Tax laws Tunisia
Tunisia's taxation system comprises various taxes administered by the General Directorate of Taxes.
Key Components of Tunisia's Tax System:
Personal Income Tax (PIT):
- Rates:
- A progressive scale applies, with rates ranging from 1% to 36% based on income levels.
- Social Solidarity Contribution:
- An additional 1% contribution is levied on taxable income, increasing the effective PIT rates.
- Flat Rate Option:
- Non-resident employees working in Tunisia for up to six months may opt for a flat tax rate of 20% on gross income.
Corporate Income Tax (CIT):
- Rates:
- The standard rate is 15%, with reduced rates of 10% for specific activities and higher rates up to 35% for sectors like banking and telecommunications.
- Tax on Financial Institutions:
- Banks and financial institutions are subject to a CIT rate of 35%.
Value Added Tax (VAT):
- Rates:
- The standard rate is 19%, with reduced rates of 7% and 13% for certain goods and services. Some essential items may be exempt or zero-rated.
- Registration and Filing:
- Businesses must register for VAT at establishment and file monthly returns.
Recent Developments:
- 2025 Tax Increases:
- In response to financial challenges, Tunisia plans to increase taxes on higher-income individuals and corporations, particularly banks and insurance companies, with rates rising to 40%.
International Tax Agreements:
- Double Taxation Treaties:
- Tunisia has established 48 tax treaties to prevent double taxation and fiscal evasion.
For comprehensive and current information, it's advisable to consult the General Directorate of Taxes or a tax professional, as tax laws and regulations are subject to change.
RELATED Blog
0 comments