Tunisia taxes resident individuals on worldwide income, but resident companies on a modified-territorial basis - profits generated from Tunisia-located permanent establishments plus profits attributable to Tunisia under an applicable treaty (see Residency below) - rather than on worldwide corporate profits; non-residents are taxed on Tunisia-source income only. Tunisia has no CFC rules. Tunisia operates a self-assessment system, with the Direction Generale des Impots conducting post-filing review.
The Tunisian tax year is the calendar year.
Tunisia's headline corporate income tax (CIT) rate is 20%.
The headline personal income tax (PIT) rate is 40%.
The standard VAT/GST (or equivalent consumption tax) rate is 19%.
An individual is a Tunisian tax resident if their principal residence (domicile) is in Tunisia, or if they stay in Tunisia (continuous or discontinuous) for 183 days or more in a calendar year, or are a civil servant/state employee posted abroad who is not subject to home-country tax on worldwide income. DTT tie-breaker rules govern where dual residency arises. Tunisian-resident companies are taxed on profits from Tunisia-located PEs and profits attributable to Tunisia under an applicable treaty (a modified-territorial approach rather than pure worldwide taxation); non-resident companies are taxed on Tunisia-source income only.
A non-Tunisian entity has a Tunisia permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Tunisia on the entity's behalf, following the OECD Model Treaty definition as applied under Tunisian domestic law and any applicable tax treaty.
Tunisia has no CFC rules.
Tunisia has no fixed debt-to-equity ratio but restricts shareholder current-account interest deductibility: capped at a maximum 8% rate, conditioned on the company's capital being fully paid up and the remunerated amount not exceeding 50% of capital; the 8% cap doesn't apply to banks. Separately, a 25% withholding tax applies to payments (including interest) made to persons in jurisdictions with a "privileged tax regime" (CIT rate below 50% of Tunisia's rate).
Tunisia does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Tunisia does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; consistent with Tunisia (for companies)'s territorial (or primarily source-based) system described in Tax System above, foreign-source income generally falls outside the domestic tax base rather than being reported and then taxed.
Tunisia does not provide a broad participation exemption for foreign dividends; relief from double taxation is available primarily through Tunisia's foreign tax credit system.
Tunisia has a foreign tax credit mechanism for foreign tax paid on foreign-source income also taxed in Tunisia, capped at the Tunisian tax otherwise due on that income.
Tunisia has established approximately 48 tax treaties.