Iran

{"ftc_utility":"low","fbar_trigger_notes":"Any Iranian bank account holding more than $10,000 USD equivalent triggers FBAR filing requirements. Maintaining an Iranian bank account as a US person is additionally complicated by OFAC sanctions, which generally prohibit US persons from transacting with Iranian financial institutions. Violations can carry civil and criminal penalties beyond standard FBAR rules.","ftc_utility_reason":"While Iran does levy income tax, the near-total absence of a functioning financial relationship between the US and Iran, combined with OFAC sanctions preventing most financial transfers, means the Foreign Tax Credit is largely impractical. Iranian taxes paid cannot easily be documented or transferred in a manner consistent with IRS Form 1116 requirements. The lack of a bilateral tax treaty further reduces utility.","presence_day_count_notes":"The US State Department has a Level 4 Do Not Travel advisory for Iran. The US has no embassy or consular services in Iran; Swiss Embassy provides limited US consular services. US citizens face severe risk of wrongful detention. While the 330-day physical presence test is technically a US-side IRS rule that does not depend on the host country, practical conditions in Iran make this moot for virtually all US expats. A US person present in Iran for 330 days in a 12-month period could technically qualify, but the State Dept advisory and sanctions environment mean almost no legitimate US expat tax filers reside there.","typical_qualifying_method":"physical_presence","housing_exclusion_available":true,"physical_presence_test_applies":false,"estimated_housing_exclusion_usd":12000,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":false}

{"pension_income":{"notes":"Foreign pension income received by Iranian tax residents is subject to progressive income tax. The government exempts certain domestic pension payments, but foreign-source pension income does not benefit from those exemptions. Top marginal rate is 30%.","tax_rate":0.3,"locally_taxed":true},"social_security":{"notes":"No US-Iran tax treaty or totalization agreement is in force. US Social Security received by a resident of Iran is technically subject to Iranian income tax. Enforcement is not practical given the complete absence of financial information sharing between the two countries.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No treaty exemption exists. Roth distributions could be treated as foreign income under Iranian law, though enforcement against US persons is not practically observed. No bilateral mechanism exists to recognize the tax-paid nature of Roth contributions.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"No US-Iran tax treaty is in force. Distributions from US 401k or IRA accounts received by a US expat residing in Iran would theoretically be subject to Iranian income tax as foreign-source income under Iranian domestic law. Enforcement is largely theoretical given the absence of tax information exchange between the US and Iran. Practical compliance is extremely limited.","tax_rate":0.3,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.3,"notes":"Iran does not have a standalone capital gains tax. Gains from asset sales are generally treated as business or ordinary income and taxed under the progressive income tax schedule, with the top marginal rate at 30%. Real estate transfers are subject to a separate transfer tax.","details":{"tax_type":"Capital Gains Tax","country_name":"Iran","country_iso_code":"IRN","source_references":["Iran Direct Taxation Act (as amended)","Iranian National Tax Administration (INTA)","IMF Country Report on Iran"],"last_verified_date":"2026-06-03","general_description":"Iran has no separate capital gains tax regime. Gains from the sale of assets by individuals or businesses are folded into ordinary income and taxed at progressive rates up to 30%. Real property transfers attract a flat transfer tax rather than a CGT. Stock exchange gains for individual investors have historically benefited from exemptions under Iranian Direct Taxation Act provisions, though specific exemptions are subject to change by annual budget laws.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Gains included in taxable corporate income and taxed at the flat corporate rate of 25% under Article 105 of the Direct Taxation Act."},"individual_capital_gains":{"rate":0.3,"tax_treatment":"No separate CGT; gains taxed as ordinary income at progressive rates up to 30%. Listed equity gains for individuals may qualify for exemptions under specific articles of the Direct Taxation Act. Real estate transfers subject to a separate 5% transfer tax rather than income tax on gain."}}}

{"notes":"Dividends paid by Iranian companies to Iranian resident shareholders are generally exempt from further tax at the shareholder level under Article 105 of the Direct Taxation Act, as corporate profits are already taxed at the entity level at 25%. Dividends paid to non-resident recipients are subject to withholding tax. The practical rate for foreign recipients varies, but a 25% withholding is commonly referenced. US sanctions complicate any practical repatriation.","rates":[{"rate":0,"type":"exempt","notes":"Dividends received by resident individual shareholders from Iranian entities are generally exempt, as profits already taxed at 25% corporate level."},{"rate":0.25,"type":"withholding","notes":"Approximate withholding rate applied to dividends paid to non-resident recipients; no US-Iran tax treaty in force."}]}