for fixing the commission income.

12. As provided in Sub-clause 16 of Article 20 of the Regulation on the Manner of Making Entries in Ledgers, the registration of false expenses and incomes in the ledgers, provided that such falsehood shall be established, shall be the cause of rejection of the accounts books. Therefore, tax assessors are expected to verify the agreements submitted to them and compare the said agreements with other commission agency agreements concluded under normal conditions in accordance with the rules of international trade and prevailing market conditions and must report the false instances to the three-member panel set forth in Sub-clause 3 of Article 97 of the Direct Taxation Act.

13. According to Article 8 of the Executive By-Laws of the Law on Registration of Branches and Representative Offices of Foreign Companies as well as Sub-clause e of Article 2 of the Executive By-Laws of Note 4 of the Law on Expert and Professional Services of Official Accountants, the branches and representative offices of foreign companies in Iran, are under the obligation to utilize the services of official accountants being members of the Society of Official Accountants to act as auditors of their companies. Therefore, the financial statements of the above companies duly audited by official accountants must be examined by tax assessors and the said audited statements must be used as the basis of examination of tax returns.

14. Considering that the firms of auditors and fiscal services are in charge of the accounting and book-keeping works of most of the branches and representative offices of foreign companies, tax assessors must note that according to the principle of independence in auditing, the audit report of the said companies must be drawn up by yet another firm of auditors that will be independent of that in charge of accounts and book-keeping of the company. Therefore, any audit report made and drawn up by the firm of accountants that is in charge of book-keeping of the company shall not be valid and acceptable.

15. The official accountants in charge of auditing the accounts of branches and representative offices of foreign companies in Iran shall be under the obligation to express explicit opinion regarding the identification of incomes and expenses and correctness of the declared incomes including the commission, fee or discount granted to the company and the normal state of commercial affairs of the company and shall fill in the attached form.

Action shall be taken in the following manner in respect of the branches and representative offices engaged in the sale of commodities, equipment, or supply of services in Iran:

15.1 The branches and representative offices supplying goods, equipment or services directly to Iran shall be taxed on the basis of the volume of their sale or their income earned through supply of services according to the regulations of the Direct Taxation Act and other applicable regulations.

15.2 As regards the branches and representative offices having a contract with their head office according to which the sales shall be carried out by the head office and the branch or representative office only records the commission of the sales or the discounts allowed on the sale in its accounts books in Iran, shall not be authorized to record the said commissions or discounts less than the normal commissions or discounts. Therefore, in cases where the said branches or representative offices fail to record their actual income like an independent entity in their account books, or declare a lesser income by presenting superficial agreements, the tax assessors shall acquire reasonable and creditable documents and evidences and shall carefully compare the said agreements with those of other foreign representative offices and shall assess and fix the income of the above said taxpayers, accordingly.

16. Iranian natural persons and legal entities being the exclusive agents of foreign companies that are engaged in transactions pertaining to foreign commodities and rendering services in this regard in Iran, shall be bound to declare their income earned through the sale of foreign goods and services, regardless of whether such income will be earned in cash, by transfer of money or in non-pecuniary form by goods or parts.

17. Other natural persons and legal entities engaged in representing foreign companies in Iran (sale of commodities, supply of technical services, surveillance, etc.) shall be subject to these regulations as regards the examination of their accounts books.

Ali Akbar Arab'mazar (Sgd.)

* * *

Attachment No.1

Par guillot-pars le 27/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

La Cour suprême fixe la compétence juridictionnelle rationne loci en matière de chèques impayés.

Le licenciement pour faute à nouveau possible?

CHEQUES

Official Gazette No.17875 dated July 11, 2006

The General Board of Judges of the Supreme Court issued a Judgement No.688 SUPREME COURT ON COMPLAINTS IN RESPECT OF DUD on June 13, 2006 regarding the competent court to hear claims regarding dud cheques as follows:

Considering that a cheque is not a commercial instrument, therefore, the claims regarding cheques, in respect of the competent court with which the plaint must be filed, shall not be subject to Article 314 of the Commercial Code (concerning bills of exchange). The said claims must, therefore, be filed according to Article 13 of the Law on Procedures of Public and Revolutionary Courts (in civil lawsuits).

Considering the above, a cheque must be regarded as an order of payment and is therefore governed by the provisions of Article 724 of the Civil Code that concern movable properties. The holder of a cheque may, therefore, file lawsuit and complaint with the court where the pertinent contract of sale or transaction was concluded, i.e. the place of issuance of the cheque, or the complaining party may refer to the court where the cheque was due to paid i.e. to the court within the jurisdiction of which the payee bank is situated. Also, considering a general rule that a plaint may be filed with the court within the jurisdiction of which the defendant has his domicile, the holder of the cheque may refer to the court at the place of domicile of the person who issued the dud cheque. The courts at the above three locations shall have jurisdiction to investigate and hear lawsuits in respect of dud cheques.

This present Judgement, according to Article 270 of the Procedure Code of Public and Revolutionary Courts (in criminal cases) shall be binding on all benches of the Supreme Court as well as the other courts.

* * *

Par guillot-pars le 27/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

Circulaire du Ministère du Commerce du 20 Mai 2OO6 sur les ouvertures de lettres de crédit pour les importations.

August 2, 2006

Mordad 11, 1385

LAWS AND REGULATIONS

- Regulations on Commodities Imports by Opening L/C ..... Page 1

- Change of Currencies under L/C's from US$

to Other Currencies ..... Page 5

BUSINESS AND ECONOMY

- 40,000 MW's of Power Generation by Private Sector

During 10 Years ..... Page 6

- A Halt in Energy Subsidies Will Close Down 50% of

the Industries ..... Page 7

- Hopes for Attracting Foreign Investors ..... Page 8

- Completion of Tehran-Caspian Highway Subject to

Procurement of Budget ..... Page 9

- Employers' Contributions to SSO Premiums Shall Reduce

by 7% ..... Page 10

- The Ex-Minister of Economy and Finance on

Achievements of the New Government ..... Page 11

- Iranian Internet Network Becomes Operative in

September 2006 ..... Page 12

=======================

LAWS AND REGULATIONS

=======================

REGULATIONS ON COMMODITIES IMPORTS BY OPENING L/C

The Ministry of Commerce, through its Circular No.85/2/2844 dated May 20, 2006 quoted an earlier instruction given by the Central Bank of Islamic Republic of Iran regarding the above subject as follows:

Commodity Imports by Means of Letters of Credit

Importers of goods must submit an application for opening L/C together with the Statement of Registration of Order to a bank in Iran. The Statement of Registration of Order must have the confirmation of the Bureau of Registration of Orders and Supervision of Commercial Exchanges of the Ministry of Commerce, and its validity period must not have expired.

