Tax

Which taxes does an entrepreneur have to pay? How much?

Corporate Income Tax – 25%

Corporate income tax is applicable to all resident companies on income from any source, whether produced in Tunisia or abroad (“world-wide basis”). Non-resident companies are taxed only on income earned in Tunisia.

Taxable income is based on the net income of the company, branch or partnership for the year as shown in the statement of income, as adjusted in accordance with current tax legislation at a common level of 25%. A reduced level of 10% is for agriculture and exporting companies.

The Tunisian tax legislation has established a certain number of incentives to investment and creation of projects. Various tax incentives are available for totally exporting companies 50% of the exporting activity income is deductible from total taxable income up until 31 December 2011. From 1st January 2014 the exporting activity income is taxable at the rate of 10%.

Tax incentives for SMEs

As part of the promotion of small and medium enterprises, the Finance Act 2011 has provided the management measures to support businesses created from 1 January 2011 provided it is a new investment and the turnover does not exceed 300,000 dinars for service activities and non-commercial professions, and 600,000 dinars to trade events and activities processing and consumption on the premises.

Companies are deductible from taxable income, revenues or profits from operations conducted during the first three years of operation, in the limit:

75% for the first year;
50% for the second year;
25% for the third year.

The benefit of this advantage is subject to the condition that the keeping of accounts in conformity with accounting law firms.

Value Added Tax (VAT) – 18% (standard)

VAT is an indirect tax. All economic activities conducted in Tunisia, including industrial and handicraft activities, liberal or commercial professions, are subject to value-added tax. Exports by definition are consumed abroad and are usually not subject to VAT.

Three different VAT rates apply in Tunisia:

6% : information technology services, hotels and restaurant activities, and equipment
12% : raw materials, craft industry products
18% : operations related to services and goods not subject to another rate.

For more information about VAT in Tunisia, you can visit here.

Social Security Taxes

The social security rates are 9.18% on behalf of the employee and the 16.57% on behalf of the employer and 0.5% for employer's compensation on behalf of the employer.

Local Tax

The tax on the rental value is a municipal tax on buildings. The rate is fixed per local authority, which may be divided into two zones, urban and suburban (where the rate is lower).

Real Estate Tax

The purchase of real estate is subject to 1) A registration duty of 5% on the purchase price increased by VAT; 2) A stamp duty of 15TND per sheet of contract; 3) A real estate property conservation duty of 1% on the purchase price increased by VAT.

Excise Tax

This is a federal tax on specific goods and services either they’re imported or manufactured in Tunisia, levied on a variety of items such as cigarettes, tobacco, alcoholic beverages, cosmetics perfumes, private cars. Excise tax is levied on sale price or customs value for imported goods.

How do I pay for my taxes?

You can file the corporate income tax and VAT with the electronic system "e-tasrih" introduced by the Tunisian tax authority. For more information, you can visit here. Tax return is due on 5 December of the year subsequent to the year of taxation. The tax year ends on 31 December.

Starting or running a business?

Tax