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Taxes in Tunisia

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If you are planning to work or set up a business in Tunisia, here is what you need to know about its tax system.

When moving abroad, especially for professional reasons, taxes will probably be a key issue. So if you have chosen Tunisia, make sure to inquire on its tax system beforehand so as to avoid any surprise. Different types of taxes apply in the country, namely individual income tax, corporate tax, etc.

 Good to know:

Tax applies to legal residents in Tunisia.

Individual income tax

Individual income tax in Tunisia varies according to 6 different income brackets :

Income (in Tunisian dinars)         

Rate          
0 – 1500 0 %
1,500.001 – 5,000 15 %
5,000.001 – 10,000 20 %
10,000.001 – 20,000 25 %
20,000.001 – 50,000 30 %
Beyond 50,000 35 %

Investors

Tunisia provides a flat rate scheme for small businesses involved in industry, commerce, crafts, services, etc., provided their annual turnover does not exceed 30,000 Tunisian dinars per year. For more information, please refer to the local tax authorities.

Here is an overview of current rates:          

Turnover (in Tunisian dinars)  Amount (in Tunisian dinars) 
0 – 3,000 25
3,000.001 – 6,000 45
6,000.001 – 9,000 75
9,000.001 – 12,000 120
12,000.001 – 15,000 180
15,000.001 – 18,000 260
18,000.001 – 21,000 360
21,000.001 – 24,000 460
24,000.001 – 27,000 580
27,000.001 – 30,000 700

Taxable income

The following are classified as taxable income in Tunisia:

  • industrial and commercial benefits
  • non commercial professional benefits
  • benefits from farming and fishing
  • wages, salaries, pensions and annuities
  • income from securities and movable capital
  • property income
  • foreign income if they have not been taxed in the country of origin.

How is tax applied?

The net taxable income is calculated by the employer following deductions, professional charges and non taxable income.

On the other hand, taxable income is entitled to the following deductions:

  • 10% for wages and salaries
  • 25% for pensions and annuities
  • 80% for pensions and life annuities from abroad according to certain conditions
  • 30% for income from house property and for non-commercial professions.

Exemptions

The following income are exempt from tax:

  • dividends and similar income
  • interest deposits and securities in foreign currency or convertible dinars
  • interests on housing savings accounts
  • interests on savings accounts for education
  • plus values from the exercise by employees of stock options in the capital of companies mainly engaged in the IT services sector, computer engineering and related services, in the information and communications technology and new technologies sectors, as well as as well as listed companies, and subject to certain conditions, as well as companies listed in stock exchange under certain conditions
  • capital gains from the transfer of businesses due to the manager's retirement or inability to manage or from the transfer of business in the case of companies facing economic difficulties, under some conditions
  • interest on savings accounts for investment in the limit of 2,000 dinars per year
  • annuities paid according to life insurance contracts.

Deductions accounting for family responsibilities or to encourage investment in certain sectors:

  • arrears of rents paid as compulsorily and free
  • premiums relating to life insurance contracts within the limits set by applicable laws
  • interests on special savings accounts or bonds and within limits set by applicable laws
  • amounts deposited in savings accounts for investment and in share savings accounts up to a maximum of 20, 000 Tunisian dinars per year and subject to a minimum tax rate
  • reimbursement of university loans in principal and interest
  • income from exports for a total of 10 years as from the first export operation for businesses operating before 1 January 2011 and in the case of businesses that received an investment statement custody certificate before 1 January 2012, which come into effect and making their 1st export operation in 2011
  • income from the rental of buildings or restoration for the benefit of students, pupils and students in basic vocational training centers for 10 years
  • income from international brokerage within the limit of 50% for 10 years from the first international brokerage operation
  • income reinvested in the subscription to the capital of companies under conditions set by applicable laws on tax benefits
  • income reinvested in accommodation and restoration projects for the benefit of students, pupils and learners in vocational training centers under the minimum tax rate
  • deductions for dependents (family head, dependent children, dependent parents).

Procedures

Individuals are required to download their tax declaration from the tax department's website, duly fill and sign the form before depositing it at the nearest tax center to their place of residence. E-filing is also possible in the same website. However, any delay in payment is subject to penalties.

 Useful links:

Expat.com – Tax in Tunisia Forum 
Ministry of Finance www.finances.gov.tn
Ministry of Finance – Forms www.finances.gov.tn/index.php
E-filing www.impots.finances.gov.tn

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