Hadi Paraj, during a specialized session titled "Tax Credits for
First-Production Companies," on the sidelines of the Iran Plast
International Exhibition, highlighted that, in total, over 80 projects, valued
at $85 million, have reached the final contract phase out of 382
first-production requests submitted across the country. Notably, 226 of these
requests fall under the purview of the Ministry of Oil.
Paraj remarked, "Among the challenges of entering first-production
contracts are the multitude of claimants for yet-to-be-manufactured goods,
pricing complexities in first-production valuation, financial and technical
risks, as well as unsuccessful project dumping and regulatory oversight
He further elucidated that the main prerequisites for the development of
native contracts include determining the depth of localization and the level of
project profitability, specifying technical criteria, pricing first-production,
outlining payment phases, and designing testing scenarios.
Paraj concluded by underscoring the significant cost reductions achieved
in the production of these commodities by the Ministry of Oil, with savings
ranging from 30% to 60% compared to foreign counterparts. This achievement
signifies a substantial milestone in supporting national industries and
fostering economic growth.
Ali Darabi, representing the Policy-Making Office of the Office of
Scientific and Technological Affairs of the Presidency, added that the most
significant financial support provided by the Office for first-production,
knowledge-based companies includes the exemption of sales tax for
knowledge-based products (Articles 3 and 9 of the Knowledge-Based Companies
Law) and tax credits for research and development (Section B, Article 11 of the
Innovation in Knowledge-Based Production Law). Darabi further elaborated that,
according to Section B, Article 11 of the Support for First-Production
Companies Law, the equivalent of expenses incurred for research and development
activities is granted as tax credits, which can be offset against future years'
taxes for interested companies and institutions. The executive regulations for
this provision will be promulgated within a maximum of three months from the
date of the enactment of this law, in collaboration with the Ministry of
Economic Affairs and Finance, the Ministry of Science, Research, and
Technology, and the Ministry of Health.
Moreover, Darabi articulated that the criteria for approving research
and development projects in the field of first-production encompass
systematization, a minimum medium-to-high level of technological proficiency in
the country, and technical mastery at the project's conclusion.