The L/C opening bank shall take the following actions in accordance with the applicable regulations:

1. To check the application made by the applicant importer and to check the validity and contents of the explanatory notes imprinted by a rubber stamp on the said application by the Ministry of Commerce. The stamp known as the Order Registration Stamp shall specify whether the goods being the subject of the application may be imported by using foreign currencies purchased by the importer at the market, the foreign currencies earned through export of goods from Iran or without using any foreign currency allocated and sold by banks. Therefore, commodities may be imported by opening letters of credit through the use of foreign rates of exchange, or by using the foreign currencies belonging to the applicant importer or by using the credit offered by the L/C opening bank or through the use of Foreign Currency Stabilization Fund or by using foreign currencies supplied through other sources or through a combination of the above methods. In the above cases, it shall not be required to have the application stamped by the Ministry of Commerce if the method of procurement of foreign currency shall be different from what the said Ministry originally stamped on the application.

Note- In the case of applications made by the Government organizations mentioned in Article 160 of the 4th Development Plan Act, the requirement under Sub-clause "d" of Article 13 of the 4th Development Plan Act in respect of foreign transactions and contracts having a price of one million US dollars or more must be complied with and the certificate in respect of such compliance must be taken from the applicant and kept in the records.

2. Aggregation of Customs Duties, Taxes, Order Registration Fee and Other Charges

According to Article 2 of the Law Amending Certain Provisions of the Third Development Plan Act, as well as the requirements of the Law on Collection of Duties and Charges from Producers of Commodities, and Providers of Services and Importers, approved on January 22, 2003 all applicable duties, taxes, order registration fees and other charges payable by commodities importers have been aggregated and reduced to a sum of 4% of the customs value of the goods.

The above sum of 4% as well as the total amount of commercial profit tax fixed by the Council of Ministers in respect of every commodity are collectively known as Import Duties, that will be collected by the Customs.

3. Procurement of the Amount of L/C

Opening the L/C by collecting the equivalent rial value of the L/C by the bank and sale of foreign currency by the bank to the applicant importer or by using the foreign currencies belonging to importers or through a combination of these methods shall be governed by the following regulations:

3.1 A down payment shall be fixed by the L/C opening bank and collected on the date of opening the L/C by the bank with due regard to the creditability of the applicant importer. The balance due on the L/C shall be paid by the applicant importer on the date of negotiation of the documents.

3.2 The amount of the down payment for import of all commodities by ministries and government entities being funded through the General Budget Bill when importing goods through letters of credit shall be 100% of the value of the L/C on the date of opening the L/C.

Note- The companies and organizations affiliated to the Government mentioned in Article 4 of the Public Accounts Law and confirmed by the Management and Planning Organization or MPO comptroller of the organization or entity concerned , regardless of whether they shall have the right to receive funds out of the Budget Bill or not, in cases where they actually do not use the resources of the General Budget Bill in general or in respect of import of a certain commodity shall be exempt from the provisions of this present Sub-clause and may proceed to open L/C according to the provisions of Sub-clause 3.1 above.

3.3 Considering the manner of collection of down payment of the L/C value, banks shall be under the obligation to obtain sufficient security from the applicant importers at the time of opening L/C in respect of the remaining value of the L/C at their own discretion and risk in order to make sure that the remaining value of the L/C shall be paid by the applicant importer in due time.

3.4 The banks shall consider the sale of foreign currencies to applicant importers, on the dates of payment of down payment and interim payments as final sale of foreign currency and shall record such transactions in their books on the date of such transactions. The final settlement of account with the applicant importer on the date of endorsement shall be made by using the exchange rates on the date of negotiating the documents or on the date of maturity of payment (in case of time L/C's and refinance L/C's) in respect of the remaining value of the letter of credit.

Note 1- If the applicant importer shall accept and undertake all fluctuations in the rates of conversion of foreign currencies, the down payment and interim payments shall be made on account basis and final settlement of accounts with the importer concerned shall be made at the rate of exchange prevailing on the date of negotiating the documents.

3.5 The same provisions above shall apply if the foreign currency shall be procured out the currencies belonging to the applicant importer for the purpose of opening letter of credit.

4. It shall be permissible to import goods up to a value ceiling of US$100,000 through making transfer directly in favour of a beneficiary, after obtaining all the required permits and performing all order registration formalities at the Ministry of Commerce.

In such case, the importer must submit evidence on arrival of the import goods in a customs house in Iran within six months after transfer of the price.

In a Circular No.8/SA/705 dated May 4, 2006, the Central Bank provided the following explanations regarding transfer of money for the purpose of import of goods:

["Importers of commodities may pay the price of the goods in various methods including transfer of foreign currencies through the banking network. Payment of price by making transfer of money shall be made by instruction to be given by importer to the operating bank to send a sum of money in writing, by telegram, etc. through an agent bank to a beneficiary outside Iran.

The following points must be taken into consideration in respect of imports by making transfer of funds:

1. If transfer of fund shall be made by using the foreign currencies belonging to the customer (importer), he may clear the goods from the customs by showing the documents evidencing imports by using his own foreign currencies and the order registration documents to the customs.

2. If the importer has asked for transfer of funds by banks through the use of foreign currencies purchased from banks, the importer shall be under the obligation to submit documents evidencing entry of the goods into Iran, within 6 months after the date of transfer.

3. All exporters of goods may import commodities into Iran by using the foreign currencies they earn through export of goods from Iran.

* * *

CHANGE OF CURRENCIES UNDER L/C'S FROM US$ TO OTHER CURRENCIES

The Central Bank of Islamic Republic of Iran, through Circular No. 60/1091 dated June 18, 2006 made the following recommendations to importers of commodities to Iran:

Importers of goods to Iran are urged to take the following points into consideration:

1. To use currencies other than US dollar for the purpose of opening letters of credit and to obtain the pertinent proforma invoice and order registration document also in a currency other than US dollar.

2. To change the type of foreign currencies under the letters of credits that have been opened already but the documents thereunder have not been yet negotiated, or in case the L/C has been partly used but still has a remaining balance.

3. It shall be permissible to change the type of the foreign currencies of the letters of credit at the exchange rate prevailing on the date of change of currency by amending the order registration documents at the Ministry of Commerce.

4. In cases where a letter of credit has been already opened and the supplier is agreeable to collect the money of the L/C in a currency other than US dollar, but the money under the L/C is not yet payable, the parties may agree that the money under the L/C shall be paid to the supplier by using the rate of exchange prevailing on the date of payment.

5. In cases where the down payment under the L/C has been paid by the customer in rial and converted into US dollar by the bank and kept by it in the form of a forex deposit, the settlement of the L/C shall be made on the basis of the rate of conversion of the new foreign currency designated to be the money of the L/C, and all calculations to be made by banks shall be on the basis of the new foreign currency.

6. In the case of those letters of credit pertaining to international tenders or the transactions and contracts made without tender formalities, the buyer shall be under the obligation to arrange for the change of the currency of the L/C from US dollar to a new currency.

7. After the date of release of this Circular (June 20, 2006) if any letters of credit shall be opened to be payable in US dollar, the following provisions must be inserted in the terms of the L/C:

"If any amount payable under this L/C is not possible to be paid in USD, it will be paid in another alternative convertible currency by converting the USD amount to the respective alternative currency at the respective exchange rate announced by the concerned Central Bank, two banking days prior to the payment date."

