Mahdi Mohammadi, spokesperson for the National Tax Administration, announced the issuance of a new mechanism for the refund of overpaid tax for wage earners. This action is designed to assist individuals who have paid more than the legal limit due to interpretational disputes or incorrect calculations.
Details of the Tax Refund Mechanism
Mohammadi explained that individuals who have paid more tax than their welfare and incentive benefits due to incorrect interpretations by the National Tax Administration can request a refund of these amounts by submitting a written request to their local tax office. He added: "In cases where employers have deducted tax based on incorrect interpretations, wage earners may have paid more tax than they should have."
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How to Submit a Request and Required Documents
According to Mohammadi, to facilitate matters for wage earners, there is no need to visit the local tax office where they work, and individuals can submit their written requests to the nearest tax office to their residence. The required documents for the request include pay slips and information related to the tax deducted in the relevant months. After reviewing the documents, if overpayment is confirmed, the refundable amount will be calculated and paid to the taxpayer.
Mohammadi also noted that if an individual has tax debts from another job, this debt will be deducted from the refundable amount, and the remainder will be paid to them. He pointed out that this process does not include all wage earners, and some may not be eligible for this scheme.
Tax Exemption Ceiling and Tax Justice
The spokesperson for the National Tax Administration further referred to the ceiling for income tax exemption and stated: "This year, the monthly exemption ceiling is 40 million tomans." Individuals whose income is below this ceiling are essentially exempt from income tax. Mohammadi also mentioned the difference between Iran's tax system and that of some countries, saying: "In some countries, the tax system is designed based on the total income of individuals, which can help achieve tax justice."
Mohammadi emphasized that this directive only pertains to the refund of overpaid tax for wage earners and does not include other types of tax. If the number of applicants for tax refunds increases, the National Tax Administration must explore new solutions to expedite the processing of requests.
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