Expatriate tax ebook - Tunisia

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Any foreigner, except Union du Maghreb Arabe « UMA » nationals, who desires to exercise a salaried work in Tunisia, should have a working contract and a residence card bearing the mention « authorized to exercise a salaried work in Tunisia ».

The working contract is concluded for a period not exceeding one year renewable only once. However, the working contract may be renewable more than once if it deals with foreigners working in their companies that operate in Tunisia within the framework of the realization of development projects approved by the relevant authorities.

The recruitment of foreigners can only be realized when there are no Tunisian skills within the specialties concerned by the recruitment

The foreigner worker should provide the following documents:

Four printed working contract forms, bearing the company’s stamp and signature as well as the worker’s signature, in accordance with the sample made available at the central and regional departments of the Labour Ministry
The company’s legal documents in relation with its incorporation in Tunisia
Recruitment and Tunisification Program approved by the regional Labour Department
A copy of the foreign worker’s valid passport.
Copies of diplomas and professional qualifications

Employment visas
Entry visas are not required for almost all European Countries. However, for workers who benefit from a working contract, they should apply for residence cards from the relevant regional police offices. This procedure is not required for UMA (Union des Maghreb Arabe) nationals.

Tax year
Tax is levied annually on the total amount of revenues received during the previous year. The annual tax covers the period from January 1st to December 31.

Tax returns and compliance
Natural persons resident in Tunisia should file their annual income tax returns according to the following calendar:
Up until February 25 for persons realizing revenues from securities or real estate and those of foreign sources.

Up until May 25 for persons who carry out industrial activity or a non-commercial profession, as well as persons who carry out several activities or realize more than one revenue category
Up until December 5 for salaried employees and the beneficiaries of pensions or life annuities.

Income tax rates
Income tax rates applied in Tunisia :
For the determination of the income tax, it is advisable to determine the taxable revenue for the year of imposition per income category subject to income tax by applying the following tax schedule:

Brackets	Effective Rate (%)	Rate (%)
< 1 500DT	0	0
From 1 500,001 DT to 5 000 DT	10,5	15
From 5 000,001 DT to 10 000 DT	15,25	20
From 10 000,001 to 20 000 DT	20,12	25
From 20 000,001 to 50 000 DT	26,05	30
>50 000 DT	35	35

For persons with a salary equal to SMIG « Minimim Guaranteed Salary" the first bracket is 2 000DT.

Sample income tax calculation

Employment income
Annual Gross Salary before social contribution	50 000,000

In-kind benefits : Company car: 2 400,000 DT (according to transportation benefit) Fuel 3 600,000 DT Telephone 1 200,000 DT	7 200,000


Taxable Salary before CNSS	57 200,000
Deduction, CNSS (Employees’ contribution) 8,47 %	(4 844,840)
Balance 1	52 355,160
Deduction for professional expenses 10%	(5 235,516)


Balance 2	47 101,644
Common Deductions: Head of family 150,000 DT 1st dependent child 90,000 DT 2nd dependent child 75,000 DT Life Insurance Premium 800,000 DT	(1 115,000)
Net Taxable Salary	45 986,644
Rounded to the above dinar	45 987,000
Income Tax Calculation: 20 000 * 26,05% = 5 210,000 DT 25 987 * 30% = 7 796,100 DT	13 006,100

Information about Tunisia:

tax planning opportunities

Last updated 16 June 2011

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Contact us

For further information on expatriate tax services in Tunisia please contact Jabrane Ben Zineb.

Related websites

Ministry of Finance - Taxes
www.portail.finances.gov.tn/
www.profiscal.com
www.juristetunisie.com

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