National regulation and international agreements

Consumption taxes

Nature of the tax

Value added tax (TVA)

Tax rate

18%

Reduced tax rate

Reduced rate of 10% applicable to companies whose activity is agricultural or in crafts, buying groups, service cooperatives set up between producers, consumer cooperatives.
Reduced rate of 6% for operations on goods and services. Consult the list of operations concerning goods and services subject to VAT at 6% ;

Reduced rate of 12% for operations on goods, activities and services. Consult the list of operations concerning products, activities and services subject to VAT at 12%.

Corporate taxes

Tax rate

Common law rate

:

30%

Tax rate for foreign companies

Foreign companies are taxed on the profit they make in Tunisia.

Capital gains taxation

Foreigners may hold, without prior authorization, up to 100% of the capital of a company. However, certain service activities (banks, insurances, investment companies...) other than those totally devoted to exports are subject to approval when foreign participation exceeds 50% of the capital. Tunisia is committed to lifting this restriction in the framework of the Structural Ajustment Plan IV in 2006-2007. In addition, for a foreigner to exercise a commercial activity a trader's card is required; this is issued by the Ministry of Trade especially for retail selling and catering. Foreigners can, however, set up International Trade Companies (SCI) whose objective is import, export, international trading and brokerage, on condition that the International Trade Companies make at least 70% of their annual turnover in export. Some independent professions, like those of lawyers, chartered accountants or architects are reserved for Tunisian nationals. Carrying out the activities of commercial agent, broker, dealer or sales representative is prohibited for natural persons or legal entities who are not Tunisian, unless they have the authorization of the Ministry of Trade.

Main allowable deductions and tax credit

Expenses are deductible for depreciation or amortization, reserves, rents for premises and equipment, wages, etc. There are tax credits for apprenticeships especially.

Other corporate taxes

Professional tax.

Individual taxes

Tax rate

Income tax (IR)

:

Progressive rate from 0 to 35%

Allowable deductions and tax credit

Exemptions for:
- capital gains on transfers of company shares which are not part of professional assets;
- dividends and assimilated revenue;
- remuneration paid to foreign diplomatic and consular agents if there is a reciprocal agreement;
- interest on deposits or stocks in foreign currency or convertible dinars;
- interest on house purchase savings accounts;
- interest on special savings accounts or debentures, within a certain limit;
- interest on savings accounts for studies;
- capital gains from employees taking up an option to subscribe for capital in IT services, IT engineering and related services companies.

Special expatriate tax regime

No

Double taxation treaties

Countries with whom a double taxation treaty have been signed

To know which countries Tunisia has signed double taxation treaties with, consult the Ministry of Foreign Affairs website.

Whithholding taxes

Bilateral agreement

Sources of fiscal information

Tax Authorities

The fiscal administration

Other domestic resources

Fiscal documentation

Official Journal of the Tunisian Republic