Tax rules for works of art
Tax laws for works of art in Iran can be a bit complicated, as it depends on various factors such as the type of work of art, how it is sold, and the tax status of the artist. However, in general, it can be said that the tax laws that we will discuss further apply to works of art in Iran.
Learn about value added tax in the video below
Tax exemptions in tax laws for works of art
- Income from artistic activities: According to paragraph (l) of Article 139 of the Law on Direct Taxes, publishing, and press, cultural and artistic activities that are carried out with the permission of the Ministry of Culture and Islamic Guidance are exempt from paying taxes. This exemption includes the following:
Selling works of art
Performing shows and concerts
Holding art exhibitions
Publication of art books and magazines
- Sale of works of art in Tehran auction: According to the law, all works of art that are sold in Tehran auction with the permission of the Visual Arts Center and under the supervision of the Ministry of Culture and Islamic Guidance are exempt from paying taxes.
Exemption limits
- Tax exemptions are subject to the provision of permits: To benefit from tax exemptions, the artist must obtain the necessary permits from competent authorities such as the Ministry of Culture and Islamic Guidance or the Visual Arts Center.
- Tax exemptions have a ceiling: Some tax exemptions, such as the Tehran auction tax exemption, have a ceiling. For example, Tehran auction tax exemption can be applied up to 2 billion and 600 million rials per year.
- Tax laws are constantly changing: Artists should regularly learn about changes in tax laws and seek tax advice when needed.
Income tax of natural persons in tax laws for works of art
- Income from the sale of works of art: If the artist earns more than the set quota through the sale of works of art, he will be subject to income tax. The tax rate on the income from the sale of works of art depends on the business income tax rate in the relevant year.
- Royalty Tax: If the artist transfers the copyright of his artwork to another person, he will be subject to royalty tax. The royalty tax rate is 10%.
VAT in the tax laws for works of art
Value-added tax (VAT) is a type of indirect tax that is applied to the consumption of goods and services. This tax is added to the added value at each stage of the chain of production and distribution of goods or services, from the producer to the final consumer.
In the case of works of art, VAT is applied as follows:
Art sales tax
The sale of works of art by artists is subject to a 9% value-added tax.
Art galleries and institutions are also required to pay a 9% value-added tax at the time of selling works of art.
Art export tax
The export of works of art from Iran is exempt from value-added tax.
Art import tax
The import of works of art to Iran is subject to a 9% value-added tax.
Artists can apply for a value-added certificate. This certificate allows them to offset the value-added tax they pay when they buy the raw materials and supplies they need.
Obtaining a certificate of added value in the purchase and sale of works of art
A value-added certificate is a document that shows the amount of value-added tax paid at each stage of the production and distribution chain of a product or service. When it comes to buying and selling art, getting a value-added certificate can have many benefits for artists, buyers, and sellers.
The benefits of receiving a value-added certificate
For artists
- The possibility of compensating the value-added tax paid at the time of purchasing raw materials and needed supplies
- Increasing transparency in transactions
- Creating healthy competition in the art market
For Buyers
- The possibility of receiving a discount if the seller presents a certificate of added value
- Ensuring the correct payment of value-added tax
For sellers
- The possibility of increasing the selling price of works of art
- Attracting more customers
Conditions for receiving a value-added certificate
- Registration in the value-added tax system: artists, buyers, and sellers of works of art must register in the value-added tax system to receive a value-added certificate.
- Submission of documents and documents: Applicants to receive a value-added certificate must submit documents and documents related to the transaction, such as invoices, contracts, etc., to the tax department.
- Payment of Value-Added Tax: Applicants must pay the value-added tax related to the transaction to the account of the Tax Administration.
Summary of steps to get value value-added certificate:
- Registration in the value-added tax system
- Submitting documents related to the transaction to the Tax Administration
- Payment of value-added tax related to the transaction
- Receive a certificate of added value from the tax administration
Important points of tax laws for works of art:
- Artists are required to submit their tax returns to the tax department on time.
- In case of failure to submit a declaration or failure to pay tax, they will be fined.
- To know more detailed information about the tax laws related to works of art, you can refer to the website of the Tax Administration of the country or competent authorities such as the Ministry of Culture and Islamic Guidance.
- Various tax exemptions and incentives are intended to support artists.
- Tax laws and regulations are changing regularly.
- Always be aware of current laws and regulations before making any art transactions.
in the end
Tax laws related to works of art in Iran are complex and diverse. Artists must go to the Tax Administration to register their activities, register in the VAT system, and submit a tax return. Be careful that non-payment of taxes can result in fines and legal penalties.
It is recommended that artists regularly communicate with competent authorities to be aware of tax laws and regulations and to keep their information up-to-date. For more detailed information about the tax laws related to works of art, you can refer to the website of the country’s tax affairs organization or consult a tax consultant.
For more information, visit the following websites
دفتر توسعه فرهنگ و مطالعات اقتصادی هنر
