Personal Income Taxation in Tunisia
Personal Income is taxed in Tunisia depending on the overall income earned by the individual over the course of time. This includes both, income sourced within Tunisia, as well as income sourced outside Tunisia. For non-residents in Tunisia, only Tunisian-sourced income is subject to personal income taxation. However, withholding tax (WHT) is mostly applied at source in order to deduct personal income tax at source.
Personal Income Tax Rates in Tunisia
Personal income is taxed in Tunisia at the following rates:
- For an income between TND (Tunisian Dinar) 0 and TND (Tunisian Dinar) 5,000: PIT is exempted.
- For an income between TND (Tunisian Dinar) 5,000 and TND (Tunisian Dinar) 20,000: PIT is levied at a rate of 26%. The effective rate on limit is 19.5%.
- For an income between TND (Tunisian Dinar) 20,001 and TND (Tunisian Dinar) 30,000: PIT is levied at a rate of 28%. The effective rate on limit is 22.33%.
- For an income between TND (Tunisian Dinar) 30,001 and TND (Tunisian Dinar) 50,000: PIT is levied at a rate of 32%. The effective rate on limit is 26.20%.
- For an income higher than TND (Tunisian Dinar) 50,001: PIT is levied at a rate of 35%.
Corporate Income Tax Rates
Under the corporate income tax regime in Tunisia, resident business entities are supposed to pay taxes on income that has been earned and sourced both, globally, as well as locally. On the other hand, non-resident business entities are only supposed to pay corporate income tax on the income that has been sourced from within Tunisia.
However, for non-resident business entities, Corporate Income Tax is withheld at source.
Corporate Income Taxation Rate in Tunisia
Corporate Income Taxes are levied in Tunisia at the following rates:
- For realized profit following January 1st 2021, the applicable rate will be 15%.
- For small enterprises, the applicable rate of CIT is 15%.
- For enterprises operating in strategic sectors, the applicable CIT rate is around 15%.
- Additionally, there are specific rates, pertaining to selected industries. These rates are levied at 10%, 15% and 35%.
- The reduced rate of 10% is applicable on the following businesses:
- Companies involved in agricultural sector, and fishing businesses.
- Trading groups and allowed retail businesses.
- Service cooperatives (involved in wholesale production)
- Consumer cooperatives (general cooperation legislation)
- The 20% rate of CIT is applicable on the following conditions:
- For companies that are levied tax at a rate of 35%, and whose shares are admitted to the Tunis Stock Exchange. This rate is applicable for 5 years from the year of admission.
- The 35% rate is applicable on the following conditions:
- Banks, and other financial institutions,
- Investment based companies,
- Insurance, and medical related companies,
- Takaful related companies
- Car dealers
Minimum Corporate Tax:
Minimum corporate tax is charged at the rate of 0.2% on the local turnover. This includes VAT, as well as a minimum charge of TND 500.
Other Taxation in Tunisia
- Value Added Tax (VAT): VAT is levied as a consumption tax at a rate of 19%. There are lower rates applicable, of 13% and 7%. It is payable on a monthly rate.
- Custom Duties: Custom Duties are applied across all imported goods and services.
- Import VAT: All imported goods are subject to VAT at imported rates. Fresh milk, milk flour, as well as other goods and services are charged under this regime, depending on the relevant category involved.
- Custom Duties: Custom Duties are mostly levied importations made in Tunisia, other than the European Union.
- Excise Taxes: There are no excise taxes levied in Tunisia.
- Property Taxes: Property Taxes are levied in the form of a real estate tax. They are charged differently by the relevant municipalities.
- Transfer Tax: Under the transfer tax collection, all contracts and agreements are supposed to be registered at the rate of 0.5%. Transfer of immovable properties require a charge equivalent to 5%. Similarly, 2.5% is levied on the transfer of goodwill.
- Stamp Duties: Stamp duties are fixed at 0.6 TND per most invoices. However, there are certain exceptions in place too.
- Social Solidarity Contribution: Social Solidarity Contribution is due at a rate of 1% on the taxable profit. It is levied on the following rates:
- For companies that are levied CIT at a rate of 35%: CSS is charged at a rate of 300 TND.
- For companies that are levied CIT at a rate of 15% to 20%: CSS is charged at a rate of 200 TND.
- For companies that are levied CIT at a rate of 10%: CSS is charged at a rate of 100 TND.
- Social Security Contributions: The social security system in Tunisia is financed by both, employers, as well as employees. For employers, the contribution is equivalent to 16.57%, whereas contribution for employees is set at 9.18%.
- Social Lodging Tax: Social Lodging Tax is levied at a rate of 1% of the gross salaries paid to the employees, which also includes benefits in kind.
- Vocational Training Tax: This tax is calculated at 2% of the gross amount of the salaries paid to the employees.