|
FREE
TRADE-INDUSTRIAL ZONES
As
reflected in its preface, the Law On the Manner of Administration
of the Free Trade - Industrial Zones was passed for the express
purpose of facilitating comprehensive, sustainable social and economic
development. The legislation foresees the accomplishment of infrastructural
requirements, boosting social development and generally promoting
qualitative and quantitative economic growth. The law encourages
foreign and domestic investment; international banking participation;
high technology industrialization and promotes an active presence
for the Free Zones in global and regional markets. The three Free
Trade-Industrial Zones are the islands of Kish and Qeshm in the
Persian Gulf and Port Chahbahar on the southern border of the Islamic
Republic of Iran.
Which rules govern the economic activities in the Free Zones?
The
provisions of the Law on the Manner of Administration of the Free
Trade-Industrial Zones with subsequent amendments and the relevant
decrees of the Council of Ministers are the primary legal sources
for regulating economic activities and enterprises in the Free Zones.
Is
there any independent authority for administering the Zones?
Yes,
there is. Each Free Zone is administered by its own Authority and
is organized as a company, with an autonomous legal status. The
company's capital belongs to the government of the Islamic Republic
of Iran. Issuance of permits for all manner of authorized economic
activities, construction of buildings and installations and undertaking
various occupations by natural and legal persons, within the boundaries
of a Free Zone, rests solely with the respective Authority. The
Authorities are empowered to implement all regulations pertaining
to the establishment of production units, importation and exportation
of goods, employment of manpower, social security and insurance,
issuance of entry visas to foreign nationals, and the like.
What
are the conditions for buying and leasing properties in the Free
Zones?
The
utilization of land and national resources belonging to the government
within the Free Zones and the sale or lease of properties to Iranian
nationals, whether natural persons or companies, are determined
by each Authority according to the respective regulations. As for
private ownership of Iranian nationals residing in the Free Zones,
they shall enjoy the same rights of ownership of land and properties
that prevail in the rest of the country. Renting of land to foreign
nationals is permitted. However, the sale of land to foreigners
or to companies whose capital is wholly or partially owned by foreigners,
is prohibited.
Are
there any special advantages foreseen in the rules for investors
in the Zones?
All
natural and legal persons and institutions, whether Iranian or foreign,
as well as international organizations, may either independently
or jointly with each Authority and their affiliated companies, or
jointly with each other, invest in the Zone. Foreign investors may
participate in the economic activities of the Free Zone in any investment
ratio they wish to. The legal rights of foreign investors whose
investment is approved by the Council of Ministers, are guaranteed
and protected. Fair compensation for damages shall be made by the
government, in cases where the capital of foreign investors is nationalized
or expropriated.
Repatriation
from the Free Zone of net profits, the initial capital and gains
resulting from economic activities of foreign investment is permitted.
The authority of each Free Zone is obliged to issue a permit of
transfer within one week from the date of the receipt of an application
for such repatriation. Investors may transfer their shares to other
investors with the approval of the respective Authority.
In
principle, the movement of capital and expatriation of profits generated
by economic activities and commercial operations in the Free Zone
is free and permitted, without let or hindrance.
What
things are considered capital under the rules of the Free Zones?
As
defined in Article 3 of the Regulations on Investment in the Free
Zones, capital shall include:
The national currency, i.e., the Rial and
foreign currencies convertible in the Free Zones; machinery, equipment,
accessories and tools of work; industrial property rights resulting
from patents, technical know-how, trademarks and commercial names;
land air and sea transport vehicles related to the subject of investment;
all or part of the transferable net profit obtained in the Free
Zones and added to the principal capital or utilized in other activities
authorized under the rules of the Free Zones.
In certain cases, at the discretion of the
Free Zone Authority, raw materials and semi-manufactured parts may
be designated as a portion of the foreign investment.
In
the Free Zones, how are disputes between the foreign investor and
the Iranian partner of the joint-venture settled?
Such
disputes are resolved on the basis of written contracts and agreements
concluded between the parties concerned. The settlement of differences
can be achieved by means such as conciliation and arbitration or
court litigation.
How
is the registration of companies and intellectual properties accomplished?
Registration
of ships, vessels and planes as well as companies, institutions
and branches of Iranian or foreign companies shall be established
in the Free Zone, upon submission of the required documentation.
The Registration Bureau of the Zone shall also handle the applications
for registration of trademarks and names, patents, and industrial
designs.
Are
export and import activities completely unrestricted in the Zones?
