Just like other developing countries, in the recent decade, the importance and significance of TAXes in the Iranian economy has attracted the attention of economic researchers and that of policy makers. In the present paper, while I will focus on one of the most important aspects of TAX system, i.e. the whole set of INCENTIVES; effective TAX rates will be calculated and analyzed from a macro-economic standpoint. The most important issues are the efficiency of TAX incentive system and the working of effective rates. To do the task, I have simulated the time series in question and, by using Neo-classic Growth Theory and Jorgenson’s Theory on capital cost and defining the investment path, I have explored the impacts of investment cost and its components and the impacts of some other variables. The findings indicate that TAX exemptions do not work as INCENTIVES and do not have a considerable impact on investment. However, assets depreciation system may be used as an alternative TAX incentive to invoke investment.

In many economies, the export promotion is defined as the main paradigm for the economy and TAX exemptions is one of the prevailing policies in order to protect infant industries and this policy has been employed in the Iranian economy, too. The paper tries to evaluate the success degree of this policy in the Iranian economy. In this regard, the micro-data in various commodity groups based on HS tariff codes during 1997-2017 and panel data regression method has been used. According to the estimated results of the non-oil export model in HS commodity groups, the log real exchange rate has a negative effect. Also, the log price index for export commodities and the log facilities to export as a ratio of total facilities in the banking system have positive effects on export. Moreover, the estimated coefficients of dummy variable related to TAX INCENTIVES policy for each HS commodity groups are positive and significant in HS tariff codes.

Iran’s TAX system includes many forms of TAX INCENTIVES, like as regionally targeted TAX INCENTIVES. According to direct TAX act, article 132, that includes this kind of incentive, declared TAXable income of manufacturing and mining activities in less developed regions are totally (100%) exempt from corporate income TAX for ten years.The aim of this study is to estimate the impact of TAX exemptions of article 132 on employment of Iran’s less developed counties for the period from 1996 to 2008. In the present paper, a two- stage method is used. In the first stage, a proper control group is selected for each treated county by using Synthetic Control Method (SCM) and Genetic algorithm, and the impact of TAX INCENTIVES article 132 on employment in Iran’s less developed regions is estimated via Difference in Difference (DID) Method, in the second stage. Results indicate that TAX exemptions in mentioned Article have no impact on employment of Iran’s less developed counties.

By using theoretical and practical relations of investment and cost of capital, this paper firstly investigates how TAX INCENTIVES stimulate investment; and secondly the benefit of these INCENTIVES against their costs (i.e. government revenue forgone). In fact, this analysis has been done using effective TAX rate- based models and production structure frameworks during 1993-2011 period. Based on results, investment in food and chemical industries (as selected cases) takes significant effect from cost of capital but size of its sensitivity is very trivial. It implies that the benefit of fiscal stimulate is smaller in relation with its cost.

The present study investigates the motivation for paying TAXes in public companies based on the continuity of the CEO. Managers of public corporations may seek to increase profits and TAX avoidance activities to provide a better image of the company and to preserve their personal position and interests. For this purpose, the data of the companies listed in the Tehran Stock Exchange for the period of 2007 to 2017 were extracted and the regression model of the pooled data was used to test the research hypotheses. The results show that state-owned companies have less TAX avoidance than private-owned companies. Also, the second hypothesis of the study predicted that the continuity of CEO has a significant effect on TAX avoidance. But the third hypothesis has not been confirmed by the simultaneous effect of continued selection of managers in state-owned corporations with higher TAXation.

Most developed countries have utilized TAX incentive policies for balancing the growth of their macroeconmies since the beginning of their development process. This study has sought to examine the extent of the influence of this policy on the macroeconomy. TAXation on the income of companies is the most prominent TAX that influences macroeconomic variables through investment costs and investment level. This study introduces svariables like average TAX rate around provinces and Bartik shock as an index for work force demand, and reports an investigation into the role of TAX policies like TAX exemptions and reliefs on the provincial macroeconomic variables such as company growth, per capita wage rate, house rent rate, and unemployment rate as four different models between 1381 to 1395 using the panel data algorithm. Based on the findings of this study, TAX INCENTIVES in the form of reduction in the average TAX rate in provinces positively influenced the company growth and per capita wage rate but it had no significant effect on the house rents and unemployment rate. This implies that the TAX incentive policy has not been able to achieve its goals such as decreasing the unemployment and enhancing the economic conditions in the provinces. The implementation of incentive policies in TAXes have not provided the required motivations for the absorbing the investment and convincing the investors for the reestablishment of their corporates in underdeveloped areas with less TAX rates. It is recommended to allocate the freed resources form reforming the TAXation regulations and decreasing the TAX INCENTIVES to promote more motivation for production and employment in the underprivileged regions.

Fiscal policies can be used as an appropriate tool to achieve regional balanced development goals and programs. In this regard, the government can contribute to the development goals of balanced development of regions through effective and efficient TAX exemptions by increasing investment, transfer of knowledge and technology. In this regard, the purpose of this study is to investigate the effect of TAX exemptions (Article 132 of the Law on Direct TAXes) on the number and value added of industrial units established in deprived and less developed areas in Iranian provinces using method of panel data during 2006-2016. The results indicate that the volume of physical capital, the number of employees, government capital expenditures and bank payment facilities to industrial sector have positive effects on the number and value added of industrial units. Also, the TAX exemptions subject to Article 132 have not effect on the number and value added of industrial units in deprived and less developed areas.