Taxation in Tunisia
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Corporate tax rates:
A Rate at 10%
The finance law provides for a rate of 10% for the following activities :
- Companies carrying out a craft, agricultural, fishing or fishing boat outfitting activity.
- The purchasing centers of retail companies organized in the form of service cooperatives governed by the general statute of cooperation.
- Service cooperatives formed between producers for the wholesale of their production.
- Consumer cooperatives governed by the general statute of cooperation.
- Profits made within the framework of industrial or commercial projects benefiting from the youth employment program or the national fund for the promotion of crafts and small trades.
- Operations carried out in regional development zones after the expiry of the exemption period.
- Activities carried out for the fight against pollution.
A Rate at 15%
The 2021 finance law provides for a rate of 15% for all other activities.However, dividends are subject to withholding tax in excess of 10%.
A Rate at 35%
A rate of 35% for the activities already indicated in article 49 of the IRPP Code and IS:
- Credit institutions.
- Financial and banking organizations working primarily with non-residents for their operations with residents.
- Investment companies provided for by law n ° 88-92 of August 2, 1988.
- Insurance and reinsurance companies.
- Debt collection companies.
- Telecommunications network operators.
- Service companies in the hydrocarbons sector.
- Companies operating in the sector of production and transport of hydrocarbons and subject to a tax regime within the framework of specific agreements and companies transporting petroleum products by pipeline.
- Companies engaged in the petroleum refining and wholesale petroleum products sector.
- Supermarkets (from 2020).
- Vehicle dealers from January 1, 2019.
- Companies representing foreign brands under franchise contracts and whose integration rate is less than 30% such as major distribution brands as provided for by Law No. 59 of August 2, 2009 and this from January 1, 2019.
Value Added Tax (VAT):
- General rate: 19% since January 1, 2018.
- Reduced rates: 13% Fees, services, etc.
- Reduced rates: 6% Bank interest.
- Employer: Total of 16.57%.
- Employee: 9.18%.
- Work accident: From 0.5% to 4% depending on activity risk.
Withholding taxes:
Dividends: 7% (if the paying company is a listed company within the WAEMU) / 10% (non-residents); Interest: 10% (paid to banks) / Rent and Royalties: 15% / Fees: 5% or 15% (for flat rates).
CNSS social contributions:
Totally Exporting Plan
Definition:
The fully exporting companies are those:
- Whose production is entirely intended for export.
- Who provide services abroad or in Tunisia with a view to their use abroad.
- Who work exclusively with the companies mentioned or in free zones or with non-resident financial institutions.
- Fully exporting companies are subject to the free zone regime.
Advantages:
- 15% income tax.
- No VAT for payments received from abroad and purchases in Tunisia.
- 10% tax on dividends not reinvested.
- Between 0% and 16.57% employer social security rate for employees.
- Freedom to import, free of all duties and taxes, the goods necessary for production.
- Possibility of selling on the local market up to 30% of turnover.
- Possibility of recruiting up to 4 management and supervisory staff of foreign nationality.
Encouragement for the creation of service or industrial companies "Law No. 71 -2016 of September 30, 2016":
The deduction a share of their profits or income from the operation of the first four years of activity under the same conditions, set as follows:
- 100% for the first year.
- 75% for the second year.
- 50% for the third year.
- 25% for the fourth year.
An additional deduction at the rate of 30% for depreciation of machinery, equipment and equipment intended for operation, with the exception of passenger cars other than those constituting the main object of the operation, acquired or manufactured in the context of extension operations, the base of income tax or corporate tax due for the first year from the date of acquisition, manufacture or start of use.
Offshore Business Regime
Definition:
Fully exporting companies are considered non-resident offshore when at least 66% of the capital is held by non-Tunisian or foreign residents by importing convertible currencies.
A company is then said to be offshore when it has established its head office in a country in which it does not carry on business and whose responsible managers are not domiciled there.
Summary The Main Advantages:
- Double taxation agreement between European and Maghreb countries and Tunisia.
- No VAT for payments received from abroad and purchases in Tunisia.
- 10% tax on dividends not reinvested.
- 15% income tax.
- Only one person necessary (even foreigner) to constitute the company.
- Banking secrecy is legally respected.
- Between 0% and 16.57% employer social security rate for employees.
- No social charges for the non-salaried manager.
- A salary cost significantly lower than in Europe (minimum wage in Tunisia = 140 €).
- A minimum capital of 300 euros to constitute a company (the capital is not blocked).
- Dividend transfer guarantee.
- Register your company in 72 hours.
Financial Benefits:
- Possibility of opening bank accounts in foreign currency or convertible dinars.
- Remote bank account management services.
- No limits on transactions abroad.
- Several withdrawal methods are available (international card, Swift transfer, etc.).
Encouragement for the creation of service or industrial companies "Law No. 71 -2016 of September 30, 2016":
The deduction a share of their profits or income from the operation of the first four years of activity under the same conditions, set as follows:
- 100% for the first year.
- 75% for the second years.
- 50% for the third year.
- 25% for the fourth year.
An additional deduction at the rate of 30% for depreciation of machinery, equipment and equipment intended for operation, with the exception of passenger cars other than those constituting the main object of the operation, acquired or manufactured in the context of extension operations, the base of income tax or corporate tax due for the first year from the date of acquisition, manufacture or start of use.
Partly Exporting Scheme
Definition:
Companies which have the same activities as fully exporters but which generate less than 80% of their turnover from exports are considered as partially exporting.
Advantages:
- 15% income tax.
- Between 0% and 16.57% employer social security rate for employees.
- Relaxation of temporary admission or industrial warehouse regimes in favor of goods and products imported and intended to be processed with a view to their re-export.
- Reimbursement of customs duties and taxes on raw materials and semi-finished products intended to be processed for re-export.
- Reimbursement of customs duties and taxes of equivalent effect paid on imported equipment not manufactured locally for exported products.
Encouragement for the creation of service or industrial companies "Law No. 71 -2016 of September 30, 2016":
The deduction a share of their profits or income from the operation of the first four years of activity under the same conditions, set as follows:
- > 100% for the first year.
- 75% for the second year.
- 50% for the third year.
- 25% for the fourth year.
An additional deduction at the rate of 30% for depreciation of machinery, equipment and equipment intended for operation, with the exception of passenger cars other than those constituting the main object of the operation, acquired or manufactured in the context of extension operations, the base of income tax or corporate tax due for the first year from the date of acquisition, manufacture or start of use.