Incentive Legislation

The Tunisian economy is characterized by increasing liberalization, greater integration in the global economy and stronger competitiveness combined with a new regulatory and tax incentive framework.

The new Investment Law, which came into force on the 1st of April 2017, offers the following advantages:

  •     total freedom of foreign equity participation for offshore companies,
  •     reduction in the number of authorisations and review of the relevant specifications,
  •     freedom of access to land ownership for the realisation of the investment,
  •     guarantees to the investor in compliance with international standards for fair and equitable treatment and for the protection of industrial and intellectual property,
  •     freedom to transfer of funds (profits, dividends and assets) abroad,
  •     possibility to hire 30 % of foreign executives during the first 3 years by simple declaration and 10 % thereafter with 4 executives guaranteed in all cases,


Financial and Tax incentives

  •     Income tax rate reduced to 10 % for totally exporting companies,
  •     Total exemption from VAT and customs duties on inputs to products to be re-exported,
  •     Total tax exemption of benefits for up to 10 years granted to companies operating in regional development zones
  •     Specific investment grants in regional development zones covering up to 30 % of investment cost capped at 3 MTND
  •     Investment grants for priority sectors and value chains,
  •     Economic yield grant on intangible investment and research and development expenditure
  •     Subsidy of employers’ contribution to mandatory schemes,
  •     Subsidy of expenses incurred under training programs leading to certification,

 

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