Increases the corporate income tax and introduces incentives for new investments and R&D

On 9 December 2024, Tunisia adopted Act No. 48-2024 the Finance Act for the year 2025. The Act introduces several measures that impact investment, including the following: • The corporate tax rate increased from 15 per cent to 20 per cent. For the financial sector tax rate was raised from 35 per cent to 40 per cent for banks, financial institutions, and insurance companies. • Tax incentives for new enterprises including exemption for newly established enterprises that filed an investment declaration in 2024 or 2025, including exemption from corporate and personal income taxes for four years. These enterprises must commence operations within two years of their investment declaration and adhere to Tunisian accounting standards. Also, certain sectors, including financial and energy (excluding renewable energies), real estate development, and telecommunications, are excluded from this exemption. • Support for R&D, including permission for companies to deduct 50 per cent of R&D expenses incurred under agreements with public research institutions, capped at TND 400,000 (approximately $12,183) per year. An additional 50 per cent deduction is available for innovation expenses, also capped at TND 400,000 per year.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific

• Sources:

  • Official Journal of the Republic of Tunisia, Tunisia Act No. 48-2024 the Finance Act for the year 2025. , https://chaexpert.com/documents/Loi%202024_48%20Arabe.pdf, 10 Dec 2024