Par guillot-pars le 26/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

Sommaire . A signaler l'interprétation par l'autorité fiscale de quelques dispositions sensibles du Code des impôts directs

LAWS AND REGULATIONS

- Tax Regulations-The Way They Are Actually Implemented ..... Page 1

- The Law on Rationalizing the Interest Rates of Banking

Facilities ..... Page 4

BUSINESS AND ECONOMY

- Banks on the Verge of Bankruptcy ..... Page 6

- Three Solutions by ICA to Avoid Bankruptcy of Banks ..... Page 7

- Private Sector Unable to Acquire Government Entities ..... Page 8

- 7000 NGO's Operating in Iran ..... Page 9

- Construction Works of Tehran-Caspian Highway Started ..... Page 9

- Deputy Minister of Labour on Unemployment ..... Page 10

- Supply of Gasoline: Dual Rates or Rationing? ..... Page 11

Par guillot-pars le 26/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

Circulaire de la Banque Centrale du 6 Mai 2006 sur les ouvertures de lettres de change en particulier

July 19, 2006

Tir 28, 1385

LAWS AND REGULATIONS

- On Escalation of Prices of Steel, Cement and

Explosives for Contracts Implementation during the First

and Second Quarters in 1384 ..... Page 1

- The Amended Text of CBIRI Regulations Pertaining

to Letters of Credit ..... Page 2

BUSINESS AND ECONOMY

- Major Privatization Scheme Underway ..... Page 9

- Development of Azadegan Oilfield by Iranian Companies ..... Page 10

- Economy Council's Agreement to Refer Work to

Iranian-Foreign Consortium of Consultants ..... Page 11

- Use of Asbesto in Industries Banned ..... Page 11

- Suppliers of Durable Goods are Bound to Offer After

Sales Services ..... Page 12

- 12% of Iranian Households Live Below the Poverty Line ..... Page 12

THE AMENDED TEXT OF CBIRI REGULATIONS PERTAINING TO LETTERS OF CREDIT

The Policies and Regulations Department of the Central Bank of Islamic Republic of Iran, through Circular No.60/1035 dated May 6, 2006 amended Clauses 9 and 10 of Section I regarding opening letters of credit and Clause 1 of Chapter 1 of Foreign Exchange Regulations regarding miscellaneous items and Part 2 of the above regulations pertaining to insurance.

The following is a translation of the amended parts:

Amended Regulations Pertaining to Opening Letters of Credit:

9. Fixing the Date of Maturity: The date of maturity of the L/C may be fixed to be within 18 months after the date of L/C opening at the request of the importer and with due regard to the creditability of the customer concerned.

Note- In cases where according to the pro-forma invoice or the contract concluded in respect of the commodities, some time shall be required to manufacture the goods, a period commensurate with the time required to manufacture the goods under the contract shall be allowed at the discretion of the L/C opening bank.

10. Extending the Validity of the Opened L/C

10.1 It shall be permitted to extend the validity of the opened L/C at the request of the applicant and by agreement and acceptance of the L/C opening bank at the prevailing rate of exchange, foreign currency deposit certificate or certificate of payment of foreign currency-Variz'nameh-(forex purchased from Stock Exchange or out of government allocated forex), forex earned by the applicant through exports, forex purchased at agreed upon rate (from banks) or the forex belonging to the applicant.

10.2 It shall be permitted to extend, up to the end of the year 1385, the validity of all letters of credit opened at the request of the organizations listed in Exhibit No.3 hereof at export or floating rates of exchange (Rls.1,750 to a dollar) as well as the companies and entities affiliated to the said organizations out of the quotas allocated to the organizations concerned with the agreement of the forex allocating organization.

10.3 It shall be allowed to extend, up to the end of the year 1385, the maturity dates of the letters of credit pertaining to development projects of the ministries and government organizations and entities, opened at export and floating rates (Rls.1,750 to one US dollar). Provided, however, that the minister or deputy minister concerned shall confirm that the L/C is related to a development project.

10.4 It shall be allowed to extend the maturity dates of finance L/C's, short-term credit lines L/C's (refinance) and the L/C's under the credits of Islamic Development Bank and the World Bank with due regard to the foreign exchange regulations.

Note- It should be noted that the maturity dates of the L/C's being the subjects of Sub-clauses 10.2, 10.3 and 10.4 that were opened prior to March 21, 2001 by using forex at export and floating rates (Rls.1,750 to one US dollar) and no withdrawal whatsoever has been made from them, to this date, as well as the maturity dates of L/C's opened with the use of forex allocated at less than the floating rate, shall not be possible.

The said L/C's may be extended only in case the difference between their rates (export, floating and less than floating rate) with the prevailing rates of exchange, in rials, shall be paid by the applicant.

10.5 It shall be allowed to extend the period of validity (maturity) of the letters of credit pertaining to the Ministry of Petroleum and all the companies and entities affiliated to the said Ministry the foreign currencies for which were supplied out of the credit envisaged in Article 120 of the 3rd Development Plan Act and Sub-clause 1 of Clause D of Note 11 of 1384 National Budget Bill. Provided that the provisions of Directive No.876 dated August 8, 2001 and Directive No.VMK/55 dated October 3, 2005 given by the General Manager of International Affairs and Bank Operations of CBIRI shall be complied with.

10.6 It shall be allowed to extend the validity (maturity) of the letters of credit opened by using forex at parity rates less than that mentioned in Sub-clause 10.1 above in case of request by the applicant and payment of the difference to bring the parity rate to the one prevailing on the date of extension.

10.7 It shall be allowed to extend the validity of the letters of credit pertaining to payment of freight charges in accordance with the criteria governing the extension of validity of the L/C's pertaining to cargo.

10.8 Extension of validity of the L/C's pertaining to the cargo that shall require a period to be manufactured and produced shall be made at the discretion of the L/C opening bank with due regard to the terms of the pro-forma invoice or the relevant contract.

Amended Regulations Pertaining to Rial L/C's

G. Opening L/C in Iranian Rial for Import from Neighbouring Countries

1.1 Importers may apply for opening letters of credit in rials (payable at sight or on maturity by submitting pro-forma invoices issued by foreign suppliers in Iranian rials and order registration documents confirmed by the Ministry of Commerce for the purpose of importing goods in accordance with the foreign exchange regulations of CBIRI.

1.2 Banks shall make sure that regulations pertaining to combat against money-laundering are in force in the country of the supplier.

1.3 Banks may open accounts in the name of a foreign supplier in order that proceeds of sales shall be paid to such accounts in compliance with the applicable regulations.

1.4 If the bank becomes sure of arrival of the imported goods at the destination, the Iranian rials being the currency of the L/C may be converted into other currencies at the request of the Seller through the agent bank on the basis of the rate of exchange prevailing on the date of conversion.

1.5 It shall be allowed to convert a foreign currency L/C to Iranian rials L/C at the rate of exchange prevailing on the date of conversion by collecting the order registration certificate amended by the Ministry of Commerce.

1.6 It shall be necessary to report the information concerning the L/C's mentioned in Sub-clause 1.5 above to the Department of Statistics and Foreign Currency Undertakings of CBIRI according to the pertinent directives.

