a) Common characteristics and facilities

Foreign investors shall be subject to the same treatment as domestic investors.

The import of foreign cash and in kind capital shall only be based on an investment licence and not other permits.

The amount of foreign investment in each case is not subject to any limitation whatsoever.

Foreign capital shall be guaranteed against nationalisation or expropriation, and the foreign investor in such cases shall be entitled to receive compensation.

The transfer of the principal of capital, profits of capital and benefits derived from the exploitation of capital is possible in the form of foreign currency or, as the case may be, in the form of commodities as provided for in the investment licence.

The freedom of exportation of commodities produced by the investment project firm is guaranteed and in case of export prohibition, the produced commodities shall be sold in the country and the revenue can be transferred abroad in the form of foreign currency and through the official monetary network of the country.

b) Distinctive characteristics and facilities

Direct foreign investment:

Investment is authorised in all fields where private sector activity is permitted.

There is no limitation as to the percentage of foreign investment participation.

Investment within the framework of contractual arrangements:

The government guarantees compensation for losses sustained by foreign investment resulting from the prohibition or cessation of financial agreements due to enactment of law or government decisions, up to the ceiling of the due instalments.

In the build-operate-transfer [BOT] and civil partnership schemes, purchase of the commodities and services of the investment project by the government organisation party to the contract is guaranteed within the framework of legal regulations, when the government organisation is the exclusive/sole purchaser or where the government organisation supplies the mentioned goods and services at a subsidised rate.

Article 6

Foreign investors that have previously invested in Iran without the protection of the act [FIPPA], can – by following the procedure for admission – obtain protection under the act for the principal of the investment made. Subsequent to the issuance of the investment licence, the investor shall enjoy all the benefits of the act including the provisions for transfer of profits. Such investments are generally viewed as existing investment and shall be subject to the general provisions of foreign capital admission.

Article 22

All applications resulting in the transfer of capital, profits and proceeds derived from the increase of the value of capital value subject to the act shall be supported by a report of an audit institute member of the Iranian Certified Accountants Society. Such transfers will be possible after withholding all the legal deductions to the extent determined by the mentioned audit institute.

Article 27

The funds permitted to be transferred pursuant to the act, on approval by the board, shall be purchased and transmitted through the banking system by the foreign investor, and the central bank of the Islamic republic [Bank Markazi] shall supply the banking system with the required foreign currencies for this purpose.