Verified Facts
The tax rates in Tunisia range from 0% to 35% for personal income tax, with a corporate tax rate of 25% and a value-added tax (VAT) rate of 18%, making it essential for expats and businesses to understand the tax system to navigate their financial obligations.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Tunisia has a territorial taxation system, where individuals and companies are taxed on their income earned within the country, regardless of their residence status. However, residents are also subject to tax on their worldwide income, with credits available for taxes paid abroad. To be considered a resident for tax purposes, an individual must have a permanent home in Tunisia, be present in the country for more than 183 days in a calendar year, or have their center of economic interests in Tunisia.
The tax system in Tunisia is governed by the General Tax Code, which provides the framework for taxation of individuals and companies. The tax authorities in Tunisia are responsible for collecting taxes, and taxpayers are required to file their tax returns and pay their taxes on time to avoid penalties and fines. Tunisia has a network of tax treaties with over 60 countries, which helps to prevent double taxation and fiscal evasion.
Personal Income Tax
| Income Bracket (TND) | Tax Rate |
|---|---|
| 0 - 5,000 | 0% |
| 5,001 - 20,000 | 15% |
| 20,001 - 30,000 | 20% |
| 30,001 - 50,000 | 25% |
| 50,001 and above | 35% |
| Individuals are entitled to various deductions and allowances, such as a personal allowance of TND 5,000, mortgage interest relief, and charitable donations. Taxpayers are required to file their tax returns by March 31st of each year, and they can claim deductions and allowances on their tax returns to reduce their taxable income. |
Corporate & Business Tax
- The corporate tax rate in Tunisia is 25%, applicable to companies' taxable profits.
- Small businesses with an annual turnover of less than TND 100,000 are exempt from corporate tax.
- Companies operating in free zones are eligible for tax exemptions and other incentives.
- Foreign companies are required to register with the Tunisian Trade Register and obtain a tax identification number to operate in the country.
- Companies are required to file their tax returns and pay their taxes on time to avoid penalties and fines.
VAT / Sales Tax
- The standard VAT rate in Tunisia is 18%, applicable to most goods and services.
- A reduced VAT rate of 12% applies to certain goods and services, such as basic food items and pharmaceuticals.
- Exemptions from VAT are available for exported goods and certain services, such as financial services and education.
- A tourist refund scheme is available for foreign visitors, allowing them to claim a refund of VAT paid on certain purchases.
For Expats & Foreign Workers
- Expats are considered tax residents in Tunisia if they have a permanent home in the country or are present for more than 183 days in a calendar year.
- Tunisia has double taxation treaties with over 60 countries, which helps to prevent double taxation and fiscal evasion.
- Expats are required to obtain a tax identification number and register with the tax authorities to file their tax returns.
- Foreign workers are subject to social security contributions, which are deducted from their salaries.
- Expats are required to declare their worldwide income on their tax returns, including income earned outside Tunisia.
- Tunisia has a remittance tax of 5% on foreign currency transfers, applicable to individuals and companies.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to a withholding tax of 20%.
- Capital gains are taxed at a rate of 20%, or are included in taxable income.
- Cryptocurrency transactions are subject to VAT and income tax, depending on the nature of the transaction.
- Investors are required to declare their investment income on their tax returns and pay tax on their gains.