Abc Audit Business et Conseils

ABC Audit Business & Consulting

benefits and advantages when investing in Tunisia

Slideshow Image Slideshow Image Slideshow Image Slideshow Image Slideshow Image

Invest in tunisia

You have the benefit of several advantages when you invest in Tunisia
• Freedom to invest in numerous sectors
• Clear and investment-friendly legislation in a single code
• Numerous advantages for totally exporting companies
• A skilled labor force with a surprising aptitude to rapidly master new technologies
• A real legal protection for the investor
• A foreign exchange market with freedom of transfer
• A functional infrastructure continuously improving

INVESTMENTS INCENTIVES

Entered into force in January 1994, the Investment Incentives Code is the law that governs both national and foreign investment. It confirms the freedom to invest in most fields and reinforces the Tunisian economy openness to the global world.

There are numerous incentives, in the form of tax exemption, investment bonuses, no-cost infrastructure, and assumption of employer’s share of social costs.

Common incentives

Tax relief on reinvested profits and income up to 25% of the income or profits subject to tax.
Customs duties exemption for capital goods that have no locally made counterparts.
VAT limited on capital goods imports .
Possibility to choose the reducing balance method of depreciation for production material and equipment which useful life exceeds 7 years.


Specific incentives


Advantages to fully-exporting companies


10% tax on exports-derived profits for the first 10 years.
Full exemption on reinvested profits and income.
Duty free profits for capital goods including merchandise transport vehicles, raw materials, semi-finished products and services needed by the business.
Possibility of selling on the local market: 30% of production for industrial goods

Regional development zones

Tax and related breaks

The investment incentives code governed by law n°2007-69 of 27/12/2007 provides for benefits for investments in regional development zones.
Full tax exemption on reinvested profits and income.
Deduction from the tax base for individual or corporate tax of income or profits on investments in industry, tourism, handicrafts or certain service activities, as follows:

- 100% for the first five years dating from effective start up of activity for companies located in zones being encouraged in the context of regional development that are part of the first group (law n°2007-69 of 27/12/2007).
- 100% for the first 10 years dating from effective start up of activity for companies located in zones being encouraged in the context of regional development that are part of the second group (law n°2007-69 of 27/12/2007).
-100% for the first 10 years and up to 50% of such income for the next 10 years for companies located in priority zones being encouraged in the context of regional development (law n°2007-69 of 27/12/2007).
Assumption by the State of the employer’s contribution to the legally-constituted social security system as part of the wage package for Tunisian staff financed by investments in industry, tourism, handicrafts and certain service activities, as follows:

Possibility that the State takes part to infrastructure expenses.

Financial incentives

a. Industries and related services
Investment bonus of 15% of the investment value in incentives zones limited to TND 450,000 to TND 750.000
b. Tourism
A premium of 8% to 25% is available for lodgings, entertainment facilities, and spas

Agricultural development

Full tax exemption on reinvested profits and income.
Full tax exemption for the 10 first years of operation.
VAT suspended on imported Capital goods that have no locally-made similar counterparts.
The State may take part to infrastructure expenses to develop areas meant for fish farming and for cultivations using geothermal water.

Environmental protection


Regulations governing investments made by companies relating to environmental protection and processing of waste confer the following incentives:
50% tax reduction on reinvested income or profits
income and profits taxed at a reduced 10% rate
20% premium on the value of investments
suspension of VAT due on specific capital goods

Research and Development and Technology promotion

The code as well as law n° 2007-69 relating to measures to introduce incentives for investments that contribute to mastering and developing technology by means of a local integration approach
The State assumes the total cost of the employer’s share of contributions for the first two years, then partial coverage (ranging from 85% to 25%) for another five years for recruitment of recent graduates of higher education who have a minimum level of baccalaureate plus two years of post-secondary studies.
5-year 50% social security contributions assumption by the State for companies to use a 2nd or a 3rd shift and that do not usually work around the clock.

Support investment

Education, training, cultural production, health and transport industries benefit from :
The deduction of reinvested profits up to 50% of net profits subject to corporate tax.
Reduced rate of 10% on income and profits.
VAT suspension for imported capital goods having no similar locally-made counterparts.

Additional incentives

Several incentives have been made available under the terms of a decree issued after recommendation by the Higher Commission for Investment. These are applicable when the investment is high or of particular interest for the national economy or for border zones or if the investment is in education, higher education or vocational. 

TAXES

Fiscal year

The fiscal year begins on January 1st and ends on December 31st of the same year.

Corporate tax

Tax rate for resident companies

The regular rate is 25%.
However, a rate of 10% applies to exportation companies and those exercising a craft, agricultural activity, fishing or armament of fishing boats or to cooperatives of services or consumption.

Tax rate on long-term capital gains

In Tunisia, capital gains are taxed at the rate of 30%. 


System governing groups of companies and dividends paid by subsidiaries to their parent companies

Dividends paid by a Tunisian company to their associates/ share holders are subjected to a withholding tax of 5%.

Tax rate on branches

The corporate tax is applied on financial sector and telecommunication is 30%

Income tax

Income tax rate

The rate is progressive from 0% to 35%, shared out into 6 brackets.

Under 1 500 TND 0%
1 500,001-5 000 TND 15%
5 000,001-10 000 TND 20%
10 000,001-20 000 TND 25%
20 000,001-50 000 TND 30%
Beyond 50 000 TND 35%

VAT rates

Standard rates 

The rate of common law is 18%. ; 


Reduced rates

There are two other rates :

- 6% for operations focused on goods and services (interests,...) . Consult see the list in the income and corporate tax code ;
- 12% for operations focused on goods, activities and services (12% on fees...). Consult see the list in the income and corporate tax code.


ACCOUNTING AND AUDIT STANDARDS

Tunisia have it’s own Tunisian GAAP, developed in 1996 based on the IASC standards. IFRS are very close to the Tunisian GAAP
A project of convergence with IAS- IFRS standards is currently studied by the government.
Tunisia has a Professional Institute of Chartered Accountants (OECT- Ordre des Experts Comptables de Tunisie) who has adopted since 2006 the full IFAC standards for ethic and audit.

Search

Who's online

We have 15 guests and no members online

Share !

Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedIn

Flash info

Audit engagement

REGIME FISCAL DU SOLDE DE TOUS COMPTES /

GRATIFICATION DE FIN DE SERVICE+ DOMMAGE ET INTERETS

Read more...

TRAITEMENT FISCAL DES AVANTAGES EN NATURE EN TUNISIE

TRAITEMENT FISCAL DES AVANTAGES EN NATURE EN TUNISIE

Read more...

TEXTES D’APPLICATION DE LA LOI N°60-30 DU 14 DECEMBRE 1960

TEXTES D’APPLICATION DE LA LOI N°60-30 DU 14 DECEMBRE 1960

Read more...