The
exchange of goods between each Zone and outside the country is excluded
from the provisions of the Export/Import Regulations. However, exchange
of goods between the Zone and the rest of the country, whether of
a commercial nature or by travelers, is governed by the general
national regulations on the export and import of goods. Importation
of goods produced in the Free Zones, into other parts of the country,
is exempt from payment of all or a part of customs duties and commercial
benefit tax, equal to the added value thereof in the Zone. Importation
of goods produced in the Free Zone in which all or parts of their
raw materials are supplied domestically, shall be exempt wholly
or partially from payment of customs duties and commercial benefit
tax, in proportion to the domestic raw materials component of the
product.
And
the taxes?
Natural
and legal persons, whether Iranian or foreign nationals, who are
engaged in any kind of commercial or manufacturing activities in
the Free Zones, are exempt from payment of tax on their revenues
and assets for fifteen years, as from the date their business operation
commences.
Do
Foreigners need visas for entering the Free Zones?
For
direct entry into and exit from each Free Zone through authorized
points, foreign nationals are not required to obtain visas in advance.
The police shall affix the seal of a residence permit on the valid
travel documents of such foreign citizens. The respective residence
permit is issued for a period of two weeks and may be extended up
to six months upon the request made by the Authority. For entry
into Free Zones through the mainland of Iran, foreign nationals
are obliged to obtain a visa from the Iranian consulates abroad.
Foreigners who wish to travel to other parts of the country after
their entry into the Zone, are required to obtain a permit from
the local representative office of the Iranian Foreign Ministry.
Are
all types of banks allowed to operate in the Free Zones?
Establishment
of Iranian banks and credit institutions with domestic and foreign
capital, as well as setting up branches of Iranian and foreign banks
and credit institutions, are permitted in accordance with the respective
regulations. The banks can be engaged in operations like opening
letters of credit and rendering similar services to businesspersons.
Offshore activities are also allowed for the banks, if they use
foreign currencies. Foreign exchange dealers may operate in the
Zone upon the authorization of the Authority.
And
Insurance Companies?
Establishment
and activity of Iranian insurance firms with domestic and foreign
capital, opening of their branches and representatives offices as
well as setting up of insurance agency institutions are allowed
in the Free Zones on the basis of the rules set forth by the Council
of Ministers.
What
about Employment and Social Security in the Free Zones?
Provisions
regarding labor and social security regulations are more flexible
in the Free Zones, in comparison with the rules prevailing on the
mainland. Employment may be based on a contract according to the
mutual agreement of the employer and employee, with the right of
cancellation of the work contract applicable for both parties. In
this context, the employer is allowed to lay off workers after payment
of due compensation.
Regulations
on Monetary and Banking Operations in Free Trade--Industrial Zone
of the Islamic Republic of Iran
Article
1
In
these Regulations, the following terms are used in lieu of the relevant
phrases:
Regulations:
Regulations on Monetary and Banking Operations in the FreeTrade-Industrial
Zones of the Islamic Republic of Iran.
Authority:
The organization of each of the Free Trade-Industrial Zones of the
Islamic Republic of Iran.
Zone:
Each of the Free Trade-Industrial Zones of the Islamic Republic
of Iran.
Bank
Markazi: Central Bank of the Islamic
Republic of Iran.
Bank:
Bank and branches which are authorized to operate in a Zone.
Branch:
A bank branch in a Zone that is a unit of an Iranian or foreign
bank (the parent bank) which engages in authorized banking activities
in accordance with the parent bank's charter and within the framework
of the Zone's laws and regulations.
Institution:
A non-bank credit institution which is established and operates
in a Zone in accordance with the provisions of these Regulations.
Offshore
Banking: Conducting various banking
operations solely in foreign currencies.
High
Council: The high council of the Free
Trade-Industrial Zones of the Islamic Republic of Iran.
Article
2
The use of the words "bank" and "institution"
in a Zone is authorized solely in compliance with the provisions
of these Regulations.
Note
Banks that obtain authorization for offshore
banking activities are required to affix the term "offshore" to
the name of their bank.
Article
3
The establishment of an Iranian bank and institution
and the opening of bank and institution branches, whether Iranian
or foreign, is conditional upon approval by Bank Markazi, with the
proposal by the Authority and ratification of the majority of the
member of the High Council of Free Zones.
Note
1
Banks that intend to engage in offshore banking
operations are required to obtain special authorization for above-mentioned
activities from Bank Markazi, upon proposal by the Authority.
