Medical and housing expenses are deducted from the amount of tax paid by the people

According to Fars News Agency, quoted by Iran’s Economy and Finance News Network (happy), one of the plans of the 13th government is to increase tax bases in order to achieve tax justice and reduce the reliance of the public budget on oil revenues and income from the sale of natural resources.

In this regard, the Ministry of Economic Affairs and Finance has prepared and submitted a bill entitled Amending the Law of Direct Taxes with the aim of creating a tax base on total income.

One of the features of this bill is paying attention to the expenses of taxpayers, so that the cost of rent or installments of housing purchase facilities, medical expenses, education expenses and such things will be considered as acceptable tax expenses. According to this part of the bill, only income is not the criterion for determining the amount of tax paid, and living expenses will be deducted from the amount of tax paid.

The text of the bill states: “The following text is added to the law as Article 129: Total annual taxable income of Iranian natural persons residing in Iran in relation to the incomes earned in Iran and outside Iran, as well as non-Iranian natural persons residing in Iran in relation to the incomes of education. made in Iran (with the exception of cases that are exempted from paying taxes or subject to zero or separate rates according to the provisions of this law) after deducting exemptions and deductions as described below, it is subject to tax at the rate prescribed in Article 131.

In the following, it is stated in this bill: The following annual expenses are meant as the expenses of the taxpayer and his dependents who have not filed a separate declaration:

1- The cost of medicine and treatment paid up to the limit of the normal tariff announced by the government of the Islamic Republic of Iran, except for the cost of special hotel services provided that it is not compensated through ministries, or government institutions or municipalities or insurance organizations or public benefit institutions or other persons. Also about the disabled and special and difficult patients The cure In addition to the mentioned costs, the cost of their care and rehabilitation is also deducted.

2- Health insurance premiums paid to Iranian insurance institutions for health insurance up to the basic limit.

3- Fees paid to educational centers for formal education until the end of high school according to the tuition fees announced by the Ministry of Education up to the basic exemption of the subject of Part One Paragraph A of Article 129 of this law for each child.
In case of failure to submit documents and cost documents in order to benefit from the deductions of clauses 1 and 3 of this article, according to the guidelines approved by the Minister of Economic Affairs and Finance at the suggestion of the Tax Affairs Organization of the country, it is equivalent to 15% of the basic exemption subject to the subject of clause one of clause a of article 129 of The taxable income of each person is deductible.

4- The cost of rent paid for a residential unit for living subject to the registration of the contract in the National Real Estate and Housing System of the country up to 1.5 times the amount of the basic exemption of the subject of Part 1 Clause A of Article 129 of this law.

5- Interest and fees of the installments of facilities received from authorized banks and credit institutions for the purchase of a residential unit for Modi and Farzan under 18 years of age and dependent on him according to the documents positive Up to one times the amount of the exemption under paragraph one of article 129 of this law, the acceptance of the expenses of this paragraph is conditional on the fact that the share of the mentioned residential unit is placed in the mortgage of the payer of the loan.

If this bill is finally approved and becomes a law, the tax exemptions of classes, classes and departments will be converted into exemptions based on the level of income, so that only if the amount of income is less than a certain amount, people will have zero percent of their taxes. But if it exceeds one number, it will be subject to tax. On the other hand, those who, despite earning more than the specified ceiling, have high living expenses such as medical expenses, rent, loan installments, etc., those expenses are considered as tax expenses. in consideration will be taken

The implementation of the total income tax law and other laws that require accurate identification of people’s income and expenses requires the creation of accurate and online databases and systems. One of these systems is the Modian system and store terminals, which will be unveiled this week at the Tax Affairs Organization. This system, along with the comprehensive business system, real estate and accommodation system, bank transactions, transfer of accounts in the banking network, will determine the possibility of accurate identification of expenses and incomes of natural and legal persons and will provide the possibility of creating tax justice for the government.

end of message/