Tunisia Income Taxes and Tax Laws

Febuary 2009

Tunisia Income tax

(Article by Slim GARGOURI, gargouri_slim@yahoo.fr)

The Tunisian Income tax:
Resident individual supports the Tunisian income tax levied on their world wide revenue.
However, it has to be noted that foreign revenue which has been taxed legally in a foreign country is not taxable in Tunisia.
The marginal tax rates are:

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%.
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 2011.
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.

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.

Tunisia Taxes | Tunisia V.A.T. and Other Taxes | Tunisia Accountants, CPA

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