Note
2
The establishment of foreign exchange dealership
is possible upon the permition of the Authority.
Article
4
The articles of association of the banks and
institutions and any modification thereto must be approved by the
majority of the members of the High Council of Free Zones after
suggestion of the Authority and confirmation of Bank markazi.
Article
5
The registration of banks and institutions
in a Zone is contingent upon issuance of the permit subject of Article
(3) of these Regulations. The registration office in a Zone is required
to demand the said permit prior to the registration of banks and
institutions.
Article
6
The branches of the mainland's banks which
are established in a Zone before the ratification of these Regulations,
shall be managed, as before, in accordance with the regulations
and rules of their parent bank.
Article
7
A bank may be established only as a public
joint stock company with registered shares and an institution only
as a public or private joint stock company with registered shares,
in accordance with the provisions set forth in the law approved
in 1347 (1968) , amending part of the Commercial Code, in the following
manner:
- Banks
whose capital belong to the Iranian banks or government organizations
for a ratio exceeding fifty one percent (5 %).
- Institutions
whose capital belong to Iranian or foreign natural or legal persons.
Article
8
The minimum capital, whether contribution or
working capital, of Zone banks and institutions mentioned in Article
(7) of these Regulations are determined as follows:
- Iranian
banks: At least 15 billion Rials (15,000,000,000), all of which
should be deposited in cash with Bank Markazi.
- Iranian
institutions: At least 5 billion Rials (5,000,000,000), all of
which should be deposited in cash with Bank Markazi.
- Foreign
bank branches: At least 5 million (5,000,000) dollars all of which
shall be deposited with Bank Markazi.
- Foreign
institutions: At least five million (5,000,000) dollars, all of
which should be deposited with Bank Markazi.
Article
9
Establishment of branches, sub-branches and
representative offices by the banks and institutions set up in a Zone
is permitted, upon proposal by the Authority and authorization by
Bank Markazi.
Article
10
After obtaining the permit for establishment,
subject of Article 3 of the Regulations and having registered in
registration office of the Zone, banks and institutions may commence
their activities in compliance with the provisions of these Regulations
and upon submission of the following detailed documents to the Authority:
- Notice
of registration published in the Official Gazette;
- One
copy of the registered Articles of Associations.
- Notice
of the address of the Head Office.
Article
11
Monetary and credit guidelines and policies
of a Zone shall be as stated below:
- All
banks and institutions and their branches that have obtained permits
to operate in the Free Trade-Industrial Zones and are engaged
in activities in the Zones are governed by these Regulations and
the Law on Non-usury Banking Operations.
- While
adopting the monetary and credit policies, Bank Markazi shall
make special arrangements for the Zone's banks and institutions
in order to facilitate investments in Zone and to safeguard their
competitive position vis-a-vis the Free-Zones of other countries.
Article
12
Banks subject to Note (1) of Article (3) of
the Regulations are not authorized to accept deposits and to grant
credit facilities in Rials.
Article
13
Rules governing the foreign exchange operations
and transactions by the banks and institutions in a Zone are as
follows;
- inflow
of foreign exchange in any manner from a Zone to the mainland
is permitted.
- Outflow
of foreign exchange from the mainland to a Zone shall be subject
to the rules and guidelines in the mainland.
- Upon
compliance with the provisions of these Regulations and the rules
of banks and institutions are permitted, within the framework
of the internationally accepted banking rules and principles,
engage in foreign exchange operations and services such as the
following:
(1) Maintaining correspondence relationship
with other banks:
(2) Conducting all kinds of operations relating
to documentary letter credit, bills for collection, foreign exchange
letter of guarantee and foreign exchange money order.
(3) Foreign exchange deposits in various forms
that the banks and institutions accept must be in internationally
traded currencies as listed by Bank Markazi.
(4) Purchase and sale of foreign exchange.
(5) Upon approval by Bank Markazi, issuance
and purchase and sale of bonds, shares and investments.
(6) Transactions in gold and silver.
(7) Obtaining various kinds of credit facilities.
(8) Granting various kinds of credit facilities.
- Commissions
on banking operations, the buying and selling rates of foreign
exchange, interest paid on various deposits as well as interest
charged for facilities granted shall be determined by free market
conditions.
- Foreign
exchange dealers are allowed solely to buy and sell foreign currencies
whose rates are fixed on the basis of supply and demand.
- Transfer
of funds, whether Rial or foreign exchange, by foreign exchange
dealers shall be conducted exclusively through Zone banks and
institutions.
