| COUNTRY PERSPECTIVES
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TUNISIA |
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How to invest in Tunisia? |
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How to invest in Tunisia? |
Tunisia offers foreign investors an attractive range of services and advantages and has defined a favourable legal framework. It is based on the « investment incentive code », which entered in force on 1st January 1994. This code offers common advantages to all investments in the activities listed as well as specific advantages in relation to precise objectives such as exporting, regional development, etc..
The common advantages concern tax relief on profits reinvested within a limit of 35% of the tax base, the exoneration of customs duty and a reduction of VAT to 10% for capital goods imported and the possibility of opting for the reducing charge method for tools and production equipment.
Specific advantages such as exoneration from company tax for 10 years and the reduction of 50% of the taxable base from the 11th year for an unlimited period, the exoneration of registration dues, total exemption of duties and taxes for capital equipment including goods transport equipment, materials, semi-transformed products and the services necessary for the activity are granted to companies wholly devoted to exporting.
Foreign participation in industrial companies and services is unestricted. Foreigners may, without prior autorisation, hold up to 100 % of the capital. However, certain service activities other than those totally devoted to exports are subjected to approval when the foreign participation exceeds 50 % of the capital.
Financial and fiscal incentives have been reserved by the investment incentives code to areas known as "regional development encouragement zones" and "regional priority development zones". The projects located in these zones benefit respectively from an investment bonus of 15% (capped at 450,000 dinars) and 25% (capped at 750,000 dinars) of the amount of the investment as well as a total exoneration of company tax and income tax of the physical persons for the first 10 years of the activity and a reduction of 50% of the tax base for the following 10 years.
The formalities for the constitution of companies may be carried out in the “One Stop Shops” of the API in the regions of Tunis, Sousse and Sfax. On average, a limited company may be constituted within three days.
Tunisia has two economic activity parks (PAE). Companies totally export-oriented which are located here profit from a fiscal regime similar to that of the free trade zones as well as the single contact who is charged with carrying all the formalities of creation necessary on behalf of the company as well as building services and connection to the public utility networks. |
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