H. The Manner of Payment and Clearance of Foreign Currency Pertaining to Commodity Imports from the Countries Being Members of Asiatic Barter Union:

Imports from the above countries shall be governed by the regulations set forth in Exhibit No.8 of CBIRI Foreign Exchange Regulations

Part II- Insurance Regulations

1. According to Article 70 of the Law on Establishment of Central Insurance approved 1971, for the purpose of carriage of goods imported into Iran, it shall be necessary to insure the goods for transportation with Iranian insurance companies. Therefore, for the purpose of opening letters of credit or imports through bills of exchange, submission of insurance policy issued by an Iranian authorized insurance company shall be required. Opening a letter of credit shall be contingent on submission of a copy of the insurance policy issued by an Iranian authorized insurance company and indicating insurance in the terms of the L/C.

Note- In cases where imports will be made by L/C or bills of exchange from Iranian free trade-industrial zones or from special economic zones to the mainland Iran, submission of insurance policy for transport to the bank opening the L/C shall not be required, provided that the importer shall assume all liabilities regarding carriage of goods. However, the banks should seek coverage for that portion of the value of goods paid under the L/C that has been provided by the bank and that has not been paid by the importer.

2. According to a notice made by Iran Central Insurance, the following insurance companies are authorized to operate in the field of insurance for carriage of goods:

Bimeh Iran Co., Asia Insurance Co., Alborz Insurance Co., Dana, Parsian, Towsee, Karafarin, Razi, Mellat, Sina, Dey, Saman, Novin, and Exports and Investment Insurance Co. (PJS).

In addition to the above companies, transport insurance policy may be obtained from Hafez Insurance Co., Omid Co. and Iran Moin Co. for goods transported from destinations outside Iran to the free trade zones of Kish, Qeshm and Chahbahar.

3. Carriage insurance policy must be issued under any one of the insurance policy types A, B, or C.

4. In case of L/C's or bills providing for payment of the insurance premium by the Supplier, the insurance policy must be made payable in the same currency of the L/C.

5. Should the importer so request, the insurance policy may be issued by authorized Iranian insurance company in the same currency of the L/C.

6. In calculation of the value of the letters of credit for which insurance policies have been submitted in Iranian rials, the currency of the L/C shall be taken into consideration.

7. The minimum amount of coverage allowed for the goods under the letters of credit/bills of exchange shall be the value of the goods except in cases where the sale has been made as C.I.P. and C.I.F.

B. The inspection certificates issued by the following foreign inspection companies shall be acceptable:

Par guillot-pars le 26/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

Les garanties de crédits par le gouvernement iranien pour certains projets avec des entreprises étrangères.

ON PROCUREMENT OF CREDIT BY IRANIAN GOVERNMENT COMPANIES

Official Gazette No.17833 dated May 20, 2006

Decree of the Council of Ministers No.H35081T/19011 dated May 17, 2006

To: - The Ministry of Economy and Finance

- The Management and Planning Organization

The Council of Ministers, in the course of a Session held on April 5, 2006, on the basis of a proposal made jointly by the Ministry of Economy and Finance, and the Management and Planning Organization and by invoking Article 6 of the Law Adding Certain Provisions to Government Fiscal Regulations approved 2005, ratified the following executive by-laws of the said Article:

Article 1- In order to provide the financial resources required for investment and implementation of the projects mentioned in Article 6 of the Law Adding Certain Provisions to Government Fiscal Regulations, the Iranian Government companies being parties to contracts, may proceed to conclude contracts with foreign and Iranian entrepreneurs, in accordance with the provisions of the said Article within the framework of the Law on Attraction and Protection of Foreign Investment in the form of direct foreign investment or through Build, Operation and Transfer (BOT), Build, Ownership and Operation (BOO), Buy-back, and Civil Partnership, with priority to be given to Iranian joint ventures.

Article 2- Iranian government companies being parties to contracts shall submit to the Management and Planning Organization (MPO) their projects for development plans of a particular sector, together with their technical, economic, and financial feasibility studies as well as the particular instances where the government shall be required to issue letters of guarantee in order that same shall be verified and confirmed by the Economy Council and a permission shall be issued for the project by the Economy Council.

Article 3- The Ministry of Economy and Finance shall proceed to guarantee repayment of contractual obligations of the Iranian government companies being parties to the contracts set forth in Sub-clause 1 of Article 6 of the above law after acceptance of the project by the Foreign Investment Board and issuing Investment Permit under the Law on Attraction and Protection of Foreign Investment. Issuance of a letter of guarantee by the government shall have no effect on the obligations of the Iranian government company being party to a contract in respect of payment of its contractual obligations.

Article 4- The Central Bank of Islamic Republic of Iran shall be bound to check the compatibility of the fiscal portions of the contracts with the methods of raising funds and repayment thereof set forth in Article 1 above and shall report such compliance to the Economy Council in case it finds such portions to be compatible with the said methods.

Article 5- In respect of the investment projects the commodities to be produced thereunder or the services to be rendered under which shall be exclusively purchased by a government company, as well as the instances where the commodities or services under the project shall be offered at subsidized prices, the capability of the government company concerned to produce the commodities or to offer the services under the project shall be confirmed by the Economy Council and the purchasing government company shall then proceed to purchase the commodities or services within the framework of legal criteria in accordance with the terms of the contract concluded in this regard. The Ministry of Economy and Finance shall then be authorized to guarantee the fulfillment of the obligations on behalf of the government.

Article 6- Should the commodities and services produced and offered under the investment project be among subsidized commodities and services in accordance with the applicable laws and regulations and shall be offered at prices described in Article 39 of the Law, the difference between the determined and fixed price with the price approved by the Economy Council, shall be paid out of the credits and resources of the Government.

Article 7- The general assemblies and the boards of directors of the government owned companies purchasing the above said commodities or services shall be under the obligation to include the amounts payable on account of the contractual undertakings of the projects described in these by-laws with priority over other expenses, in the annual budgets of the purchasing companies.

Article 8- In case of failure to anticipate payment of the amounts undertaken to be paid by the government company in charge of purchasing the commodities and services in the annual budget of the said company, the matter shall be informed by the Management and Planning Organization and the Ministry of Economy and Finance to the general assembly of shareholders of the purchasing company and the shareholders shall be bound to amend the budget of the company in order that the required credit shall be included in the budget of the government for payment of the amounts due under the contract.

Article 9- The Ministry of Economy and Finance shall be authorized to guarantee, on behalf of the government, all contractual obligations of Iranian Government companies being parties to the above contracts out of the money, assets, resources and any and all accounts belonging to the said companies.

In order to enable fulfillment of the guaranteed obligations by the Ministry of Economy and Finance, the general assemblies and the boards of directors of the said government owned companies shall be bound to unconditionally and irrevocably authorize the Ministry of Economy and Finance to make withdrawals from all funds, sums of money and bank accounts of the government owned companies concerned deposited with all domestic and foreign banks.

Note- The above guarantee shall not include that portion of the equipments and other physical capitals of the investor companies against the risks and hazards of natural and non-natural force-majeur events covered by customary insurance.

Article 10- In implementation of Article 9 of these by-laws, the minister or the top most executive authority of the organization concerned and in respect of government owned companies, the general assemblies and Boards of the Company concerned shall, at the time of concluding contracts, submit the details of the data and statistic regarding their funds, resources and bank accounts in Iran or abroad as well as their subsequent changes to the Ministry of Economy and Finance in order that the said Ministry will be able to enforce fulfillment of the obligations made in this respect by the Ministry of Economy and Finance.

