DGI Income Tax Brackets in Tunisia for 2024

Despite the various pressures on Tunisia’s economy including a slow recovery after the pandemic, the country’s strengths lie in its proximity to Europe, its many preferential or free trade agreements, an educated workforce, and a diversified and rapidly growing economy. From a tax perspective, there are benefits for offshore investments including tax exemptions on profits and reinvested revenue and full tax and duty exemption on raw materials, semi-finished goods and services.

The tax system is administered by the official tax body, the Direction Générale des Impôts (DGI) in Tunisia. The Finance Law for the Year 2024 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding income tax brackets and income tax rates, for effective tax planning and to remain compliant with the tax laws of Tunisia.

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) rates
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Tunisia

Personal Income Tax (PIT) Brackets for Individuals in Tunisia for 2024

Individual residents are taxed on the basis of their worldwide income whereas non-resident individuals are taxed on Tunisia-sourced income only. 

Net income is calculated as the gross salary of an individual less mandatory social security contributions. Benefits received by an individual, which can include lodgings, car, meals, school or medical expenses, are regarded as part of the individual’s gross salary.

Personal Income Tax (PIT) rates for individuals are tabulated below.

Non-residents working in Tunisia for a period or periods not exceeding six months per fiscal year are subject to a PIT flat rate of 20%

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Tunisia for 2024

Tunisian companies are subject to corporate tax in Tunisia on the basis of profits generated from their operations locally and those attributable by reason of a double taxation treaty (DTT). However, non-Tunisian resident companies are subject to corporate tax on the basis of Tunisia-sourced income only through withholding tax (WHT).

There are several CIT rates applicable and these may be subject to exemptions and tax incentives in certain circumstances. While there is a standard rate, a reduced rate may apply for certain activities. A higher rate may apply for companies whose shares are admitted to the Tunis Stock Exchange, for five years from the year they were admitted. Profits in connection with certain industrial or commercial projects or with regards to the promotion of small businesses are taxed at the rate of 10%. 

Several applicable tax types and the corresponding tax rates are tabulated below.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Tunisia

In Tunisia, capital gains are subject to the normal CIT rate. However, capital gains realized by individuals, whether resident or non-resident, are taxed at either:

• 10% where property is sold after a five-year period, from the date of acquisition
• 15% where property is sold before the five year period of detention from the date of acquisition

Withholding Tax Rates for Residents and Non-Residents in Tunisia

In general, withholding tax (WHT) is levied on residents and non-residents in Tunisia. Rates may vary depending on the source of income concerned. The WHT rates applicable to dividends, interest and royalties are tabulated below. 

The Finance Law 2022 has prescribed that WHT certificates must be issued through an electronic platform. Where an individual submits a WHT certificate that is issued manually without going through the electronic platform, a tax fine equal to 30% of the WHT amount will be levied.

Tunisia has also signed DTTs with several countries, which in turn, may impact the WHT rates. A taxpayer may benefit from the provisions of these DTTs.

Value-Added Tax Rates in Tunisia

While the standard Value-Added (VAT) rate in Tunisia is 19%, reduced VAT rates of 13% and 7% apply to specific operations.