|
Council
of Ministers'
Decree
(No.H15891T/5125
Date:Aug.6,1996)
Ministry
of Economic
Affairs and
Finance
The
Council of Ministers in its meeting
held on
23.03.1375 (12 June, 1996)
acting upon
recommendation No.66080021/31215
dated 24.08.1374
( 14 November
1995 ) of the
Ministry of
Economic Affairs
and Finance , in
relation to
investments covered
by the
Law for
the Attraction
and Protection
of Foreign
Investments- enacted in
1334 (1955) - approved the
following :
1.
The import of machinery,
equipments and
raw materials
as part
of the investment contribution
of foreign
investors , whether
in the
form of
equity capital
or shareholder's
loan , is not
subject to
the Council of
Ministers' decrees
relating to
the import
and banking
regulations , and
shall be merely
governed by
the Law for
the Attraction
and Protection
of Foreign
Investments of
1334 ( 1955 )
and its
implementing regulations of
1335 (1956) and
the subsequent
amendments thereto.
The Ministry
of Commerce
, subject to
the approval
of the Organization for Investment ,
Economic and
Technical Assistance
of Iran ( O.I.E.T.A.I.)
based on the
agreement of
the Supervisory
Board for
the Attraction
and Protection
of Foreign
Investments , shall
take measures
for registration
of orders
and issuance
of license
for delivery
of the said machinery
, equipments
and raw
materials from
the Customs.
2.
The export of the products
produced by
joint venture
companies in
the manner prescribed
in the
permits related
to the
admission of
foreign investments
( the
relevant decrees ) ,
to the extent that
the foreign currency earned from
the aforementioned
exports covers
the foreign
currency requirements
of these
companies with
respect to :
-
the import of raw materials
and semi- fabricated parts
related to
their own
products ,
-
other current
foreign currency requirements
including repayment
of the
principal as
well as
payment of
the profit (interest) on the
loans extended
by foreign
investors ,
-
foreign currency
expenses related
to ( transfer of ) technology,
management and technical
services agreements
( according to
the relevant
decrees ) , as well as
-
the required
foreign currency
for the
transfer of
annual transferable dividends of
foreign investors ,
is permitted , and
shall be exempt
from the
present governmental regulations and
/ or any
regulations in
future , restricting
the exports
by way of quantity
and deposition
of a
foreign exchange
undertaking for the
return of
the foreign exchange
derived from
exports. The
exporters are
required ,
prior to the
export of goods , to
define the
sum withdraw able from the
foreign currency revenues
for each
of the
purposes provided
for in
this clause
, and seek the
approval of
the Supervisory Board
for the Attraction
and Protection of Foreign Investments
. The
Ministry of
Commerce is
under obligation
to issue
the export
license only
upon confirmation
of the
O.I.E.T.A.I.
3.
The import of machinery ,
equipments and
raw materials,
and in return
, the
export of
the products
, up to
the approved figures
in projects where the foreign investment
is admitted with
no equity participation
but through
project financing
mechanisms shall
also be
subjected to
the facilities
stipulated in
clauses 1 and
2 above
. Repayment
of the
principal as well as
payment of
the profit (interest) on the
financial facilities related to
projects under
this clause, shall
exclusively be permitted out of the export
(proceeds) of
products of
the same
project .
4.
The foreign currency revenues
derived from
services and
tourism activities
of foreign
investments may
be utilized
for the
purposes stipulated
in clause 2
above pursuant
to the
approval of
the Supervisory
Board for
the Attraction
and Protection
of Foreign
Investments .
5.
The export (of products) in excess
of the specified quantity and utilization of
the foreign
currency revenues
in excess
of the purposes
defined in the Decree, within the framework of the laws and regulations of the
country , is permitted.
6.
All companies and entities falling under this Decree, may keep the
foreign currency
revenues derived
from their
activities up to
the ceiling approved by the O.I.E.T.A.I.
in an escrow account with a
local or foreign bank , and
directly withdraw
therefrom for defined
purposes.
Note : with regard to those companies which are established with
the participation of governmental companies, the opening of account with foreign
banks is dependent upon the approval of the Central Bank of the Islamic Republic
of Iran .
7.
