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Pestel Analysis of Iran

In: Business and Management

Submitted By mojdeh220
Words 1487
Pages 6
PESTEL ANALYSIS FOR IRAN
Despite political and economic ups and downs and uncertainties IRAN remains one of the Middle East top countries when it comes to the growth potential. With largest young population IRAN is considered one of the best export markets in the region.
POLITICAL:
Unique factor is that it is religious and Islamic.
The political system of Islamic republic is based on 1979 constitution. Accordingly it is duty of Islamic government to furnish all citizens with equal and appropriate opportunities.
The white revolution which is a step taken with a view to strengthening the foundation of the despotic regime and to maintain the economic links.
The tax environment for foreign businesses is highly risky.
The corporate tax rate has been lowered to a flat 25% from the previous maximum of about 60.
The fiscal year starts on March 21 and ends on March 20 of other year.
TYPES OF TAX
1 Income tax
2 Islamic taxes
3 Real estate taxes
4 Capital gain tax
5 Indirect taxes
ECONOMICAL FACTORS:
Inflation rate for IRAN is 13.50% for year 2010 while in 2009 it was 25.60%.
It is transition economy with large public sector and estimated 50% of economy centrally planned. A unique feature is the large size of religious foundations whose combined budget makes up more than 30% of central government.
Unemployment rate is 11.80%. According to official estimates some 3.5 million working age Iranians are currently unemployed. The jobless rate is high among women and youth of Islamic republic.
GDP- real growth rate is 1.50%. GDP per capita is $ 4732.
It is 18th largest economy purchasing power parity.
Iran's non-oil exports, excluding gas condensates to the Gulf Cooperation Council [GCC] were valued at $2.281 billion during the first 9 months of the current Iranian calendar year (March-December, 2010), showing 25 percent over the same period last year.
The…...

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