One of the most important types of support for knowledge-based companies provided by the Vice-Presidency for science and technology affairs is tax exemptions. Knowledge-based companies and enterprises based in science and technology parks are exempt from taxes based on Article 3 and Article 9 of the “law for support of knowledge-based companies and institutions and commercialization of innovations and inventions” under the topic of Article 105 of the law for direct taxes. According to the Article 3 of the mentioned law and regulations for evaluation of knowledge-based companies, all type-1 and newly developed type-1 manufacturing knowledge-based companies are exempt of direct taxes regarding their knowledge-based products and services since the approval date as long as the knowledge-based confirmation of the companies is valid. Therefore, the names of these companies and titles of their exempted titles are sent to the tax affairs organizations annually and are announced to the tax affairs offices across the nation. It is notable that the exemption only includes the direct taxing of companies’ revenues, and the value added tax and employee tax are not covered by this exemption. In addition, according to Article 9 of this law, the companies and units based in science and technology parks and growth centers will receive tax exemptions for their manufacturing activities in the area of the science and technology park or growth center. The requirement for this exemption is being based in a science and technology park or a growth center. The exemption is applied with approval and coordination of the office and directors of the desired unit with the relevant tax office. It is worth noting that the exchanges between two companies that are based in a science and technology park or growth center and the salaries of their staff are also subject to tax exemption.

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