The Tunisian tax system went through significant reforms. Tax revenues derive from direct and indirect taxes, registration duties and customs duties. Since 1996 a tariff dismantling program has been launched to establish a total free-trade zone with the European Union as of 2008.
Personal tax
Under the provisions of international conventions and special accords, a tax on all yearly income earnings is put on any natural person residing in Tunisia. `Residents' are considered to be:
- Natural persons having their usual residence in Tunisia
- Natural persons who continuously or discontinuously reside in Tunisia for at least 183 days per calendar year if they do not own a principal residence.
Taxable earnings
- Real estate earnings;
- Capital gains and transferable securities;
- Life annuities;
- Earnings derived from any paid work;
- Earnings derived from business operations in Tunisia;
- Any other earnings made in Tunisia.
Fiscal Year
From January 1st every year, income tax is charged on the previous year earnings. Any resident or non resident natural person is charged on earnings made in Tunisia.
Tax scale
Applied to net annual earnings:
TND %
Up to 1,500 0
1,501-5,000 15
5,001-10,000 20
10,001-20,000 25
20,001-50,000 30
More than 50,000 35
Dividends
Collected dividends are income tax-exempted.
Foreign staff
Foreign staff recruited by fully-exporting companies and offshore institutions may choose a flat-rate tax of 20% on their gross salary.
Corporate Tax
Registration dues
General system
Articles of incorporation
Acts of increase of capital fixed duty of TND 100 per act
Other acts TND 5 per page
For public limited companies and in addition to the fixed duty, a subscription and equity depositduty is required:
Up to TND 100,000 TND 25
From TND 100,001 to TND 500,000 TND 50
More than TND 500,000 TND 100
Special system
Fully-exporting companies are exempted from registration dues.
Tax rates
- 35% as a general rule for companies;
- 10% for agriculture and fishing companies.
Fiscal incentives
Full tax-exemption on profits for the first 10 years for :
- exports-derived revenues;
- agricultural projects;
- regional development projects.
50% tax base reduction for :
- export revenues from the 11th year and for an unlimited period;
- regional development projects for 10 additional years.
10% tax rate drop for :
- education, teaching, vocational training projects;
- environment protection projects.
Tax relief
Tax cuts are granted for profits and reinvested earnings from 35% (general rule) to 100% providing a minimum tax of 20% on corporate general profits and 60% on personal income tax.
Dividends
Dividends earned by companies are not taxable in Tunisia. They are freely transferable as long as they come from businesses provided for by the investment incentives code.
Value-added tax
The value-added tax, VAT, is applied to all industrial, handicraft and services businesses except foragriculture.VAT paid on purchases is deductible from the VAT collected on sales turnover.
6%
Sensitive products of social, medical and educational nature
10%
Capital goods having no locally-made counterparts and some services industries such as transport and tourism, low voltage power for domestic use and, medium and low voltage power for operating water pumping designed for agriculture irrigation, training services andInternet subscriptions.
18%
Capital goods with locally-made counterparts, raw materials, semi-finished goods and non-food consumer goods
29%
Luxury products
Free zone tax system
Due to their business in Tunisia, companies established in free zones are only subject to the following taxes, duties, rights and fees:
-Duties and taxes related to passenger cars;
-Single countervailing duty on land transport;
-Contributions and shares for the social security legal scheme;
-Corporate tax from the 11th year of operation, to date from the first effective export sale after a 50% deduction for exports-derived profits.
Investments made by companies set-up in free zones give right to a deduction for income or profits invested in the initial corporate capital subscription or in its increase, to a deduction of the net taxable income and profits for natural persons or companies.
