The Tunisian Income tax:
Ecovis KDH Partners Tunisia tax team advice on tax compliance and tax advisory services. We help you in the determination of the most tax efficient way to structure your foreign business, Structure the funding of your overseas business, incorporating local tax laws, Manage an effective tax rate and the timing of your transactions and Provide expatriate tax services.
Income in TD | Tax rate |
0-1,500 | 0% |
1,501 - 5,000 | 15% |
5,001 - 10,000 | 20% |
10,001 - 20,000 | 25% |
20,001 - 50,000 | 30% |
Over 50,000 | 35% |
Non resident individuals are subject to the Tunisian income tax levied on their Tunisian sources revenues.
It has to 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 establishment of non resident companies. The standard rate of the Tunisian corporate tax is 30%. For some activities, the corporate tax rate is 35% (banks, financial institutions). It has to 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.Tunisia has enacted several laws to encourage foreign investment in the industrial, services, finance and tourism sectors. Various incentives are provided (exemptions, reduced rates, financial support, investment bonuses, a full tax allowance etc.) 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 2012. Fully exporting companies established before this date benefit from whole exemption of their profits during 10 years.Then, the rate of 10% is applicable. It has to be noted that these companies doesn't support any other material tax. Ecovis Tunisia helps its clients to benefit from all tax incentives.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 a new period of ten years.
- Full tax exemption on reinvested profits.
- Full assumption by the State of the employer's contribution to the legal regime of social security, 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 authorized to grant further incentives to investments projects deemed to be of special or significant importance.
The Tunisian investment incentives code covers all the activity sectors with the exception of mining, energy, domestic commerce and the financial sector which are governed by specific texts. For industrial and service activities, projects are declared at API’s offices (Sercie provided by Ecovis Tunisia). Nevertheless, certain activities must be authorized by the relevant ministry. The High Commission for investment must approve certain non-totally exporting service activities for Investment when foreign investors hold the majority interest in the company.
Certain common tax advantages foreseen in Articles 7,8 and 9 of the Investment Code may be granted upon a simple request. Financial advantages may be granted by the relative Minister’s decision after the advantage-granting commission’s opinion is received. Additional advantages may be granted after the superior Commission for Investment gives its opinion.