Foreign Investment Law

Foreign Investment Promotion and Protection Act (FIPPA) guarantees the admission, transfer, importation and repatriation of Foreign Capital

Based on FIPPA a broader definition was given to foreign investment, covering all types of investments from “Foreign Direct Investment” (FDI) to different types of project financing methods. Based on FDI, Investment may be made in all areas where the private sector activity is permitted. There is no restriction on the percentage of foreign shareholding and compensation made for losses sustained by the Foreign Investment resulting from prohibition and/or interruption in the execution of financial agreements caused by enactment of law and/or Cabinet decrees, up to a maximum of matured installments, shall be guaranteed

by the Government.

The other supports provided by this act are as follows:

• Streamlined and fast-track investment licensing application and approval process
• Creation of a one-stop shop called the “ Center for Foreign Investment Services” at the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI) for focused and efficient support for foreign investment undertakings in Iran
• Introduction of new legal options governing the government investor(s) relations.
• More flexibility and facilitated regulatory practices for the access of foreign investors to foreign exchange for capital transfer purposes

%80 of the income from producing and mining activities ,which is derived and declared by producing  and mining enterprises of cooperatives of private sectors of whom exploitation licenses are issued , or with whom extraction and sale contracts are concluded, from the beginning of the year 2002,on words by relevant ministries ,shall be exempt from the tax for a term of 4 years beginning from the date of exploitation or extraction the less developed regions ,the exemption shall apply to %100 of the income for a term of years.