The purpose of this research is to investigate the effect of dividend reduction on tax avoidance of companies admitted to Tehran Stock Exchange. The statistical data from 2009 to 2016 were selected among the companies listed in Tehran Stock Exchange. Dividend dividends and tax avoidance are among the variables in this research. The researcher selected the statistical sample through a knock-out method from all Tehran Stock Exchange companies 121 companies out of 710 companies as the statistical community . The research method was descriptive-analytical And historical data of research Refer to financial statements and company reports And statistical analysis was performed by Eviews software version 9. The results of the research show that dividend reduction is effective in avoiding company tax payments. Therefore auditors of the Audit Organization of the whole country should pay attention to the share of shares so that they can play an effective role in reducing tax evasion