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Taxes on Business

Taxes on Business

Corporate income tax

Tax Base For Resident and Foreign Companies
Foreign companies are taxed on the profit they make in Tunisia.
 
Tunisian-resident companies are subject to corporate tax in Tunisia on the basis of profits generated from permanent establishments (PEs) located in Tunisia and those attributable to Tunisia by virtue of a double taxation treaty (DTT). Non-Tunisian-resident companies are subject to corporate tax on the basis of their Tunisian-sourced income.

PEs of non-Tunisian-resident companies are subject to corporate tax in the same way and under the same conditions as Tunisian-resident companies. However, certain particularities, related mainly to deductions, exist (see the Branch income section).

Corporate tax is also due by non-resident, non-PE companies on Tunisian-sourced income through WHTs.

Corporate tax is broadly levied on the total net income resulting from the statutory financial statements of the company, duly adjusted according to the specific tax rules:
  • Corporate tax: 25%
  • For telecom, financial, insurance companies, companies operating in the hydrocarbons sector: 35%

VAT / Sales tax

VAT is levied under the Tunisian VAT Code and is due on all transactions taking place in Tunisia. The sale of goods is considered as taking place in Tunisia and thus subject to VAT if the goods sold are delivered in Tunisia.

The sale of services is considered as taking place in Tunisia and thus subject to VAT if the services sold are exploited or used in Tunisia.
 
VAT applies according to 3 rates:

6%, namely for:

medical activities drugs and pharmaceuticals, canned food,

products of local crafts and raw materials used in this sector...,

transport operations of individuals and agricultural products on behalf of others.

12%, namely for:

machines for processing information and services carried out in information technology, hotel services and a list of tourist services (thalassotherapy and hydrotherapy, catering),

equipment goods (according to a list),

low and medium voltage electricity used in the operation of agricultural equipment and low voltage electricity for domestic use,

certain types of fuels other than gasoline and natural gas, ;operations to transport goods other than agricultural and fishery products.

• 18%, this is the standard rate. It applies to transactions for which the law did not provide for another rate.

Other taxes on business

Tax on luxury products: 29%