Article
14
Banks and institutions established in a Zone
are not entitled to increase their capital by means of re-evaluation
of their assests.
Article
15
Banks and institutions of a Zone are required
at all times to deposit with the Bank Markazi a portion of their
deposits as the statutory deposit in ratios determined by Bank Markazi;
the ratios of statutory deposits may vary in terms of the type of
deposits and the scope of the activities of the banks and institutions;
however, such ratio shall not be less than ten per cent (10%)nor
exceed thirty per cent (30%).
Article
16
Banks and institutions of a Zone are required
to retain a portion of their annual net profits as legal reserve;
the ratios of these reserves shall be a minimum of fifteen percent
(15%) and a maximum of twenty percent (20%) of the net profits;
continuation of such a retention shall be optional when the accumulated
amount of such reserves has reached the amount of the capital.
Article
17
All foreign currency assets and liabilities
of the banks and institutions subject of paragraph (a) of Article
3 of the Regulations must be converted at the rate relevant foreign
exchange as at the end of each financial year. The differential
resulting from such conversion of assets and liabilities whose maturity
dates exceed.
Article
18
Banks and institutions of a Zone are not authorized
to accept their own shares as security for granting facilities.
Article
19
For the purpose of mobilization of financial
resources, the banks and institutions of a Zone are authorized to
issue bonds, participation and investment instruments. Rules governing
the issuance of such instruments shall be approved by Bank Markazi.
Article
20
banks and institutions of a Zone are not authorized
to undertake the following operations:
- Purchase
and sale of goods, except gold and silver, directly through banks
and institutions of a Zone for commercial purposes;
- Transactions
in immoveables exceeding the ceiling determined by Bank Markazi,
except the banks and institutions whose principal purpose is transactions
in immoveables;
- Purchase
of shares and participation in the capital of one or more companies,
and or purchase of securities for their own account in amounts
exceeding the ceiling set by Bank Markazi;
- Granting
of credit facilities to the Managing Director, and members of
the Board of Directors and companies in which they hold interest,
in amounts exceeding the ceiling set by Bank Markazi;
- Granting
of credit facilities to the member of the Board of Directors and
the directors of the Authority and top-ranking officials, directors
of the departments and inspectors of Bank Markazi, unless in compliance
with special regulations to be approved by Bank Markazi;
Rules for implementing this Article shall
be the same as the relevant rules applicable to the banks and institutions
in the mainland.
Article
21
In the event that the capital of a bank or institution
of a Zone, as a result of the losses sustained, falls below the minimum
amount stipulated in Article 8 of these Regulations, the Capital must
be replenished within a maximum period of six months.
Article
22
Bank Markazi is empowered to exert supervision
on the activities of the banks and institutions of a Zone through
utilizing the devices and mechanisms provided for in the Monetary
and Banking Law.
Article
23
Banks and institutions subject of Note (1)
of Article (3) of these Regulations are exempted from the provisions
of Article (22), and the supervision of Bank Markazi shall be effected
through the following mechanisms:
- To
pay their legal deposits for each month to the account of Bank
Markazi, in the amounts set by Bank Markazi, not later than 25th
day of the next month.
- To
keep the headings of their accounts, books and financial statements,
as are used and to the extend possible, in accordance with the
specific forms.
- To
observe the international standards set by Basle Committee, Switzerland,
on capital sufficiency; in case of the branches of the offshore
banks and institutions in a Zone, their contribution or paid-in
capital shall be counted as their capital in computation of their
capital sufficiency.
- To
send to Bank Markazi all the required information and statistics
in the following manners:
- Detailed
position and legal deposits for each month on a monthly basis,
not later than 25th day of the next month.
- Balance
sheet and profit and loss account, as certified by independent
auditors and the Authority, on annual basis, for each year, not
later than the end of next Khordad.
- To
provide other information required by Bank Markazi whenever Bank
Markazi determines; such information shall be considered confidential
and shall not be made public, whether specifically or individually.
- To
cooperate with and put the necessary information at the disposal
of Bank Markazi inspectors who shall be dispatched to the Zone
with the written order.
Article
24
Appointments of the Managing Director and the
members of the Board of Directors of the Zone's banks and institutions
has to be approved from the standpoint of their professional capability
and qualifications.
Article
25
Each bank or institution in a Zone is responsible
for, and must compensate, losses and damages sustained by their
customers as a result of their operations.
