Financial Year – 1 January – 31 December
Currency – Tunisian dinar (TND)
Corporate Tax Summary
Residence –A company is resident in Tunisia if it is incorporated in Tunisia or, if not incorporated in Tunisia, it carries on business in Tunisia and either exercises central management and control there or has its voting power controlled by shareholders that are residents of Tunisia.
Basis of Taxation – Resident companies are taxed on worldwide income. A non-resident company generally pays taxes only on income derived from Tunisian sources. The tax rates and treatment are the same for companies and branches of foreign companies.
|Corporate Income Tax Rate (%)||25%||The corporate tax rate varies by industry. The general rate is 25%, however, certain activities benefit from advantageous rates, e.g.:|
Other sectors have higher rates, e.g.:
|Branch Tax Rate (%)||25%|
|Withholding Tax Rate:|
|Dividends – Franked||10%|
|Dividends – Unfranked||10%|
|Dividends – Conduit Foreign Income||10%||If the dividends have already been subject to a tax in the country of residence of the company which carried out the distribution, this tax is deductible from the 10% payable in Tunisia.|
|Royalties from Intellectual Property|
|Fund Payments from Managed Investment Trusts|
|Branch Remittance Tax|
|Net Operating Losses (Years)|
Individual Tax Summary
Residence – An individual is a resident for tax purposes if he/she ordinarily resides in Tunisia or satisfies one of the following tests:
- Is domiciled in Tunisia (and does not have a permanent home elsewhere)
- Has spent more than half the year in Tunisia
Basis of Taxation – Resident taxpayers are generally taxed on worldwide income, with a tax offset for foreign tax paid on foreign income up to the amount of Tunisian tax payable on that income. Foreign residents are taxable only on Tunisian source income.
Filing Status – Each taxpayer must file a separate return each financial year; joint returns are not permitted.
Personal Income Tax Rates
|Taxable Income||Tax Payable – Residents||Tax Payable – Non Residents|
|Up to EUR 1,666||0%||0%|
|EUR 1,667 to EUR 6,666||19.5%||19.5%|
|EUR 6,667 to EUR 10,000||22.3%|
|EUR 10,001 to EUR 16,666||26.2%||26.2%|
|more than EUR 16,666||35%|
Goods and Services Tax (GST)
|Filing and Payment||N/A|
Other Taxes Payable
|Payroll Tax||Wage tax is generally withheld at source by the employer. Likewise for social contributions.|
The employer bears part of the social contribution, which is equal to 16.5% of the wages distributed
|Stamp Duty||Tunisia imposes stamp duty at rates of up to 10% on the transfer of real property and some other business property. Rates vary depending on the class of business property transferred.|
|Land Tax||With the exception of legal exemptions, an annual “tax on undeveloped land” is due on undeveloped land located in areas under local authority control.|
The tax on undeveloped land is calculated at the rate of 0.3% on the real market value of the land.
Last updated: 02.07.2020