Setting up and running a payroll in Iran
Iran is a regionally significant country in Western Asia. Its developing economy has a huge amount of potential, and it can present many diverse opportunities for the right businesses looking to expand their operations.
If your business is planning an expansion into Iran, it is likely that you’ll need to employ a local workforce and set up an in-country system for Iran payroll. To do this, you will generally need to establish an entity in Iran and follow the country’s unique set of business and employment regulations. This can be a long and drawn-out process, potentially causing delays to your expansion efforts and resulting in spiraling costs.
At Horizons, we provide comprehensive Iran payroll outsourcing for businesses from any industry. Our team of experts can build and run your Iran payroll, giving you full flexibility to focus on the important details of your Iranian operations, even if you haven’t established an entity in Iran.
If you have an entity
For any organization that already has an official entity in Iran, we can set up and run your in-country Iran payroll outsourcing, managing everything from HR to contracts and compliance work.
This is a great option for larger businesses and those aiming for a medium to long-term operation in Iran.
If you don’t have an entity
If your company does not have an established entity in Iran, we can hire your new employees through our Iranian subsidiary. This service enables your organization to bypass the long and complex process of establishing an entity. We can also provide our standard Iran payroll outsourcing and setup service to help you focus solely on a successful expansion into Iran.
Expanding your business in Iran with Horizons
Iran payroll guide
Taxation and withholdings in Iran
In Iran, workers and employers need to contribute to the Social Security Organization, which covers various social benefits such as a pension, parental leave, and more. Employers are required to contribute 23%, while workers must contribute 7%.
Income is taxed progressively, ranging from 0% to 20% depending on income level.
Entitlements and terminations rules in Iran
Rules surrounding terminations and entitlements should always be laid out in your workers’ contracts of employment. In Iran, there are strict regulations in place for dismissal of employees, and their employers generally need to have proper cause to terminate anyone.
How to establish Iran payroll outsourcing
To hire employees in Iran, you will generally need to set up a payroll, register an Iranian entity, and open an Iranian bank account. The country is not always well equipped to manage this process, so it is possible to experience significant delays that could go on for months.
At Horizons, we provide extensive Iran payroll outsourcing services, giving businesses of all kinds everything needed to make your organization compliant and ready to successfully expand into the country. For organizations without a registered entity in Iran, we can also use our Iranian subsidiary to act as employer of record for your Iranian employees.