Tunisia Cross-Border Tax Guide

Withholding Tax on Outbound Payments

Payments to non-residents are subject to withholding tax at the following standard rates (subject to DTA reductions):

• Dividends: 10% (15% if paid to non-resident individuals without a DTA). Treaty rates often reduce to 5-10%.
• Interest: 10% on most payments, 20% on certain profit-sharing loans. Treaty rates typically 10-12%.
• Royalties: 10% for patents and know-how, 20% for trademarks and copyrights. Treaty rates reduce to 5-12%.
• Management and consultancy fees: 15% standard rate. Treaty reductions vary.
• Technical services: 15% withholding.
• Rental income: 15% on property rentals paid to non-residents.

The withholding tax is deducted by the Tunisian payer and remitted to the tax authority by the end of the following month. A withholding certificate is provided to the non-resident recipient. Treaty relief requires the non-resident to provide a certificate of residence from their home tax authority.

Double Tax Treaty Network — Over 50 Treaties

Tunisia has one of the largest DTA networks in Africa, with over 50 treaties in force including with: France, Germany, Italy, Spain, UK, Belgium, Netherlands, Switzerland, Austria, Algeria, Morocco, Egypt, Senegal, Ivory Coast, Mali, Mauritania, Qatar, UAE, Saudi Arabia, Kuwait, Bahrain, Oman, Turkey, China, Japan, South Korea, Pakistan, India, United States, Canada, and others. Key treaty rates for outbound payments typically reduce standard WHT rates. Tunisia also has tax information exchange agreements (TIEAs) and participates in the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Transfer Pricing — OECD-Aligned Rules

Tunisia's transfer pricing rules follow the OECD Transfer Pricing Guidelines. All related-party cross-border transactions must be conducted at arm's length. Key requirements include:

• Documentation threshold: Mandatory transfer pricing documentation required for transactions exceeding TND 1 million
• Master and local file: Tunisia requires transfer pricing documentation consistent with OECD BEPS Action 13
• Country-by-Country (CbC) reporting: Required for multinational groups with consolidated revenue exceeding EUR 750 million
• Advance Pricing Agreements (APAs): Available for taxpayers seeking certainty on transfer pricing methodology
• Penalties: Transfer pricing adjustments attract penalties of up to 15% of the adjusted amount

Thin Capitalisation — 1.5:1 Debt-to-Equity Cap

Tunisia has thin capitalisation rules limiting interest deductibility on related-party borrowings. Interest on loans from related parties is disallowed where the debt-to-equity ratio exceeds 1.5:1. Disallowed interest may be carried forward for 3 years. The rules apply to all related-party debt, including loans from foreign shareholders and affiliated companies. Third-party debt is generally not subject to thin cap rules unless guaranteed by a related party. Banks and financial institutions are exempt from these rules.

Controlled Foreign Corporation (CFC) Rules

Tunisia has CFC rules targeting passive income in low-tax jurisdictions. A foreign entity is a CFC if it is controlled by Tunisian residents and is subject to an effective tax rate of less than 50% of the Tunisian rate in its country of residence. Tunisian shareholders with a 10%+ interest in a CFC must include their proportionate share of the CFC's passive income (interest, dividends, royalties, rents, certain service income) in their Tunisian taxable income. Active business income is excluded. Exemptions apply for CFCs in jurisdictions with a comprehensive DTA with Tunisia.

Permanent Establishment (PE) Definition

Tunisia follows the OECD Model Tax Convention definition of a permanent establishment. A PE includes a place of management, branch, office, factory, workshop, or a construction site lasting more than 6 months. Non-resident digital service providers may also have a PE under the significant economic presence rules introduced in recent finance laws. Foreign companies with a PE in Tunisia must register with the tax authority and file annual tax returns on their Tunisian-source income.

Foreign Tax Credit

Tunisia provides a unilateral foreign tax credit for taxes paid abroad on foreign-source income. The credit is limited to the lower of the foreign tax paid and the Tunisian tax attributable to that income (per-country limitation). Excess foreign tax credits may be carried forward for 3 years. Where a DTA exists, treaty provisions for relief from double taxation apply. Tunisian residents receiving foreign income with foreign tax withheld must claim the credit in their annual return.

FAQs

How can a non-resident claim treaty benefits in Tunisia?

The non-resident must provide a certificate of residence from their home tax authority to the Tunisian payer. The payer then applies the reduced treaty withholding rate. If tax has been withheld at the standard rate, the non-resident may claim a refund from the Tunisian tax authority.

Does Tunisia have exit tax for companies emigrating?

Yes, if a Tunisian-resident company transfers its tax residence abroad, certain assets may be deemed to be disposed of, triggering CGT and potential income tax recapture.

Are payments for digital services subject to withholding tax?

Yes, payments for digital services (cloud computing, streaming, online advertising, software as a service) to non-residents are generally subject to withholding tax at 15%.

Disclaimer

This guide provides general information about Tunisian cross-border taxation for the 2026 tax year. Tax laws and treaty 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.