Adopted Tax Incentives Law n° 2017-8
01 Feb 2017
On 14 February 2017, Tunisia adopted Tax Incentives Law n° 2017-8. The Act aims to streamline and enhance the tax incentive system, focusing on key areas such as regional development, export operations, and agricultural development. The law includes the following main features and provisions:
• Export Operations: The law provides significant tax incentives for companies involved in export operations. These incentives aim to boost Tunisia's export sector by offering tax benefits to companies that generate revenue through exports.
• Investments in Regional Development Zones: To promote economic growth in less developed regions, the law offers tax incentives for investments in designated regional development zones. This includes deductions and exemptions aimed at encouraging businesses to establish operations in these areas.
• Agricultural Development: The law also targets the agricultural sector, providing tax benefits to encourage investment in agricultural development. This includes incentives for activities that support agricultural productivity and sustainability.
• Support and Depollution Activities: Incentives are provided for activities that support environmental protection and pollution control. This is part of a broader effort to promote sustainable development practices within the country.
• Newly Created Companies: Newly established companies, except those in certain excluded sectors (e.g., financial, energy other than renewable energy, real estate development), can benefit from a phased deduction of taxable profits over the first four years of operation: 100% deduction in the first year, 75% in the second year, 50% in the third year, 25% in the fourth year. To qualify, companies must submit an investment declaration, maintain compliance with the National Social Security Funds, and implement an investment financing scheme with a minimum rate of equity capital.
• Conditions for Tax Incentives: To benefit from these tax incentives, companies must: Submit an investment declaration to the relevant authorities; Ensure their annual tax return is accompanied by a certificate from competent authorities confirming the effective start of activity; Maintain compliance with the National Social Security Funds; Implement an investment financing scheme with a minimum rate of equity capital.
The law excludes certain sectors are excluded from these incentives, including financial services, non-renewable energy, real estate development, on-site consumption, trade sectors, and telecommunications operators. Additionally, companies formed through transmission operations or legal form modifications are not eligible.
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Type:
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Promotion and facilitation (Investment incentives)
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