Tunisia: Business Environment
A reduced rate of 7% applies to: the transport of goods; activities carried out by doctors and analytical laboratories; charging equipment for electric motor vehicles; materials and supplies for pharmaceutical products; tourism activities; full-electric vehicles.
The following transactions are subject to a 13% reduced rate:
Additionally, there are specific tax regulations for the sales of buildings constructed for housing purposes:
Exports and related services are zero-rated.
The Finance Law 2023 states the objective of limiting VAT rates to two levels (19% and 7%) and gradually phasing out the 13% rate:
Starting from 2023, the following activities are be subject to a 19% tax rate instead of 13%:
Additionally, medical and cosmetic surgery services are now taxed at a 19% VAT rate instead of 7%.
According to Tunisian tax laws, tax losses are divided into two categories: operating losses and deferred depreciation. Operating losses can be carried forward for a maximum of five years, beginning from the year following the year they were recorded. On the other hand, deferred depreciation can be carried forward indefinitely, starting from the year following the one in which it was recorded. Carrying losses back to previous years is not allowed.
The allowance for bad debt is deductible up to 50% of taxable income (after deducting non-taxable income and adding back non-deductible costs).
The 2024 Finance Law grants newly established enterprises a four-year exemption from corporate income tax (CIT) and personal income tax (PIT) if they submit an investment declaration in 2024 or 2025. This initial-year exemption begins from the date of commencement of activities and concludes on December 31 of the same year. These enterprises must commence operations within two years from obtaining the investment declaration and adhere to Tunisian accounting standards. Companies in Regional Development areas eligible for CIT deductions on profits from investments over five or ten years can enjoy the four-year exemption before the full deduction period of five or ten years. However, certain blacklisted activities are excluded from this PIT/CIT exemption.
Stamp duties are generally due on certain contracts expressly designated and on invoices (TND 1 for invoices). The registration of some operations is compulsory. In these cases, the registration fees are expressly determined by the Registration and Stamp Fees Code. Some transactions are subject to proportional registration fees (5% for property transfer taxes, 3% for the acquisition of social housing from real estate developers for the portion exceeding TND 500,000 - 2.5% in the case of a transfer of business).
A hotel tax is due by entities that work with tourists; provide accommodation, food, and beverages; or organise leisure activities for clients, at a rate of 2% of the gross turnover generated from tourism and related activities. A Tourism Sector Development Fund tax is levied on entities operating in the tourism sector at a rate of 1% of turnover (excluding VAT).
Stamp duty of 100 millimes per receipt issued to customers is due by large commercial areas and multi-department stores that are under the Large Businesses Direction (DGE) or to the Medium-Sized Businesses direction), and operators of a brand or a foreign commercial sign.
The Tunisian social security system is financed by contributions from both employers (16.57%, reduced to 16.07% for wholly exporting companies) and employees (9.18%) based on salaries. Employers are also required to pay a premium for workplace injuries ranging from 0.4% to 4% of earnings. Employers collect social security contributions from each employee and pay on their behalf. Contributions to the CSS were increased with the Finance Law 2023, as follows:
4% with a minimum of TND 500 for companies subject to a 35% corporate tax rate (banks, insurance companies, telecommunications operators, companies operating in the oil sector, hypermarkets, etc.).
3% with a minimum of TND 400 for companies subject to the normal corporate tax rate of 15% and a 20% tax rate for companies going public through an initial public offering (IPO).
3% with a minimum of TND 200 for companies subject to a reduced corporate tax rate of 10%. This applies specifically to companies in the agriculture or fishing sectors.
Companies are also subject to vocational training tax (2% of the gross amount of salaries; 1% for manufacturing industrial companies).
Employers established in Tunisia, regardless of being liable or not for income tax, are subject to a social lodging tax, calculated at 1% of the gross amount of salaries paid to its employees, including benefits in kind.
Tunisia's parliament has approved the Finance Law for 2024. The main measures in the law include an increase in the tax on the turnover of tourist restaurants, second and third category cafes, and tea halls from 1% to 3%, along with extending this tax to tourist accommodations, bars, and manufacturers of soft drinks and alcoholic beverages. Additionally, there is an increase in the tax on the turnover of nightclubs and clubs not affiliated with a tourist institution from 3% to 5%. The law also expands the scope of the tax on tourist accommodation and raises the nightly rate for foreigners from TND 1 to TND 4 for 2-star accommodations, from TND 2 to TND 8 for 3-star accommodations, and from TND 3 to TND 12 for 4-star and 5-star accommodations, with the maximum tax now calculated on 15 consecutive nights instead of 7. Furthermore, the law introduces a temporary 4% contribution on the taxable profits of banks, financial institutions, and insurance and reinsurance companies for 2024 and 2025, with a minimum annual contribution of TND 10,000.
Tunisia | Middle East & North Africa | United States | Germany | |
Number of Payments of Taxes per Year | 8.0 | 20.8 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 144.0 | 204.0 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 60.7 | 32.1 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Income tax (IR) | Progressive rate from 0 to 35% |
TND 0 - 5,000 | 0% (solidarity contribution not due from whose individuals realising exclusively salaries, wages, pensions, and life annuities whose annual net income does not exceed TND 5,000) |
TND 5,001 - 20,000 | 26% + 0.5% solidarity contribution |
TND 20,001 - 30,000 | 28% + 0.5% solidarity contribution |
TND 30,001 - 50,000 | 32% + 0.5% solidarity contribution |
Over TND 50,000 | 35% + 0.5% solidarity contribution |
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Latest Update: November 2024