Tax in Tunisia

Slim Gargouri provides an introduction to the Tunisian tax system.

Tunisian Income Tax

For individuals who are Tunisian residents, income tax is levied on their world wide revenue. However, it should be noted that foreign revenue which has been taxed legally in a foreign country is not taxable in Tunisia.

Taxation of Non-Resident Individuals

Non resident individuals are subject to the Tunisian income tax levied on their Tunisian sources revenues.

It should be noted that relief from double taxation is available through tax treaties to which Tunisia is signatory. Tunisia has entered into tax treaties with most Arab countries, European Union countries, the USA, Canada etc.

Tunisian Corporate Tax

Corporate income tax applies to resident companies, and to permanent establishments of non-resident companies.

The standard rate of the Tunisian corporate tax is 30%.

For some activities, the corporate tax rate is 35%.

As before, it should be noted that, relief from double taxation is available through tax treaties to which Tunisia is signatory.

Encouraging Foreign Investment

Tunisia has enacted several laws to encourage foreign investment in the industrial, service, finance and tourism sectors.

Various incentives (exemptions, reduced rates, financial support, investment bonuses, a full tax allowance, etc.) are provided for, by the Investment Incentives code.

That is why foreign investments are increasing in Tunisia.

Tunisia Export incentives

Fully exporting companies are taxable at the rate of 10%, effective 1 January 2011.

Fully exporting companies established before this date benefit from whole exemption of their profits for 10 years. After that, the rate of 10% is applicable.

It has to be noted that these companies don't support any other material tax.

Tunisia Regional development:

Companies incorporated in regional development areas benefit from:

• Full tax exemption on profits for 10 years and a 50% tax base reduction for the next ten years.
• Full tax exemption on reinvested profits.
• Full assumption by the State of Employers' Social Security Contributions during the first 5 years in regional development areas, and partially (from 80% to 20%) during the following 5 years.
• Possibility that the State contributes to infrastructure expenses.
• 15% to 25% investment bonus based on the investment value (with limitations)

The High Commission for Investments is authorised to grant further incentives to investment projects deemed to be of special or significant importance.

Article Added Saturday, 20 June 2009

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