Tunisia aspires to become the industrial and technological hub of the Mediterranean region. It has all the requisites: its geographical position is strategic, in the center of the Mediterranean and only a 2-hour flight from the main European capitals and 24 hours of navigation from the main ports, which makes it an ideal platform for access to markets of the Maghreb, the Near and Middle East and Africa and especially those of the European Union.
To enhance its strategic position and entice investors, Tunisia is approving legislative reforms that increasingly incentivize foreign investments, favoring increasing liberalization and introducing favorable tax regulations.
The new investment law, which entered into force on April 1, 2017, facilitates investments by leaving total freedom of shareholding in the capital for offshore companies, reducing the number of authorizations, guaranteeing freedom of access to landed property for the construction of the investment, and reshaping adherence to international principles to ensure fair treatment with respect to the regulation of industrial and intellectual property.
The new law then introduces the freedom to transfer funds (benefits, dividends and assets) abroad, the possibility of recruiting 30% of foreign managers during the first years with a simple declaration, and 10% later, with 4 responsible persons guaranteed in all cases.
The law of 2017 was followed by the law of May 29, 2019, for the enhancement of investments. The new law aims to simplify procedures. On the one hand, by streamlining the bureaucratic process. And in fact, it prohibits public administrations from demanding from investors documents that it owns or that come from its services or from other public structures. On the other hand, by simplifying the public-private partnership procedures. It also encourages investments in renewable energy.
The new law also broadens the definition of an international trading company, allowing resident international trading companies to re-export some of their new imported products.
So what are the fiscal and financial incentives enjoyed today by those who want to invest in Tunisia?
Tax rates on the benefit reduced to 10% for fully exporting companies
Total exemption from VAT and customs duties for the inputs of the products to be re-exported
Total exemption of benefits up to 10 years for companies located in regional development areas
Investment bonuses for priority sectors and economic sectors
Specific investment premiums in regional development areas, up to 30% of the investment cost, for a maximum of 3 million Tunisian dinars
Economic profitability premium for intangible investment and research and development expenses
Taking charge of the cost of the certified training
Taking charge of the employer's contribution
To these incentives are added those aimed at favoring the areas of regional development, which are updated annually. All that remains is to find out with a qualified local consultant which is the best solution for your business!
Mr. Maitre Bilel Mechri
This article is written by a licensed lawyer in Tunisia, member of our international network. The content of this article does not constitute legal advice, but has an informative function. For tailor made legal advice, contact the firm by e-mail to: info@dongpartners.eu or by phone +39 06 916505710. © Dong & Partners International Law Firm, All rights reserved .