The issuance and transfer of checks to the bearer will be prohibited from 11 December this year under the new Cheque Act.

According to the amendment to the cheque Act, the issuance and drawing a cheque to the bearer, drawing and transfer a cheque in just physical form, issuance checkbooks for the persons with bounced cheques, bankrupts and persons in failing circumstances and not able to pay the amounts of cheques is prohibited.

The central bank in the present year must provide the necessary infrastructure for the recipient of the cheque to make it possible to inquire about the latest status of the check drawer. Also, information such as the validity limit of the drawer, the history of the bounced checks in the last three years, and the number of unsettled obligations should be provided.

Postponement of the annual and extraordinary general meetings

In the first stage, the proposal of the Iranian Society of Certified Public Accountants to extend the three-month postponement of the general meetings of stock exchange companies has been approved due to the Corona Virus situation.

Given that there is no explicit provision in Iran’s Commercial Code regarding the postponement of meetings, the government has enacted this approval.

Consultations are also being held on the meetings of other public and private sector companies, and its information will be provided as soon as the relevant documents are received.

Good News for Manufacturing Units

One of the vice presidents in the Ministry of Industry, Mine and Trade, referring to the recently approved regulation of the Monetary and Credit Council on the determination of the bank debt of the production units.

This approval shows, all production units licensed by the Ministry of Agriculture and the Ministry of Mine and Trade, by the end of September, may Settle on 7.5% of their debt to the banking system. With a 4-month braking period and within five years of installment of debts, they are permitted to settle their debt and benefit from banking services and facilities.

Permission for Importing Vehicles

Following the additional clause 7 of the bill of the general budget of Iran for 1399, imports of light and heavy vehicles (with the priority of hybrid cars), mining and road construction machinery with foreign currency are permitted under the laws and regulations.

Reviews from the last two years show that 680 import companies were operating, which with the import ban of cars now remaining nine-car importers, are working, which operate at their minimum capacity.

Legal Entities are in need to obtain a license for providing legal services

By the verdict of the General Board of the Administrative Justice Court of Iran, legal entities are required to obtain a license from the Bar Association or the Judicial Advisory Center for Legal Affairs from now on if the wish to engage in providing legal services.

According to the former circular of director-general of Company Registration Office, there was no need for legal entities to obtain a license from mentioned institution. This circular was misused for the registration of legal entities without the presence of an attorney or a legal counsel paves the way for the involvement of non-specialized persons and will bring harm to the public.

The legal basis for this verdict is to protect people’s rights and to exercise their rights to be consulted by persons who are specialized in this matter.

tax from unoccupied houses and apartments

According to the current tax regulation by the government of Iran (Direct Tax Act) Residential units located in cities -which are identified as “Unoccupied” based on the information derived from the National Database of Real Estates and Housing of the Direct Act- shall be subject to the rental income tax.

Recently the government has taken steps for the activation of the National Database and this move shows that the government is eager to receive this kind of tax from unoccupied houses and apartments.Calculation of such tax is based on following formula:

– For the second year: an amount equivalent to one-half of the due tax of the Properties Schedule;

– For the third year: an amount equal to the due tax of the Properties Schedule; and

– For the fourth year onward: an amount equivalent to 1.5 times the due tax of the Properties Schedule.

The Iranian government is planning on launching this National Database by the end of the current Iranian calendar year (March 19, 2020). It is estimated that there are more than 2.6 million empty homes, a figure which is three times more than the global average.