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Tax Guide

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.

Reference
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.:

  • Textile industry – 13.5%
  • Leather and footwear industry  – 13.5%
  • IT development company – 13.5%
  • Call centres – 13.5%

Other sectors have higher rates, e.g.:

  • Supermarket distribution – 35%
  • Oil sector – 35%
  • Telecom sector – 35%
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.
Interest 35%
Royalties from Intellectual Property
Fund Payments from Managed Investment Trusts
Branch Remittance Tax
Net Operating Losses (Years)
Carry Back
Carry Forward

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:

  1. Is domiciled in Tunisia (and does not have a permanent home elsewhere)
  2. 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)

Rate N/A
Taxable Transactions N/A
Registration N/A
Filing and Payment N/A

Other Taxes Payable

Tax Reference
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

Contact us:

Partner in Tunisia
Youssef Tekari
Partner
Phone: +216 71 77 22 33