Article 11- The Company purchasing the commodities or services shall be under the obligation to pay its contractual obligations on the dates provided in the contract. In case of failure by the Company to pay its obligations, the Ministry of Economy and Finance shall be authorized to make payment out of the bank accounts, sums of money and resources belonging to the Company.

Article 12- The Ministry of Economy and Finance shall report the information pertaining to the above guaranties to the Central Bank of Islamic Republic of Iran in order that the said banks shall include the impacts of the assumed obligations in the foreign currency balance sheet of the country.

Article 13- The Iranian government companies being parties to the contracts shall be under the obligation to report, once every six months until the end of the period of guarantee of the investment, the operations and financial activities made thereunder, to the Ministry of Economy and Finance, the Management and Planning Organization and the Central Bank of Islamic Republic of Iran.

Article 14- The Ministry of Economy and Finance, in order to mobilize and procure the required financial resources for due and full implementation of the obligations resulting from these by-laws, shall be under the obligation to make necessary arrangements, with the cooperation of the Management and Planning Organization to provide coverage in order to materialize the obligations on the maturity dates of each installment.

Article 15- In case of transfer or sale of the agent government companies (being parties to the contracts), the Ministry of Economy and Finance shall be under the obligation to act in such a way that all the obligations assumed by the companies shall be transferred to the new shareholders and the letters of guarantee issued and given by the Government shall remain binding and valid until the last stages of implementation of the contract.

Article 16- The Minister of Economy and Finance shall be authorized to sign the above said letters of guarantee or to authorize another authority to sign the letters of guarantee with due regard to the provisions of these by-laws and other applicable laws and regulations.

Parviz Davoodi- First Vice-President

Par guillot-pars le 25/05/09
Dernier commentaire ajouté il y a 11 années 11 mois

July 5, 2006

Tir 14, 1385

LAWS AND REGULATIONS

- Punishment of Crimes Committed by Iranians Outside Iran ..... Page 1

- Decree on Affiliation of Bahman Manufacturing Company

to IDRO ..... Page 4

LEGAL NEWS

- Money Laundering Bill Approved by Expediency Council ..... Page 5

INTERVIEW

- Revolutionary Guards Corps, A General Contractor ..... Page 5

BUSINESS AND ECONOMY

- TSE Prices Fell by $8 Billion Since Last Year ..... Page 12

=======================

LAWS AND REGULATIONS

=======================

PUNISHMENT OF CRIMES COMMITTED BY IRANIANS OUTSIDE IRAN

According to Article 7 of the Penal Code of Iran, "any Iranian who commits a crime outside Iran and who shall be then found in Iran, shall be punished according to the Laws of Islamic Republic of Iran."

The above instances are in addition to those mentioned in Articles 5 and 6 of the Islamic Penal Code that provide for punishment in Iran of the individuals who commit crimes against the State of the Islamic Republic of Iran and who shall be then found in Iran. Such individuals shall also be tried and punished according to the Laws of Iran.

The words "... who shall be then found in Iran" certainly refer to those who commit a crime outside Iran and shall manage to escape and shall then be found in Iran. If the perpetrator "shall be found" in the country where he perpetrated the crime, he shall be tried, punished and then released from prison. He may then come to Iran and no one will be after him to "find" him in this country.

There have been ambiguities regarding the true meaning of Article 7 of the Islamic Penal Code. Cases had been reported on prosecution of those who committed crimes outside Iran and on their return to Iran, they were prosecuted again despite their punishment in foreign countries where they perpetrated the crime.

To put an end to the ongoing discussions, the Judiciary has just published, through Official Gazette No.17825 dated May 10, 2006 two opinions given earlier by the Department General of Legal Matters and Compilation of Laws of the Judiciary.

Both the above opinions explicitly provide that a crime may only be examined once and a criminal may be punished only once. Therefore, an Iranian tried and punished outside Iran for a crime committed by him in a foreign country, cannot be tried again and punished anew in Iran.

The following is a translation of the said two opinions:

Opinion No.7/2595 dated July 6, 2003 published in Official Gazette No.17825 dated May 10, 2006

Inquiry: A coach driver in Turkey caused the coach to capsize and kill a number of passengers.

The driver resides now in the city of Qom and the heirs of those who were killed wish to know if they can file valid complaints against the driver.

Opinion: Considering that the crimes of manslaughter and inflicting injuries were perpetrated in Turkey, and apparently the driver went to trial and was condemned to imprisonment for three months in Turkey and was thus punished in Turkey, therefore he can not undergo a new trial in Iran.

However, in case the driver did not go to trial and was not punished in Turkey, and shall be found in Iran, as provided in Article 7 of the Law of Islamic Punishments, the court of the place where he will be arrested shall have jurisdiction for his trial and punishment. Blood money may also be claimed by reference to the dossier of the same penal case.

If the driver received punishment in Turkey, but payment of blood-money was not made there due to the fact that blood-money could not be claimed in Turkey, the next of kin of those who died in the accident as well as those who became injured may institute claim and file lawsuit for payment of blood-money with the court of the place where the driver resides in Qom.

The second opinion given by the Department General of Legal Matters and Compilation of Laws of the Judiciary is numbered 7/979 and was issued on June 6, 2002:

Inquiry: In cases where certain individuals commit crimes outside Iran and shall be prosecuted, tried and punished in those foreign countries, should, on their return to Iran, be tried again and punished regardless of the type and nature of the crime perpetrated by them?

Reply Given as Opinion No.7/979 on June 6, 2002 published in Official Gazette No.17825 dated May 10, 2006:

With due regard to the purport of Article 3 of the Law of Islamic Punishments that provides: "The penal laws shall apply to all those individuals who commit any offence or crime within the land, air, or sea boundaries of Islamic Republic of Iran, except in cases where the law shall provide otherwise", in cases where an individual shall commit offences and crimes outside Iran and shall be tried, condemned and punished there, it shall be against the general rules of penal proceedings to call such person to new trial in Iran, except in cases where explicit provisions of law provide contrary arrangements.

* * *

The following are translations of Articles 3, 5, 6 and 7 of Islamic Penal Code quoted above:

Article 3- The Penal Laws of Islamic Republic of Iran apply to all those who commit offences and crimes within the land, sea and air boundaries of the country, except in cases where the Law provides otherwise.

Article 5- Any Iranian national or foreigner who commits any one of the following crimes outside the area of sovereignty of Iran and who shall be found in Iran, or shall be returned to Iran, shall be punished according to the Laws of Islamic Republic of Iran:

1. Acts against the Government of Islamic Republic of Iran, domestic or foreign security, integrity or independence of Islamic Republic of Iran.

2. Forging the decree, handwriting, seal or signature of the Leader or using same.

3. Forging official writing of the President, Speaker of the Islamic Consultative Assembly, Guardians Council, Assembly of Experts, Head of the Judiciary, Vice President, the President of the Supreme Court, Attorney-General or anyone of the ministers or using such forgeries.

