TEHRAN The Majlis in its open session on Wednesday studied the remaining 16 articles of the 26-point bill on encouraging and supporting foreign investment and forwarded the bill to the Guardian Council (GC) for final approval.

Under the bill, foreign capital can be converted to cash, either in rial or other currencies, and be spent on purchases and orders. the interest gained from foreign investment can be transferred abroad after deduction of taxes, duties and legal reserves upon confirmation of the board of foreign investment.

The bill stipulates that part of foreign capital left intact after import within the framework of permits for foreign investment can be exported without being applicable to forex as well as export and import laws and regulations.

According to the legislation, applications from foreign investors would be studied by a special committee in charge of foreign investment. The committee would comprise of deputy minister of finance and economic affairs in charge of organization of investment and economic and technical assistance, deputy foreign minister, deputy head of the Management and Planning Organization (MPO), deputy governor of the Central Bank of Iran (CBI) and deputies of other relevant ministries. The minister of finance and economic affairs would sign the license to be issued by the special committee.

The legislation designates foreign investor as a private sector company and that even if the investor were a foreign state company, this should not interfere with diplomatic relations and the matters or disputes concerning the issue should be dealt with through the respective organs and in line with international trade law. The Parliament made it clear that no privilege will be offered to foreign investors and domestic companies will dealt with on equal footing as their foreign competitors. The legislation further stipulated that government is not entitled to grant any monopoly to any foreign investors and that none of the foreign investments can be exposed to expropriation or nationalization.

The legislation envisaged that if the government decided to take over an enterprise set up by foreign investors, it is required to come to prior terms with the company owners.