Inheritance tax
Inheritance tax is one of the types of property tax. This tax is levied on inherited property. The imposition of this type of tax is one of the governments’ mechanisms to adjust wealth. In other words, it can be said that the use of this type of tax is more applicable in societies where there is a huge class difference.
In 1316, the first inheritance tax laws were formed. These rules changed over time. In such a way that some things were added to it. But finally, in 2015, fundamental changes were made in the inheritance tax law. The property tax calculation of those who died before 2014 should be according to the old laws. But if the date of death is after 2015, the tax calculation should be done according to the new laws.
Inheritance tax
As we said in the previous section, if the time of the deceased’s death is before 1995, the inheritance tax is calculated and collected according to the old law. In the new tax law, various types of assets, such as real estate, gold, cars, etc., are subject to a specific tax rate. While in the case of those who died before 1995, this distinction cannot be made. That is, the inheritance tax rate was the same for the total property and estate of the deceased. Regarding the new law, consider the following two points:
This tax should be paid to the country’s tax affairs organization.
In addition to the in-person method, the inheritance tax declaration can also be completed in person and through the Internet portal of the Tax Administration. Then he paid the tax amount.
Persons subject to inheritance tax
Who is subject to inheritance tax? In response to this important question, let us say that the rate of this tax varies according to various factors such as the time of death, the ratio of the heirs to the deceased and the type of assets of the deceased. In general, according to the civil law, the relationship between the heirs and the deceased may be subject to one of the following classes:
First class: including father, mother, wife, children and their children
The second class: includes ancestors, brothers, sisters and their children
The third class: including uncles, aunts, aunts and their children
The rate of this tax for the heirs of the third class is four times that of the heirs of the first class and for the second class it is twice that of the heirs of the first class. The heirs of the first and second class are not subject to paying this tax in relation to the property and assets of the martyrs of the Islamic Revolution
Documents required for inheritance tax
As in other judicial and administrative cases, it is necessary to pay inheritance tax in stages. In this section, we list the documents that are required for the procedures and payment of this tax. In other words, the heirs of the deceased are required to submit a list of his property and assets to the country’s tax affairs organization within a period of 1 year from the date of his death. The following documents are required to file a tax file:
Certified copy or image of documents related to debts and claims of the deceased
Copy or certified image of all documents that prove the deceased’s ownership rights to property and financial rights
A certified copy or image of the deceased’s last will, if available
Copy or image of death certificate from relevant authorities
The heirs of the deceased or their legal representative must, in order to deduct the expenses of the deceased from the deceased’s property, within one year from the date of death, a statement containing all the items of the deceased’s estate along with the determination of the value on the day of death and specifying the claims and debts along with Submit the following documents to the Tax Administration:
Certified copy or image of documents related to debts and claims of the deceased
Copy or certified image of all documents that prove the deceased’s ownership rights to property and financial rights
A certified copy or image of the deceased’s last will, if available
Copy or image of death certificate from relevant authorities
Property exempt from inheritance tax
In this section, as a final word on inheritance tax, we will review a list of properties that are not subject to this tax. Thank you for your cooperation. These properties include:
End of service benefits and retirement and duty funds
Claims related to redemption of service, severance compensation and social insurance
Funds paid by insurance institutions or the employer
Types of life insurance
Death and dowry damages
Furniture of the residence of the deceased
Burial expenses
Debts of the deceased
According to Article 25 of the Inheritance Tax Law, the first and second class heirs of the martyrs of the Islamic Revolution will not be subject to this tax.
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