4. Forging the bank notes currently in circulation or any bank documents such as the bills of exchange accepted by banks or cheques issued by banks or banks binding documents, forging Treasury documents and bonds issued or guaranteed by the Government and forging and making false domestic coins currently in use.

Article 6- Any crime committed by the foreigners who are at the service of Iranian Government or civil servants of Islamic Republic of Iran's Government in relation to their duties outside Iran as well as the crimes perpetrated by diplomatic, consular or cultural agents and authorities of Iranian Government who benefit from diplomatic immunity shall be punished in accordance with the penal laws of Islamic Republic of Iran.

Article 7- In addition to the instances enumerated in Articles 5 and 6 above, any Iranian national who commits a crime outside Iran and who shall be then found in Iran shall be punished according to the penal laws of Islamic Republic of Iran.

Par guillot-pars le 20/05/09
Dernier commentaire ajouté il y a 11 années 12 mois

Ces 6 numéros comportent la loi de finances de l'année 1385 ainsi que les tableaux récapitulatifs des ressources ou charges procurées par chacune des entités publiques de nature industrielle ou commerciale de l'Etat iranien.

Tout intéressé peut se les procurer auprès des cabinets de Paris et Téhéran

Par guillot-pars le 20/05/09
Dernier commentaire ajouté il y a 11 années 12 mois

April 5 & 12, 2006

Farvardin 16 & 23, 1385

LAWS AND REGULATIONS

- New 1385 Salary Taxes ..... Page 1

- SSO Premium in 1385 ..... Page 2

- Duties Payable by Foreigners to Obtain Work Permits ..... Page 3

- No Withholding Taxes from Non-Contractual Taxi,

Minibus and Van Freight and Fare Charges ..... Page 5

- On Opening L/C's for Automobile Imports ..... Page 6

- On Collection of Fee for Urban Services by Municipality ..... Page 7

- Decree on the Beginning of Working Times in Tehran ..... Page 8

- Allocation of Unsold Bonds for Payment to Contractors

by Ministries of Energy and Roads & Transportation ..... Page 9

- Contracts for Conducting Studies on Potential

Target Markets ..... Page 9

- CBI on the Terms of Payment Out of Foreign Exchange

Stabilization Fund ..... Page 11

=======================

LAWS AND REGULATIONS

=======================

NEW 1385 SALARY TAXES

According To Article 84 of the Direct Taxation Act as Amended on February 15, 2002, salaries and wages paid to those workers who are subject to the provisions of the Labour Law, during one full year, shall be exempt from payment of tax up to a sum of 150 times greater than the minimum basic salary coefficient used to determine the salaries of civil servants.

The Head of Taxation Affairs Organization, through his Circular No.211-3/606 dated April 8, 2006 communicated the Table of 1385 Salary Taxes as follows:

The Co-efficient of salaries table being subject of Article 33 of the civil servants law has been determined to be 435 rials as of March 2, 2006.

Therefore, after the said date, as provided in Article 84 of the Direct Taxation Act as Amended on Feb. 16, 2002, the amount of annual exemption provided in the said Article, for all salary earners, during 1385 shall be as follows:

150 × 400 × 435 = Rls.26,100,000 Annual Salary Exemption

26,100,000 : 12 = Rls.2,175,000 Monthly Salary Exemption

Below is the Salary Tax Table of the personnel being subject to the Labour Law:

Salary Taxes of the Employees Governed by Labour Law (Rls.)

Monthly Salary Annual Salary Annual Taxable Income Salary Tax Rates (%) Annual Tax Monthly Tax

Remarks

2,175,000 26,100,000 --- --- Exempt Exempt

2,350,000 28,200,000 2,100,000 10 2,100,000 17,500

2,500,000 30,000,000 3,900,000 10 3,900,000 32,500

3,000,000 36,000,000 9,900,000 10 9,900,000 82,500

3,500,000 42,000,000 15,900,000 10 15,900,000 132,500

4,000,000 48,000,000 21,900,000 10 21,900,000 182,500

4,500,000 54,000,000 27,900,000 10 27,900,000 232,500

5,000,000 60,000,000 33,900,000 10 33,900,000 282,500

5,500,000 66,000,000 39,900,000 10 39,900,000 332,500

5,675,000 68,100,000 42,000,000 10 42,000,000 350,000

6,000,000 72,000,000 45,900,000 10 & 20 45,800,000 415,000 on the exceeding amount

6,500,000 78,000,000 51,900,000 10 & 20 61,800,000 515,000

7,000,000 84,000,000 57,900,000 10 & 20 73,800,000 615,000

7,500,000 90,000,000 63,900,000 10 & 20 85,800,000 715,000

8,000,000 96,000,000 69,900,000 10 & 20 97,800,000 815,000

9,000,000 108,000,000 81,900,000 10 & 20 12,180,000 1,015,000

10,000,000 120,800,000 93,900,000 10 & 20 14,580,000 1,215,000

10,508,333 126,100,000 100,000,000 10 & 20 15,800,000 1,316,667

11,000,000 132,000,000 105,900,000 10 & 20 & 25 17,275,000 1,439,583 on the exceeding amount

12,000,000 144,000,000 117,900,000 10 & 20 & 25 20,275,000 1,689,583

13,000,000 156,000,000 129,900,000 10 & 20 & 25 23,275,000 1,939,583

14,000,000 168,000,000 141,900,000 10 & 20 & 25 26,275,000 2,189,583

15,000,000 180,000,000 153,900,000 10 & 20 & 25 29,275,000 2,439,583

16,000,000 192,000,000 165,900,000 10 & 20 & 25 32,275,000 2,689,583

17,000,000 204,000,000 177,900,000 10 & 20 & 25 35,275,000 2,939,583

18,000,000 216,000,000 189,900,000 10 & 20 & 25 38,275,000 3,189,583

19,000,000 228,000,000 201,900,000 10 & 20 & 25 41,275,000 3,439,583

20,000,000 240,000,000 213,900,000 10 & 20 & 25 44,275,000 3,689,583

* * *

SSO PREMIUM IN 1385

According to a Notice given by the Social Security Organization, the amount of minimum salary and wages paid to a worker in 1385 (from March 21, 2006) shall be Rls.50,000 per day. Therefore, SSO premium paid on the basis of a monthly salary less than Rls.1,500,000 (in months having 30 days and Rls.1,550,000 in months having 31 days) shall not be acceptable to the SSO.

Minimum SSO Premium (Rls.)

Number of days in Month Minimum Monthly Salary 7% Premium Payable by Workers 20% Premium Payable by Employers 3% Unemployment Insurance Premium Total Premium

31 1,550,000 108,500 310,000 46,500 465,000

30 1,500,000 105,000 300,000 45,000 450,000

29 1,450,000 101,500 290,000 43,500 435,000

According to the said Announcement, the maximum daily amount (SSO ceiling) of wages for Social Security Premiums for calculation purpose shall be Rls.254,500. Therefore, the maximum amount of premium for salaries higher than the above sum shall be as follows:

Maximum SSO Premium (Rls.)

