3 – Chapter3: TAX SYSTEM

Infrastructure works are exempt from all taxes and duties.

Companies based in the Economic Activities Parks are subject, in respect of their activities in Tunisia, to the payment of the following taxes, duties, fees and charges :

• 1. The duties and taxes related to passenger cars,
• 2. The compensatory single duty on land transport,
• 3. Contributions and shares of the social security legal regime,
• 4. The tax on personal income following the deduction of the two thirds of revenues from exports subject to the provisions of Article 12 bis of Law N°89-114 of 30th December 1989 promulgating the Code of Taxes on personal income and taxes on companies and this for the revenues realized from 1st January 2014;
• 5. The corporate tax of a rate of 15% of profits deriving from exports subject to the provisions of Article 21 of Law 92-81 of August 3, 1992 as amended and supplemented by subsequent texts;
• 6. The levy on industrial, commercial or professional establishments :
  • TLC: 0.1% Export turnover.
  • TCL: 0.2% Local turnover.

Without prejudice to the provisions of Articles 12 and 12 bis of Law N° 89-114 of 30th December 1989, promulgating the Tax Code on personal income and corporate tax, investment realized by companies based in the Economic Activities Parks are entitled to the deduction of revenues or profits invested in the subscription to the initial capital of the company or to its increase, revenues or net profits subject to personal income tax or corporate tax.

The benefit from this advantage is subordinated:

• To Keeping, by individuals engaged in commercial or non-commercial activities as defined by the Tax Code on personal income tax and corporate tax, statutory accounts pursuant to Articles 8, 9 and 10 of the Commercial Code;
• To the newly issued stocks and shares;
• To the non-reduction of the subscribed capital for five years starting from 1st January of the year that follows the year during which the release of the subscribed capital occurred, except for the case of reduction under the loss absorption;
• To the presentation of a certificate of the subscribed capital release or an equivalent document by the beneficiaries of abatement on personal income tax or corporate tax;
• The non-transfer of shares and stocks giving rise to the deduction benefit before the end of the two years following the year of the subscribed capital release;
• The non-stipulation in the agreements signed between companies and the underwriters of guarantees outside the project or the compensation that are not related to the results of the project object of the subscription operation.
• to the Registration of profits or of income reinvested in a special account in an undeliverable balance sheet liabilities except in case of transfer of shares or shares giving rise to a deduction benefit, and this is for companies and individuals exercising a commercial activity or a non-commercial profession as defined by the Tax Code on personal income tax and corporate taxes.Companies that allot all or part of their profits for investment operations can also benefit from the aforementioned abatement, provided that:
• Reinvested benefits must be registered in a « special reserve account of investment » in balance sheet liabilities before the deadline expiry of the submission of the final declaration of the year’s profit during which the deduction occurred and incorporated into the capital of the company at the latest by the end of the year of the establishment of the reserve,- Reinvested benefits must be registered in a « special reserve account of investment » in balance sheet liabilities before the deadline expiry of the submission of the final declaration of the year’s profit during which the deduction occurred and incorporated into the capital of the company at the latest by the end of the year of the establishment of the reserve,
• The tax declaration is accompanied by the corporate investment program to be carried out and the commitment of the beneficiaries of the deduction to realise the investment no later than the end of the year of the reserve constitution,
• There shall be no transfer of assets concerning the said investment and before the end of the two years following the year of actual entry into production,
• There shall be no capital reduction during the five years from the date of incorporation, except in case of reduction for loss absorption.

The investments made by companies located in the Economic Activities Parks in order to fight against pollution resulting from their activities are eligible for the benefit of the following incentives :

• 1. The exemption from customs duty and suspension of VAT and consumption fees for imported equipment with no locally manufactured equivalent and suspension of VAT on locally manufactured equipment.
• 2. Taking advantage of this benefit is subject to the prior approval of the investment program and of the list of equipment necessary for the realization of these investments by the National Environmental Protection Agency, and in accordance with the provisions of Article 37 of the Investment Incentives Code.
• 3. A specific premium granted in connection with the intervention of the Clean-up Fund established by Law N° 92-122 of 29th December 1992 on the Finance Law for the year 1993.

The investments carried out in the field of research and development by companies established in the Economic Activities Parks give entitlement to the following incentives:

• 1. The exemption from customs duty and suspension of VAT and consumption tax in respect of imported equipment with no locally manufactured equivalent and which are necessary for the realization of these investments and the suspension of VAT for the equipment manufactured locally.This advantage is granted in accordance with Article 42 of the Investment Incentives Code.
• 2. A premium which rate and conditions for granting are fixed in accordance with Article 42 of the Investment Incentives Code

The foreign staff recruited in accordance with Article 24 of this Law and the investors or their foreign representatives responsible for company’s management benefit :

• 1. From the payment of a flat income tax rate of 20% of gross income,
• 2. From the exemption from customs duties and equivalent taxes and taxes payable on the importation of personal effects and of a passenger car for each person.

Transferring the vehicle or the imported effects to a resident is subject to foreign trade formalities and to the payment of duties and taxes in force at the transfer date, calculated on the basis of the vehicle or the effects value at that date.