Tunisia Corporate Tax Guide 2026

Overview — Corporate Tax in Tunisia

Corporate tax in Tunisia is governed by the Code de l'Impôt sur le Revenu des Personnes Physiques et de l'Impôt sur les Sociétés (CIRPPIS) and administered by the Ministry of Finance. A company is tax resident in Tunisia if it is incorporated under Tunisian law or if its place of effective management is in Tunisia. Resident companies are taxed on worldwide income; non-resident companies are taxed only on Tunisian-source income. The standard tax year is the calendar year. Companies must register for tax upon incorporation and file annual returns by April of the following year.

Standard Corporate Tax Rate — 15%

The standard corporate income tax rate in Tunisia is 15% of taxable profits for most resident companies. This rate was reduced from 25% to 15% under the 2023 Finance Law as part of the government's efforts to improve the business climate and attract investment. The 15% rate applies to: manufacturing, trading, services (except banking/insurance/telecom), agriculture, technology companies, and most other sectors. Taxable profit is calculated as gross revenue less allowable deductions including operating expenses, depreciation, financial costs (subject to thin capitalisation rules), and provisions.

Higher Rate — 25% for Banking, Insurance, Telecom, and Petroleum

The following sectors are subject to a higher IS rate of 25%:

• Banks and financial institutions: All licensed banks, leasing companies, factoring companies, and microfinance institutions
• Insurance companies: All insurance and reinsurance firms
• Telecommunications: Fixed-line and mobile operators, internet service providers
• Petroleum and mining: Oil and gas exploration, production, and distribution companies, mining companies

These sectors are subject to higher rates due to their profitability and regulatory framework. Some petroleum companies may have specific rates under their production-sharing agreements.

Depreciation Rules

Tunisia uses a declining balance depreciation system (with the option of straight-line for certain assets). Standard depreciation rates include:

• Industrial buildings: 5% (straight-line)
• Commercial and office buildings: 3% (straight-line)
• Machinery and equipment: 10–15% (declining balance)
• Computers and software: 33.33% (declining balance)
• Vehicles: 20% (declining balance)
• Furniture and fixtures: 10% (straight-line)
• Intangible assets (goodwill, patents): 10–20% (straight-line)

Accelerated depreciation is available for certain green investments, energy-efficient equipment, and pollution control assets. For example, a TND 100,000 machine at 10% declining balance would depreciate TND 10,000 in year 1, TND 9,000 in year 2, etc.

Loss Carry-Forward

Tax losses may be carried forward for 5 years following the loss year. Losses cannot be carried back. The loss offset is limited to 50% of taxable profits in any single year for losses incurred in certain sectors. For example, a company with a TND 200,000 loss in 2025 and TND 100,000 profit in 2026 could offset TND 50,000 (50% of profit) against the loss, leaving TND 150,000 to carry forward. Change of control rules apply — losses may be forfeited if there is a significant change in ownership.

Tax Incentives

Tunisia offers a range of tax incentives to encourage investment, including:

• Exporting companies: 100% exemption from CIT for the first 10 years, 50% exemption thereafter
• Regional development zones: 100% exemption for 5 years in priority zones
• Technology parks: Exemption from CIT for 5 years
• Agriculture and fisheries: Exemption from CIT for 10 years
• SMEs: Reduced rates for qualifying small and medium enterprises
• Investment premium: Tax credit equal to 25–35% of eligible investment costs

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts penalties of 10–25% of the tax due plus interest at 0.75% per month. The tax authority may also impose a minimum tax assessment. Non-compliance may result in enforcement actions including bank account attachments.

Can a foreign company have a branch in Tunisia?

Yes, foreign companies may operate through a branch registered with the Tunisian tax authority. The branch is taxed at the standard IS rate (15% or 25% depending on sector) on its Tunisian-source profits.

Are dividends paid by a Tunisian company subject to withholding tax?

Dividends paid to resident companies and individuals may be subject to withholding tax at 10% (final tax for individuals). Dividends to non-residents are subject to 10–15% withholding, subject to treaty relief.

Does Tunisia have thin capitalisation rules?

Yes, Tunisia limits interest deductions on related-party loans where the debt-to-equity ratio exceeds 1.5:1. Excess interest is disallowed and may be carried forward for 3 years.

Disclaimer

This guide provides general information about Tunisian corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Tunisian tax advisor or the Ministry of Finance for advice specific to your situation. InvestmentKit does not provide tax advice.