Number of days in Month Maximum Monthly Salary 7% Premium Payable by Workers 20% Premium Payable by Employers 3% Unemployment Insurance Premium Total Premium

31 7,889,500 552,265 1,577,900 236,685 2,366,850

30 7,635,000 534,450 1,527,000 229,050 2,290,500

29 7,380,500 516,635 1,476,100 221,415 2,214,150

* * *

DUTIES PAYABLE BY FOREIGNERS TO OBTAIN WORK PERMITS

Article 97 of the Law Concerning Adjustment of Certain Government Financial Regulations approved in 1380 (January 15, 2002) provides that the Ministry of Labour and Social Affairs shall be under the obligation to collect, from those employers who hire foreign workforce, an amount equal to 30% of the salary and fringe benefits of their foreign workers, plus the Unemployment Insurance Premium paid by employers in respect of Iranian workers and deposit the said amount with the Government's Public Revenue Account (with the Treasury General).

Although it was originally approved that the above law will be tentatively enforced for a period of four years, but Article 156 of the Law on the 4th Development Plan provided that the Law Adjusting Certain Fiscal Regulations of the Government shall remain enforceable and valid during the period of implementation of the 4th Development Plan (1384-1388) i.e. from 2005 to 2009.

The Expatriates Labour Department, through the following letter, has now instructed all employers throughout Iran to make the above payment:

Islamic Republic of Iran (Emblem)

Ministry of Labour and Social Affairs

Department General of Employment of Foreign Nationals

"Nothing can make people happier than sincerely serving them."

The Honourable Leader

To: Messrs. ........................

Dear Sirs,

In implementation of Article 97 of the Law Regulating Certain Fiscal Criteria Governing the Government, stipulated in Article 156 of the Law of the 4th Development Plan, please pay 30% of the total amount paid to all your foreign employees as well as the sum of Rls. ................ being the sum equal to the Unemployment Insurance Premium of Iranian workers to Account No. .............. ................................. and submit the pertinent receipt to our Department General.

Mohamed Hassan Salehi'maram – General Manager

Dept. for Employment of Foreign Nationals (Sgd.)

The salaries of the expatriates shall not be acceptable less than the following amounts:

Minimum Acceptable Salaries (in US$)

Nationality

Position W. Europe, US, Canada, Japan, Brazil S. Korea, Malaysia, Australia, New Zealand, Oceania, Latin America Russia, Middle Asia, East Europe Turkey, Poland, Hungary, Czeck Republic Slovakia, South Africa, Greece, India, Pakistan, Egypt and Lybia Bangladesh, Iraq, Afghanistan African Countries, others

Managing director (of joint stock or limited liability companies, etc.), principal representatives (rep. offices, branches of foreign companies, banks, insurance companies, surveillance companies)

7,000

4,900

3,220

4,200

2,800

2,100

2,450

Asst. managing director or principal rep., sales manager; fiscal, adm., Coordination, marketing and after sales services supervisors; erection and commissioning supervisors

6,000

4,200

2,760

3,600

2,400

1,800

2,100

Dept. manager, Senior technical, fiscal, adm. Sales, marketing, after sales services technician

5,000

3,500

2,300

3,000

2,000

1,500

1,750

Member of staff (fiscal, adm., sales, marketing, procurement, purchasing, skilled technician, foreman, cook, secretary, translator, draftsman

4,000

1,800

1,840

2,400

1,600

1,200

1,400

Skilled worker, technician, steward/ess, nurse 3,000 2,100 1,280 1,800 1,200 900 1,050

Pilot 6,000 3,200 2,760 3,600 2,400 1,800 2,100

Co-pilot, flight eng. 5,000 2,500 2,300 3,000 2,000 1,500 1,750

General practice physician, member of academic board 6,000 4,200 2,760 3,600 2,300 1,800 2,100

Simple worker -- -- -- -- 500 300 --

* * *

Par guillot-pars le 20/05/09
Dernier commentaire ajouté il y a 11 années 12 mois

March 15, 2006

Esfand 24, 1384

LAWS AND REGULATIONS

- Circular on Minimum Wages and Increase of Salaries

in 1385 ..... Page 1

- Regulation on the Manner of Implementation of Labour

High Council's Decree of February 28, 2006 ..... Page 2

- The Manner of Increasing the Wages of Workers

Under Job Classification Schemes ..... Page 4

BUSINESS AND ECONOMY

- Impacts of High Oil Income on Iran's Economy ..... Page 7

- The Challenge of Privatization ..... Page 8

- The Negative Aspects of WTO Membership for Iran ..... Page 9

- Chinese Cheap Car Manufacturers Swarm the Iranian Market ..... Page 10

- $5 Billion of Financing Credits and $1 Billion Cash

for Expansion of Refineries ..... Page 12

=======================

LAWS AND REGULATIONS

=======================

CIRCULAR ON MINIMUM WAGES AND INCREASE OF SALARIES IN 1385

The Office of the Minister of Labour and Social Affairs

Circular No.122267 issued on March 6, 2006

In implementation of Article 41 of the Labour Law, the Labour High Council held a meeting on February 28, 2006 in presence of the representatives of the government, the workers and employers to determine the minimum wages in 1385.

The following decisions were adopted by unanimous vote, in the said meeting, with due regard to the interests of workers in order to bring their pay to the level of livelihood by taking into consideration the exigencies governing the economic entities, employers and the economic condition of the Iranian society:

1. From the beginning of the new Iranian year 1385 (March 21, 2006), the minimum wages of workers being subject to the provisions of the Labour Law, to be employed under indefinite agreements (employed for indefinite, unlimited period) shall be fifty thousand rials (Rls.50,000) per day.

Note- The minimum daily wage of the workers employed in accordance with the Labour Law, for a definite and limited period, shall be Rls.60,000 per day.

2. From the beginning of the year 1385, other wage levels shall increase by adding Rls.5,000 per day plus ten per cent.

3. A daily sum of Rls.1,250 shall also be payable to the workers in 1385 if one year has lapsed since their employment or from the date their salary was increased during last year. The said increase shall be known as annuity.

Note 1- The above sum shall be used as annuity also in determining the salaries of the workers working under job classification schemes approved by the Ministry of Labour and Social Affairs. The above figure must be inserted in Group I wages in compliance with the instructions given by the Ministry of Labour in respect of job classification schemes.

Note 2- Seasonal workers' wages in 1385 shall be increase in proportion of the duration of their service during 1384.

4. In order to supply the staple commodities to workers in 1385, a monthly sum of Rls.100,000 must be paid by employers in respect of every worker (whether single or married) to an account to be subsequently announced by the Ministry of Labour and Social Affairs.

5. The regulations on the manner of increasing the wages set forth in Clause 1 of this Circular and the Note appended thereto, as well as in Clause 2 in respect of those jobsites complying with a job classification scheme where the workers receive a compensation in respect of every piece they produce and the manner of increasing their grade, shall be in accordance with the pertinent instructions to be given by the Department General of Supervision of Compensatory Systems of this Ministry.

6. The jobsites being subject to the provisions of the Labour Law, for the purpose of regulating payment of wages and benefits on the basis of efficiency and increased production and in order to create incentives among their workers may, in addition to implementation of this Decree, provide for payment of wages and benefits on the basis of collective agreements with their workers. Such agreements shall enter into force upon confirmation of same by the Ministry of Labour and Social Affairs.

