Iran

Employer of Record (EOR) in Iran

Only 399 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Iran . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Iran.

Employer of Record people
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Currency
Iranian Rial
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Capital
Tehran
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Region
Asia
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Language
Persian
Hire remote employees
Population
83992949
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GDP
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GDP growth
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Ease of doing business
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World GDP share

1. Grow your team in Iran with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Iran , particularly if you don't have established local relationships. You can hire employees in Iran effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Iran is a nation in Western Asia that is also known as Persia and is officially known as the Islamic Republic of Iran. It is bounded on the west by Iraq and Turkey, on the northwest by Azerbaijan and Armenia, on the north by the Caspian Sea and Turkmenistan, on the east by Afghanistan and Pakistan, and on the south by the Gulf of Oman and the Persian Gulf. It has a total land area of 1,648,195 km2 (636,372 sq mi), making it the fourth-largest nation in Asia and the second-largest in Western Asia after Saudi Arabia. Iran has a population of 85 million people, ranking it 17th in the world. Tehran is the capital and biggest city, followed by Mashhad, Isfahan, Karaj, Shiraz, and Tabriz.

The nation is home to one of the world's oldest civilizations, dating back to the fourth millennium BC with the founding of the Elamite kingdoms. It was first unified by the Medes, an ancient Iranian people, in the seventh century BC, and reached its territorial apex in the sixth century BC, when Cyrus the Great established the Achaemenid Persian Empire, which grew to become one of history's largest empires and has been described as the world's first effective superpower. In the fourth century BC, Alexander the Great defeated the Achaemenid Empire, which was thereafter split into various Hellenistic republics. In the third century BC, an Iranian insurrection formed the Parthian Empire, which was replaced in the third century AD by the Sassanid Empire, which remained a significant international power for the following four centuries. In the seventh century AD, Arab Muslims seized the empire, resulting in the Islamization of Iran. During the Islamic Golden Age, it became a significant center of Islamic culture and scholarship, with its art, literature, philosophy, and architecture spreading across the Muslim world and beyond. Before the Seljuk Turks and Mongols invaded the area, a succession of local Iranian Muslim dynasties arose over the following two centuries. The native Safavids re-established a united Iranian state and national identity in the 15th century and converted the country to Shia Islam. Iran regained its position as a major international power under the reign of Nader Shah in the 18th century, however by the 19th century, a series of confrontations with the Russian Empire had resulted in considerable territorial losses. The Persian Constitutional Revolution occurred in the early twentieth century. Attempts to nationalize its fossil fuel supplies from Western firms ended in an Anglo-American revolution in 1953, resulting in a more authoritarian government under Mohammad Reza Pahlavi and increasing Western political dominance. In 1963, he launched a far-reaching set of changes. Following the Iranian Revolution, Ruhollah Khomeini, the country's first Supreme Leader, created the modern Islamic Republic in 1979.

Iran's government is an Islamic theocracy with features of presidential democracy, with ultimate power placed in an authoritarian "Supreme Leader," Ali Khamenei, who has held the post since Khomeini's death in 1989. The Iranian government is largely seen as authoritarian, and it has been severely chastised for substantial restrictions and violations of human rights and civil freedoms, including multiple violent suppressions of huge rallies, rigged elections, and restricted rights for women and children. It is also a focal point for Shia Islam in the Middle East, challenging the region's long-standing Arab and Sunni control. Since the Iranian Revolution, the nation has been commonly seen as Israel's and Saudi Arabia's main foe. Iran is also regarded as one of the most important participants in Middle Eastern politics, with its government directly or indirectly engaging in the bulk of recent Middle Eastern crises.

Iran is a regional and medium power with a geopolitically important position in Asia. It is a founding member of the United Nations, the European Union, the Organization of Islamic Cooperation, and the Organization of Petroleum Exporting Countries. It has abundant fossil fuel reserves, including the second-largest natural gas supply and the fourth-largest known oil reserves. The rich cultural past of the nation is represented in part through the country's 26 UNESCO World Heritage Sites. Iran, a historically multinational state, maintains a diversified country comprised of multiple ethnic, linguistic, and religious groups, the biggest of which are Persians, Azeris, Kurds, Mazandaranis, and Lurs.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Iran is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Notice period

Probation period

Severance pay

6. Working hours

There is no information about the working hours for this country.

General working schedule

Overtime

7. Minimum wage

There is no information about the minimum wage for this country.

Iran's minimum wage is set annually at 712,000 Iranian tomans ($215) (equivalent to 7120000 rials). It is determined by sector and region.

8. Employee benefits

There is no information about the employee benefits for this country.

Iranian nationals, expatriates, and employers are all required to contribute to the Iran Social Security Organization (SSO), which runs a state pension scheme and provides unemployment, sickness, maternity, and disability benefits.

Employees are entitled to an end-of-service benefit if their employment is terminated (for any reason). This benefit is calculated using a statutory formula based on the employee's salary and length of service.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Iranian resident businesses are taxed on their global revenue.

