Tunisia Tax 2021
Last partial update February 2020Tunisia Income tax 2020
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 TND | Tax rate |
|---|---|
| 0-5,000 | 0% |
| 5,001 – 20,000 | 26% |
| 20,001-30,000 | 28% |
| 30,001 - 50,000 | 32% |
| 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.
Tax Credits and Deductions
Individuals in Tunisia are entitled to the following:- First TND 5,000 are tax exempt.
- Interest income from deposits in foreign currency.
- Retirement payments up to a limit.
- Life insurance premium up to TND 10,000.
- Payments to higher education up to TND 1,000 per child.
- Payments to independent children and parents up to a limit.
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 in 2020 is 25%.Certain small and medium size companies pay 20%.
For some activities,e.g. banking and insurance, 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 5 or 10 years depending on the development zone.
- 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)
Tax Withholding
Tax is deducted at source from the following payments to non residents:- Dividend-10%.
- Interest- 10%/20%.
- Royalties- 15%/25%.
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(Previous article by Slim GARGOURI, [email protected])
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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