Individual Tax Files in Iran: How They Open, and How to Keep Them Clean

Many small businesses believe for years that they have no tax file, when in fact the file exists and simply has not been looked at yet. This note is for sole traders, landlords, professionals and consultants who want to understand how their file is built, what it obliges them to do, and where it eventually gets stuck.

What a tax file actually is

Your tax file is the collection of registrations, returns, assessment notices and payments held under an identifier at the tax office covering your place of activity. Contrary to common belief, one individual can hold several files at once, each with its own duties and deadlines.

The practical consequence: closing one of these does not close the others. A landlord who settled a business file still carries the rental file.

Registration and the economic number

"How do I get an economic code?" is still a common question, and the answer has changed. Under current rules an individual's economic number is their national ID number, and legal entities use their national identifier. You are not obtaining a new code; you are completing registration and activating an electronic file.

1. Pre-register on the taxpayer registration portal using your national ID and a mobile number in your own name.
2. Complete identity details, business address, activity type and bank information.
3. Have the address validated so the correct local tax office is assigned.
4. Follow the tracking code through to "registration complete".
5. Register the bank account used for the business and link any card payment terminal to the correct file.
6. Check whether your activity brings you into the VAT system and the taxpayer e-invoicing system.

Grouping and bookkeeping duties

The Article 95 regulations split businesses into three groups by prior-year turnover, and place certain activities — factory owners, hospitals, hotels, currency exchanges, gold dealers, importers and exporters — in the first group regardless of size.

• Group one: formal journal and ledger, stamped before the fiscal year begins.
• Group two: periodic income and expense statements with supporting documents.
• Group three: an annual summary of income and expenses.

The rial thresholds are revised annually, so check the current notice. The point that catches people out is the timing: this year's bookkeeping duty is set by last year's turnover, and the books must be stamped before the year starts.

Returns and the Article 100 route

The business income return is due by the end of Khordad, roughly late June. Smaller taxpayers may be able to use the Article 100 proviso form and pay a fixed amount without a full assessment, subject to a ceiling set each year. It does not suit everyone; I have covered when to avoid it in the Article 100 proviso.

Inquiries: where a dormant file surfaces

Most people learn the state of their file only when an inquiry stops them.

Dormant files, the costliest mistake

A shop closes, a business is handed over, the owner takes a salaried job — but the tax file does not close itself. Later years are treated as non-filing, estimated tax is raised and penalties accumulate. Years afterwards, an inquiry for a property sale or a loan produces a number bearing no relation to actual income.

If you are in that position:

1. Obtain a list of all your files from the tax office covering your place of activity.
2. Identify open years and any notices already served for each.
3. Object in writing to anything still within its deadline; the route is in tax audits and defence submissions.
4. For finalised debt, apply for instalments and penalty relief.
5. Notify closure of the activity formally, attaching evidence such as a terminated lease or cancelled licence.
6. Obtain and keep a clearance certificate once everything is settled.

The minimum discipline that keeps a file healthy

• One dedicated bank account for the activity, separate from household money; the reasoning is in separating personal and business accounts.
• Simple but continuous monthly filing of income and expense documents, rather than a June scramble.
• An annual review of registered payment devices and the address on file.
• Keeping phone number and address current, since electronic service of notices relies on them.

Key takeaways

• An individual's economic number is their national ID; the task is completing registration, not obtaining a code.
• One person can hold several tax files, and settling one does not settle the rest.
• Prior-year turnover sets this year's bookkeeping obligations, and books must be stamped in advance.
• Article 186 and 187 inquiries are usually where a neglected file first surfaces.
• Notify closure formally; a dormant file gets more expensive with time, not more forgotten.