Activities other than those which fall under the priority first of the
Decree No. H11463T/1361 dated 11.02.1374 ( 30 April, 1995) as well as future
substituting decrees, other industrial and mining activities with
foreign participation shall fall
under the priority second and
shall enjoy a
six- year tax
exemption . The yearly
increase of
tax exemption
as a
result of locating
the aforementioned units
in deprived
areas shall
continue to be in force.
Hassan
Habibi
First
Vice President
Decree
: No. H15891T/5125
Date : Aug.6,1996
Council
of Ministers'
Decree
(No.
22021T/45271
Date: 13, Nov. 1999)
Ministry
of Economic
Affairs and
Finance
The
Council of Ministers in its meeting held
on 28.07.1378
(20.10.1999) , by virtue
of principle 138
of the
Constitution of the
Islamic Republic
of Iran , approved
the criteria
for admission
of foreign
investments under the
Law for the
Attraction and
Protection of
Foreign Investments (LAPFI)-
enacted in 1334 ( 1955) -
as follows:
Criteria
for Admission of Foreign
Investments
under
the Law
for the
Attraction and
Protection
of Foreign
Investments
Article(1)
:
Applications
for foreign
investment which have been
approved, through the
Organization for Investment,
Economic and Technical Assistance
of Iran ( OIETAI ) within
the framework
of this
Decree, by
the Supervisory
Board* referred to
Article (2) of
LAPFI, shall be covered
by LAPFI
after ratification by the High
Council for
Investment stated
in Article (7)
of OIETAI’s
Charter.
Note
-
Such approval
requires a positive vote
of majority
of member
ministers of
the High
Council and shall become
effective after being
re-affirmed by the President,
and subsequently promulgated
with due
observance of
Article (19)
of the Cabinet Bill.
Article
(2) :
Foreign
investment projects, in addition
to creating
employment opportunities, are
required to
serve, at
least , one
of the
following purposes:
(1) Promotion of the
Iran’s non-oil
exports;
(2) Completion of
links of
the country’s production
chain;
(3)
Exploration and exploitation of underground
resources as
well as
processing ( industrial - mining complexes);
(4)
Increasing market
competition and
upgrading the
quality of
products and
services as
well as
reducing prices
in Iranian
territory.
Article
(3):
Remittance
of profit and other foreign exchange
transfers related
to foreign
investment approved
by the
Supervisory Board
is solely permissible
out of
the foreign
exchange earnings
or annulment of foreign exchange
commitments related
to the
export of
goods and
services of
the recipient investee
firm in
which the
foreign capital
is employed.
In the event
that the
export of
goods and
services by
the recipient investee firm
is prohibited
by the
Government, the
foreign exchange required
for transfer
purposes shall
be provided out
of a
special credit
made available
to the
OIETAI for
such purposes.
Article
(4):
Foreign
investment shareholding
in companies
to be
registered in
Iran for
the implementation of a
foreign investment
project ,and/or in existing
registered companies in which foreign
investment is made
to enhance capacity
and production, is permissible
in the
following manner. The
proportion of foreign shareholding
shall be
determined in
each of
the following categories upon mutual agreement between
the parties
involved:
a)
In projects aiming
at, inter alia, promoting non-oil exports, completing
the links of production chain,
mining- industrial complexes, increasing market
competition, upgrading
the quality
of goods
and services,
and reducing
prices, up to
80% of
the shares of joint venture
companies may
be presented to
foreign investors.
b)
In projects aiming at
exploration and exploitation
of mines and underground
resources, a maximum of 49%
of the
shares of joint
venture companies
may be
presented to foreign
investors.
Note
1-
Further increase
in the foreign permissible
shareholding in special
projects is possible
upon recommendation
made by the Supervisory Board and
approval of
the Council
of Ministers.
Note
2-
Projects, under LAPFI, financed by foreign
investors through buy-back arrangements , B.O.T., and B.O.O.T.
schemes, and/or
any other
project financing
mechancisms are not
subject to
restrictions related to
foreign permissible
shareholding .
Article(5)
:
Part of foreign
investors’ imported capital
may be covered
under LAPFI
in the form
of financial facilities. The
related installments
of principal
and profit
( financial charges
and costs )
thereto shall be
transferable in
accordance with
Article (3)
of this
Decree.
Hassan Habibi
First
Vice President
Decree
: No. 22021T/45271
Date : Nov.13,1999
|