The
Managing Director and the member of the Board of each bank and institution
are also responsible vis-a-vis their shareholders and customers
for losses and damages suffered by such shareholders and customers
resulting from the violations of these Regulations or their charters
by any of them.
Article
26
The business hours of banks and institutions
shall be determined by the Authority.
Article
27
For the purpose of facilitating the exchange
of cheques and banking instruments, a clearing house shall be established
by the banks and institutions operating in the Zone, whose operating
costs shall be financed by the said banks and institutions.
REGULATION
ON INVESTMENT IN FREE TRADE INDUSTRIAL ZONES
Article
1
In
these regulations, the following terms are used in lieu of the corresponding
phrases:
Mainland:
The Islamic Republic of Iran, excluding the Free Trade and Industrial
Zones
Authority:
The Authority of each Free Trade and Industrial Zone of the Islamic
Republic of Iran.
Zone:
Fach Free Trade and Industrial 'Lone of the Islamic Republic Iran.
Investment: The utilization of capital in
different forms in any economic activity for the purpose of manufacturing
goods and providing services.
Foreign Capital: All the types of capital
mentioned in Article (3) of these Regulations (save Rial
amounts) imported into the Zones by foreign investors.
Foreign
Currency Capital: The capital mentioned in Article (3) of these
Regulations (Save Rial amounts) that is imported into the Zones
from outside the mainland by Iranian national,..
Net
Profits: The excess of realized income earned by an entity over
expenses incurred in a financial I)rriod resulting from profit making
activities, identified and measured in accOrdLutce with generally
accepted accounting principle
Article
2
All
natural and legal persons and institute, both Iranian and foreign,
as Well as international organizations, may either separately or
jointly with the Authority and affiliates thereof or jointly with
each other ingest in the Free Zones in accordance with these Regulations;
their accepted capital shall be subject to these Regulations.
Article
3
For
the purpose of these Regulations, capital shall comprise:
- Rial
amount and tOreien currency amounts convertible in the Zones (each
lone);
- Machinery,
equipment. parts and
- Industrial
property rights including patents, technical know ?how, trademarks
and names;
- Land,
air and sea?going vehicles related to the investment;
- All
or part of transferable net profits generated in the Free Zones
and added to the initial capital
utilized in another authorized activity governed by these Regulations.
Note
In
special cases, raw materials and semi finished parts may, at the
discretion of the Authority, be accepted as a part of foreign capital.
Article
4
Capital
shall be accepted ;in(] made subject to these Regulations under
the following conditions:
- to
be utilized in activities authorized by a Zone;
- to
complete the entire procedure for the grant of the investment
permit mentioned in Article (6) and (7);
- it
does not involve the granting by the Authority to the investor
of a concession or monopoly rights.
Article
5
Foreign
investors may participate in the economic activities of the 'Lone
up to any ratio (of the amount of investment
Article
6
The
investors mentioned in Article (2) of these Regulations that wish
to import their capital in any of the Zones must submit to the 'Lone
Authority their application together with a questionnaire (prepared
by the secretariat and the Zone Authority and placed at the said
investors disposal). Applications received in a Zone shall be examined
by the Zone Authority and an investment permit issued by the Authority
of that Zone.
Note
1
Alterations
to the contents of the questionnaire and the investment permit may
only be made with the knowledge and, where necessary, approval of
the Zone Authority.
Note
2
Exploitation
of the activity subject to the investment license ,hall be upon
tile exploitation license issued by teh zone Authority.
Article
7
Within
the period specified in the investment permit, the holder of an
investment permit must import into the Zone a set percentage of
tile capital in order to commence implementation of the activities
mentioned in tile investment permit.
Article
8
The
importation and registration of capital in Free Zones shall be undertaken
in the following manner:
- The
Capital mentioned in Article 3 (a) of these Regulations shall
be deposited in the bank (or authorized credit institute) account
of the entity in which the investment is to be made and, after
computation of the Rial or foreign currency countervalue, as tile
case may be, at the date of the deposit and in a accordance with
the certificate of the bank (or the authori/ed credit institute),
registered as the capital of the investor in the register of tile
Zone Authority.
- The
capital mentioned in Article 3 (b) and (d) of these Regulations
and as specified in the investment permit and evaluated as per
their ('lh value evidenced by documents and relevant invoices
shall, after review by the lone Authority, be converted; the foreign
exchange value thereof and. concurrently, its Rials equivalent
(at the current rate of exchange posted in the Zone) shall be
registered as of that date as the capital of the investor in the
register of the Zone Authority.
