TEHRAN – Iran’s tax revenues rose by 52 percent in the previous Iranian year (ended in late March), driven by sweeping digital reforms and improved transparency, according to the head of the Iranian National Tax Administration (INTA).

Mohammad-Hadi Sobhanian, who also serves as deputy economy minister, said on Tuesday that the tax authority has taken major steps toward economic justice and reducing reliance on oil revenues by facilitating compliance for taxpayers, digitizing tax systems, and increasing taxation’s share in the country’s GDP.

Speaking on the occasion of National Tax Day, Sobhanian highlighted several reforms introduced in the previous year, including deadline extensions, enhanced digital services, targeted tax exemptions, and closer cooperation with business guilds.

Sobhanian noted that INTA extended the deadline for submitting tax returns and making payments under Article 100 of the Direct Tax Code until late August 2025.

He also announced improvements to the national taxpayer system, including features such as invoice status checks, batch payment registrations, and optimized tax payment tables — all scheduled to go live from December 21, 2025.

INTA has also made efforts to reduce the administrative burden on small taxpayers and minimize concerns in the retail sector. “By leveraging Article 100 exemptions and organizing public service desks, we’ve fostered greater alignment between the tax system and businesses,” Sobhanian said.

The ceiling for simplified tax filings under Article 100 has tripled, and taxpayers can now benefit from installment plans and online platforms that eliminate the need for in-person visits to tax offices.

Sobhanian said income tax exemptions for the last fiscal year more than doubled, rising from 470 million rials ($9,400) to 1.0 billion rials ($20,000), with a cap of 1.44 billion rials ($28,800) for businesses using the official taxpayer platform.

According to the official, Iran’s tax-to-GDP ratio has increased from 5.7 percent in 2021 to 8.3 percent in 2024. The share of taxes in the national budget has also grown, rising from under 30 percent to about 50 percent.

The tax share of the government’s current expenditures climbed from 40 percent to nearly 70 percent, he said — still below the near-100 percent seen in developed countries. When including payments to social security institutions and municipalities, Iran’s ratio stands at 12 to 13 percent, versus over 20 percent globally.

EF/MA