Reflections on the Legal Aspects of Taxation on Transfer of Property in Iran

Although the property transfer tax has been studied from an economic-financial point of view, its legal aspects need further consideration. The Iranian Tax Code has categorized property transfer tax as a kind of income tax. However, a transfer tax could be considered a kind of lump-sum tax which can have positive effects on the tax assessment procedure. Verifying the transfer of property title is subject to its notarization and official registration. But in many cases there is a legal possibility of taxing transfers of property done through non-notarized conveyance deeds, which of course depends on the fulfillment of certain conditions. Also, the transfer of property can take place in various legal forms, including sale, rent on condition of ownership, settlement (solh) against consideration, gift (heba) against consideration, exchange, etc. the taxation of which is done under the law valid at the time of transfer. The method used in this research is descriptive-analytical.