- The
capital mentioned in Article 3 (c) of these Regulations shall,
after its evaluation has been confirmed by the Zone Authority,
be registered as capital in the register of the Authority. Allocation
of the value of the technical know?how to the capital account
shall be concurrent with tile transfer of said technical know?how.
- The
capital mentioned in Article 3 (e) of these Regulations shall,
after confirmation by an auditing firm acceptable to the Zone
Authority, he registered as capital in tire rcgistcr ol~the Zone
Authority in the lirllowing manner:
- After
obtaining the approval of the Authority , with the aim of increasing
the capital to expand investment in the same entity;
- After
obtaining the approval of the Authority, with the aim to expend
investment in activities other than activities for which permission
has been granted.
- After
following the procedure set forth in Article 6 of these Regulations.
if the aim is to invest in activities other than the activity
for which the investment permit was issued.
- Whenever
all or part of imported capital in kind is deemed in the judgment
of the Authority as defective, damaged or useless, or do not conform
with the specifications declared in the application, or whose
declared value exceeds its real value, such portions of its price
are not confirmed by the Authority and shall he carried into the
capital account.
- In
cases where capital goods mentioned in Article 3 (b) and (d) of
these Regulations belonging to foreign investors were previously
used on the Mainland and transferred to the Zones with the authorization
of relevant Mainland authorities, the transfer of such goods shall
be deemed as a transfer of domestic capital and shall be subject
to the provisions of these Regulations.
Article
9
Investors
may insure the capital the), import into the '/.ones. If, pursuant
to the occurrence of a contingency. an insurance company becomes
the subrogate of the investor in accordance with the insurance policy,
such subrogation by virtue of payment ofcompensation to the insures
shall be recognized; however, it shall not be deemed as an assignment
of capital.
Article
10
The
legal rights of foreign investors are guaranteed and protected.
Equitable compensation for damages shall be paid by the Authority
in cases where the capital of foreign investors in nationalized
by law in the public interest and/or said investors property is
taken. In such cases, investors must within a period ol'six months
from date of the expropriation file with the Authority a request
for compensation for damages incurred. The Authority shall evaluate
at current prices the amount of damages incurred and within a period
of three months pay compensation thereof. The Zone Authority may
undertake the aforementioned guarantees through contractual arrangements
with the Central Bank and other banks, credit institutes and insurance
companies.
Note
In
case the investors subject to this article are inclined to have
(lie guarantee mentioned in the Law on Attraction and Protection
of Foreign Investments (approved in 1955), to be fulfilled, their
proposal of investment has to be submitted to the body subject to
the Article (2) of the above??mentioned law. Issuance of guarantee
shall be allowed in compliance with the procedures and formalities
defined in (lie Law.
Article
11
Each
year all entities set up in a Zone pursuant to investment permits
must communicate to the Authority a report on their operations and
their financial accounts; the financial accounts must be confirmed
by an auditing firm acceptable to the Authority.
Article
12
Repatriation
from the Zones of net profits, the initial capital and gains resulting
from economic activities undertaken with foreign capital and foreign
crrency capital as well as the proceeds of the sale or transfer
of these types of capital is permitted.
Upon
the request of such investors, and after verification that the amounts
for which repatriation from a Zone is requested result from utilization
of the investors registered capital in the activity specified in
tile investment permit, and alter ensuring that the circumstances
set forth in the following Note have been taken into account, the
Zone Authority Shall issue the necessary authorizations within one
week from date of rcccipt of the said request.
Note
In
its review, the Zone Authority must take into account whether the
investor may benefit from the tax exemptions mentioned in Article
13 of' the I.aw on tile Administration of the Free Zones and whether
the amounts for Much repatriation is requested are net amounts.
Article
13
Payments
of installments of the principal of loans and related expenses,
as well as payments pursuant to patent, technical know?how, technical
assistance and engineering, trademark, management and similar contracts
are authorized if the authority is intOrmed and if they ;ire made
within the framework of investment projects based on relevant contracts
and financial statements.
Article
14
Investors
may transfer their share of stock to other investors x% ith the
authorization of the lone Authority. In such case, the transferee
shall he deemed in every respect the successor of the original investor.
Article
15
The
transfer of capital from one lone to another lone shall be subject
to the investment regulations of the Zones from which the capital
departs and in which it enters.
Article
16
Disputes
between foreign investors and Iranian parlies shall be settled in
accordance with contracts and written agreements.
|