Seid Mohammad Jahromi (Sgd.)

* * *

REGULATION ON THE MANNER OF IMPLEMENTATION OF LABOUR HIGH COUNCIL'S DECREE OF FEBRUARY 28, 2006

Circular No.123191 issued on March 7, 2006

In implementation of the provisions of Clause 5 of Circular No.122267 dated March6, 2006 issued by His Excellency, the Minister of Labour and Social Affairs in respect of a Decree of the Labour High Council dated February 28, 2006, the following provisions are hereby declared on the manner of implementation of the said Decree.

1- The Manner of Calculation of the 10% Increase Set Forth in Clause 2 of the Circular

Compensation made in respect of every piece of production to the workers in 1385 must be increased by adding 10% to the piece work compensation paid to all workers (whether working under an indefinite agreement or under a time contract). Should the said workers receive a fixed amount, in addition to the piece work commission, also the said fixed amount must be increased by 10%.

Note- In cases where the amount of compensation for production of a piece of product shall be determined on the basis of the fixed part of the wage i.e. the piece work commission shall be a percentage of the fixed amount, in such case only the fixed portion of the wage shall be subject to 10% increase (this being due to the fact that in the above case, also the piece work commission shall increase by 10%, ipso facto).

2- The Manner of Including the Fixed Amounts Provided in the Circular in the Wages

In addition to the 10% increase in the fixed amount of wages, the said fixed amount shall further be increased by Rls.5,000 per day. In cases where certain workers shall not receive any fixed amount, then the said daily sum of Rls.5,000 shall be paid to them in the form of fixed wages.

In fixing the above sum in respect of the workers working under definite agreements for a limited period, in 1385, in the workshops (jobsites) having a job classification scheme, actions will be taken according to Circular No.123086 dated March 7, 2006.

Note- The total amount of fixed wages and piece work compensation for working the legal hours of work in a month (of 30 days) in respect of workers working under indefinite and unlimited contracts must not be less than Rls.1,500,000 and in respect of workers working under definite contracts for a limited period must not be less than Rls.1,800,000.

3- Payment of Annuity

In addition to increase in wages, piece work workers, whether working under job classification schemes or not, shall be eligible to receive the annuity payable to workers according to Clause 3 of Circular No.122267 dated March 6, 2006 of the Honourable Minister of Labour and Social Affairs.

Abolghassem Karam'beigi

General-Manager, Supervision of Compensatory Systems

* * *

THE MANNER OF INCREASING THE WAGES OF WORKERS UNDER JOB CLASSIFICATION SCHEMES

Circular No.123086 issued on March 7, 2006

The following are the regulations on the manner of increasing the wages of those workers who work in workshops having job classification schemes as provided under Clause 5 of Circular No.122267 dated March 6, 2006 issued by the Honourable Minister of Labour and Social Affairs:

A. Workers Employed Under Indefinite (Unlimited) Employment Agreements

10% of the wage at the end of 1384 plus a daily sum of Rls.5,000 must be added, from the beginning of the year 1385, to the wages of those workers who work in accordance with an employment agreement concluded for an indefinite period, as follows:

The last basic daily wage in 1384×1.1+5000=the basic daily wage in 1385

B. Workers Employed Under Definite (Fixed Period) Employment Agreements

10% of the wage at the end of 1384 plus a daily sum of Rls.15,000 must be added, from the beginning of the year 1385, to the wages of those workers who work in accordance with an employment agreement concluded for a definite and fixed period in a workshop having a job classification scheme.

Note- The salaries and wages of workers to be employed under a contract for a fixed period, after the beginning of the year 1385, in a workshop having a job classification scheme, shall be fixed according to the equation in Clause C below.

C. The Manner of Fixing the Rial Co-Efficient and Table of Wages in 1385

In order to draw up the wage table of workshops having a job classification scheme, the fixed part of wage equation shall be multiplied at 1.1 and 5000 shall be added thereto.

Yn=[a×1.1×(Xn-70)]+[b×1.1+5,000]

Yn shall mean the wages of group n

a shall mean the last rial coefficient in 1384

Xn shall mean the scores of group n, and

b shall mean the basic and minimum salary of the workshop in the year 1384.

The above wage table, in 1385, shall be the basis and criteria for recruitment, increase of grade, fixing the salary, grade, etc. in the workshop concerned.

Note- Considering that the wages of workers employed under fixed term contracts shall be Rls.10,000 more than the wages of workers employed under indefinite contracts in workshops having job classification schemes, therefore, in fixing the wages of workers employed for a limited period, the amount of 15,000 must be used instead of Rls.5,000 to the fixed part or the minimum wages of a workshop having a job classification scheme, i.e. the workers employed for a fixed period, in the such workshops, shall always receive Rls.10,000 per day more than the workers employed for an indefinite period.

D. Impact of the above Increase on other wage levels

Other items of wages, such as the wage allocable to grade, benefits for retention, annuity, etc. must be increased by 10%, as of March 21, 2006, compared with payments at the end of 1384.

Note 1- Fixing the items of posting benefits, difficult conditions of work, wages of new grade, and retention benefits, in 1385, shall be subject to the new coefficient to be determined for 1385.

Note 2- The base wage payable in 1385 under the Table in Clause E of this directive shall not be subject to the 10% increase.

E. Provision for Enforcement of Note 1 of Clause 2 of the Circular Concerning Base Rate in 1385

The table of base rate in the 20 wage-groups in 1385 shall be as follows:

All personnel who, by March 21 2006 and thereafter shall have a job record of at least one year, or one year has passed since their last promotion, shall be granted one higher group, in proportion with their job category, with the calculation of the rate stipulated above.

Table of Base Rates for Groups in All 20 Wage-groups (Rls. per day)

Group 1 2 3 4 5 6 7 8 9 10

Base Rate 1250 1300 1350 1400 1450 1500 1550 1600 1650 1700

Group 11 12 13 14 15 16 17 18 19 20

Base Rate 1700 1850 1950 2050 2150 2250 2350 2450 2550 2650

F. Provisions for Enforcement of Clause 4 of the Circular Concerning Wages Rises Resulting from Promotion

In all workshops where a job classification plan approved by the Ministry of Labour and Social Affairs is being enforced and implemented, the difference between the wages of the previous group with the new group must be paid at the time of promoting the personnel as a compensation resulting from such promotion. In other words, the wage of the promoted worker, from the date of promotion shall actually be the new wage of the new group. The basic wage of the said workers will be the same wage they were receiving prior to promotion, except in cases where according to the job classification scheme in force, a sum of money will be deducted from the wages of the said individuals due to lower levels of education in which case the wages will be rectified in case the said workers will be able to obtain the required educational certificate due for their group.

Note 1- In the workshops where according to their normal procedure, in addition to the rate of wage of the new group, the rate of the previous group will also be paid, the same normal procedure will be followed.

Note 2- In workshops that are not covered by a yet approved jobs classification scheme, payment of additional wage resulting from promotion shall be made in accordance with the general wage regulations and the norms in the workshop.

A. Karam'beighi; Director General-Supervision of Compensatory Systems

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BUSINESS AND ECONOMY