Non-resident corporations are taxed in Iran on revenue earned in Iran.

If a foreign business establishes a branch in Iran, the branch will only be taxed in Iran on revenues generated from work done inside the nation.

Corporate taxable income comprises earnings from (1) a trade or business; (2) interest; (3) discounts; (4) capital gains; (5) dividends; (6) rentals; (7) royalties; (8) management fees, and so on.

In Iran, the normal corporate income tax rate is 25%. Companies listed on the Stock Exchange and Commodity Exchange are eligible for a corporate income tax rate of 22.5 percent.

A 3% withholding tax is levied on payments made by businesses to service providers (1) and rental payments (2).

The ultimate transfer of real estate is taxed at 5%, whereas the transfer of goodwill is taxed at 2% of the transferred goodwill's value.

Iranian law specifies a number of tax-exempt activities, including the operation of cooperative organizations and the conduct of commerce in underdeveloped areas.

Certain tax breaks are available to companies who (1) operate in free trade zones or (2) do business in the manufacturing, industrial, and mining sectors.

Individual income tax

In Iran, both resident and non-resident people are taxed on income earned through work connections inside Iran's borders, as well as any other income earned in Iran.

Individuals (i.e., residents and non-residents working with a work permit in Iran) are liable to a personal income tax on all salaries, wages, and allowances given to them.

Employees are free from employment income taxes if their yearly taxable income is less than 4.090 EUR, according to the new employment income tax legislation that went into effect in March 2015. A 10% tax is imposed on employment income ranging from 4.090 EUR to 28.600 EUR. Annual employment income in excess of 28.600 EUR is subject to a 20% tax.

Individuals' business and professional income is taxed under a progressive tax system. On yearly business or professional income above 32.500 EUR, the maximum tax rate of 35% is imposed.

VAT, GST and sales tax

The VAT rate in Iran is set at 9%. There are, however, goods and services that are subject to a higher rate.

All types of cigarettes and tobacco products are imposed a VAT rate of 15 to 35 percent.

All types of petrol (gasoline) and jet fuel are imposed a VAT rate of 20 percent.

The following goods and services are also exempt from VAT:

a) Unprocessed agricultural products;

b) Livestock and live poultry, aquatic products, honey bees and silkworms;

c) All types of fertilizers, pesticides, seeds and saplings;

d) Bakery flour, bread, meat, sugar, rice, cereals and soya, milk, cheese, shortening and baby formula;

e) Books, press, notebooks and all types of printing papers, writing pads and papers and press papers;

f) Passenger goods for personal use, as exempted under the Export-Import Regulations ;

g) Immovable property;

h) All types of medicine, medical consumables, medical services (human, animal or plant) as well as rehabilitation and other supportive services;

i) Services subject to payment of salary taxes envisaged in the Direct Taxation Law;

j) Banking and credit services rendered by banks, credit institutes and cooperatives, authorized interest-free loan funds and cooperative funds;

k) Public transportation services and urban and inter-city roads, railway, air and sea passenger transport services;

l) Hand woven carpets;

m) All types of research and training services, as stipulated in a By-Law to be approved by the Council of Ministers;

n) Animal and poultry feed; and

o) Export of goods and services from official exit points. Any tax paid on account of such exports shall be reimbursed (as regards commodities) upon submitting a certification of the customs certifying the export of goods. Value Added Tax (VAT) does not apply to free trade zones (FTZ) in Iran. However, goods and services entering Iran's customs territory from FTZs will be subject to payment of VAT according to the law.

10. VISA and work permits

There is no information about VISA and work permits for this country.

Iranian officials are considering a visa waiver scheme in which visa restrictions for 60 nations would be abolished as part of Iran's effort to attract more visitors.

When visiting Iran, dual nationals of Iran and another country are regarded as Iranian citizens and must hold an Iranian passport. This includes anybody whose mother, father, spouse, or children born in another country are Iranian.

As a result of US sanctions imposed on anybody who visited Iran after 2011, Iran no longer affixes visas to passports or stamps them upon entrance. In November 2018, the director of Iran's Cultural Heritage, Handicrafts, and Tourism Organization (ICHTO) declared that the government would no longer stamp or place stickers in foreign visitors' passports in order to alleviate their anxieties about going to other countries after leaving Iran. In June 2019, Iran's President directed the Interior Ministry to carry out the decision to not stamp foreigners' passports. To get a visa to Iran, you must have travel insurance as of 2011.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

This information is currently not available.

With Rivermate being your Employer of Record (EoR) in Iran, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

This information is currently not available.

Payment currency

This information is currently not available.

13.Opening a subsidiary in Iran

There is no information about the working hours for this country.

How to set up a subsidiary

Subsidiary laws

13. Why choose Rivermate as your Employer of Record / PEO in Iran

Establishing an entity in Iran to hire a team takes time, money, and effort. The labor law in Iran has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Iran simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Iran give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Iran via our Employer of Record (EOR) / PEO solution.

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