These incentives
measures are set up to encourage the investments in certain
sectors or areas.
Encouragement
of regional development
The manufacturing industries and certain tourism activities
have the following incentives:
• 10 year personal or corporate income tax exemption
followed by a taxation at 50% of the normal rate for the ten
following years
• Full tax exemption in respect of reinvested profits
in share subscription or increases of the company's registered
capital including profits reinvestment within the company
itself
• Exemption from the contribution to the promotion of
Employee Housing Fund (FOPROLOS) during the first 5 years
of activity
• Payment by the State of the employers’ contribution
to the Social Security during a period of 5 years starting
from the first day of activity
 Encouragement
of agricultural development
Two important incentives are granted to the investors in the
agricultural field :
• Grant ranging from 7% to 30% of the cost of investment
according to project
• Grant for the study cost amounting to 1% of the investment
amount with a maximum of 5.000 TD
Environmental
protection
Companies investing in measures to reduce pollution or which
specialize in the collection, treatment and recycling of household
and industrial waste may benefit from the following incentives
:
• Full exemption from corporate income and similar taxes
• Custom duty exemption for imported equipment, necessary
for the realization of the project and for which no equivalent
is manufactured locally and suspension of VAT and consumption
tax
• Suspension of the VAT on the equipment manufactured
locally
Technology
and Research-Development
Incentives are offered for investments in technological training
companies operating in the sectors of industry, agriculture
and fishing :
• Exemption from custom duties and similar taxes, and
suspension of the VAT and the consumption for imported equipment
necessary for the realization of the project and for which
no equivalent is manufactured locally
• Suspension of the VAT on the equipment manufactured
locally
• Grant for the study amounting to 50% of the cost of
investment up to a maximum of 25,000 TD and 50% of the cost
of realization up to a maximum of 100,000TD
•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.
These incentives are granted to initiatives carried out over the period starting with entry into force of law n° 2007-69 and ending on 31 December 2011, on condition that the initiative is effectively carried out and that start up of activity begins within two years of the date on which land is acquired, used in line with the stated purpose and as per specifications drawn up by the relevant ministry for a period of no less than 15 years.
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