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Retained

  • Statutory Tax Rate 15
  • Surtax Based on Taxable Income 1
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 16

Statutory Tax Rate

The standard corporate tax rate for tax years starting on or after 1 January 2021 is 15%. The new standard rate unifies and replaces multiple rates which applied until 31 December 2020, including a 25% standard rate and lower rates of 20%, 13.5% and 10%. However, higher and lower rates still apply in specific situations which are as follows:

  • A higher corporate tax rate of 35% applies to financial institutions, investment companies, insurance and reinsurance companies, debt collection companies, telecommunication companies, oil and gas companies and their servicing subcontractors, supermarkets, car dealerships, and businesses operated under franchising agreements. However, the rate is reduced to 20% during 5 years for these companies if they have listed at least 30% of their ordinary shares during the period from 1 January 2010 to 31 December 2024.
  • A lower corporate tax rate of 10% applies to companies carrying out craft activities, agricultural and fishing activities, fitting out fishing boats, service cooperatives, and consumer cooperatives.
  • Another lower rate of 15% applied for a period of 5 years to companies subject to corporate tax at the standard rate which float at least 30% of their ordinary shares during the period from 1 January 2017 to 31 December 2024. However, with the lowering of the standard corporate tax rate to 15%, the benefit of reduced rate of 15% is not relevant.

In addition to the corporate tax, an additional social solidarity contribution on taxable income applies from 2018. The contribution generally applies at a rate of 1% on taxable income which is increased for years 2019, 2020 and 2021 for the following taxpayers:

  • 3% for resident and non-resident banks and financial and insurance institutions, with a minimum of TND 300;
  • 2% for companies subject to the 35% corporate tax rate, with a minimum of TND 300.

Effective 1 January 2020, the exceptional contribution of 1% applicable for banks, insurance companies, and telecommunication companies is repealed. The contribution applied from 1 January 2018 and was due at the rate of 5% for 2018 and 4% for 2019.

Surtax Based on Taxable Income

From 2018 an additional social solidarity contribution on taxable income applies at a rate of 1% on taxable income which is increased for years 2019, 2020 and 2021 for the following taxpayers:

  • 3% for resident and non-resident banks and financial and insurance institutions, with a minimum of TND 300;
  • 2% for companies subject to the 35% corporate tax rate, with a minimum of TND 300.