Iran Ranks First in Purchase of Spanish-Made Machinery in Asia
The Association's representative for Middle East and Asia Miquel Artula speaking to IRNA added that the 97 members had over 17.860 million euro of exports to Iran in the first seven month of 2003.
He said the purchases by Iran of Spanish-Made machinery totalled 16.400 million euros in 2002. On the whole, the Iranian purchasers value the recognized and traditional brand-names, "but, active participation by Spanish firms in the recent years in Iran has introduced Spanish technology to the country." Moreover, Artula said Spanish companies have been able to ink several important agreements with Iranian vehicle manufacturers 'Iran-Khodro' and 'Saipa.'
He said better inventory management and product-related services are among areas where Iran should improve.
On Spanish companies activities in Iran, he said given the affordable production costs and governments' policy of promoting transfer of technology to Iran, many international companies, including Spanish, have opted for production in the country. He said many Iranian companies are currently producing under license from international brand-names.
Minister of Economy and Finance Tahmasb Mazaheri and Spanish Minister of Economy Rodrigo Rato last month signed an agreement to avoid double taxation on trade exchanges.
Mazaheri told reporters that the agreement has envisaged regulations for tax-related fees on investment in both countries.
He said that both Iranian and Spanish companies would be subject to single tax rate on investments.
When Iranian or Spanish companies agree to undertake over 20 percent of a specific project, about five percent of the gross income is subject for tax.
"But, 10 percent of the gross income will be paid in taxes if investment is less than 20 percent of total costs of a project." He said the companies from both Iran and Spain will pay tax up to 7.5 percent of their total gross income.
Mazaheri said that the Iranian and Spanish Central Banks and the state-affiliated banks are exempt from tax in their transactions.