Estimate Template for Iran

Essential elements for an estimate template in Iran include specific identification numbers, detailed service breakdowns, and culturally appropriate communication. Your template must prominently feature your company's "Economic Code" (کد اقتصادی) and "National ID" (شناسه ملی), which are mandatory for all official business transactions and tax compliance. For foreign entities, a "comprehensive national code" or "FIDA Code" serves a similar identification purpose. Similarly, always request the client's corresponding identification numbers. Clearly itemize services or products, quantities, unit prices, and total costs to prevent ambiguity. Culturally, using formal and polite language is appreciated. Consider including a dedicated space for a company stamp and signature, as physical documentation often holds significant weight in Iranian business practices. Always specify the estimate's validity period and outline clear payment terms.

Tailoring estimate templates to specific industries in Iran, such as construction or design, requires incorporating relevant custom fields and flexible pricing structures. For construction projects, include detailed line items for material costs, labor, equipment rental, and permits. Crucially, factor in "Retainage" (سپرده حسن انجام کار) — typically 5-10% of each payment held until project completion and final inspection — which is a standard practice in the industry. For design or consulting services, focus on hourly rates, project phases, specific deliverables, and clearly defined revision policies. Ensure the template supports various pricing models, from fixed-price contracts to time-and-material arrangements. The ability to attach detailed scope-of-work documents or technical specifications is highly beneficial for clarity and avoiding disputes.

Adhering to Iran's tax regulations is critical for estimates, particularly regarding Value Added Tax (VAT) and the use of Iranian Rial. The standard Value Added Tax (VAT) rate in Iran is currently 10% for most goods and services. Your estimate must clearly state whether prices are VAT-inclusive or exclusive and display the VAT amount as a separate line item. Be aware that a 3% withholding tax may apply to payments made to service providers, which clients might deduct from the total. Clarify this in your payment terms. All official estimates and subsequent invoices must be denominated in Iranian Rial (IRR). If you initially quote in a foreign currency, ensure the template includes a clear mechanism for conversion to IRR at the time of invoicing, reflecting the official exchange rate. Corporate income tax for foreign legal entities is generally 25%.