Tunisian Government to Revise Corporate Tax Rates
As part of Article 18 of the 2025 Finance Law, the Tunisian government plans to revise its corporate tax rates, introducing a progressive system based on annual turnover and the nature of the activity. The proposed new rates are as follows:
10% Tax Rate
- Annual turnover: No minimum or maximum amount
- Nature of activity: Priority sectors and support activities, including agriculture, elderly care, regional development, and culture
15% Tax Rate
- Annual turnover: Less than 5 million dinars
- Nature of activity: All other activities not concerned by the 10%, 35%, or 40% tax rates
20% Tax Rate
- Annual turnover: Equal to or greater than 5 million dinars and less than 20 million dinars
- Nature of activity: All other activities not concerned by the 10%, 35%, or 40% tax rates
25% Tax Rate
- Annual turnover: Equal to or greater than 20 million dinars
- Nature of activity: All other activities not concerned by the 10%, 35%, or 40% tax rates
35% Tax Rate
- Annual turnover: No minimum or maximum amount
- Nature of activity: Investment companies, telecommunications network operators, and large commercial surfaces
40% Tax Rate
- Annual turnover: No minimum or maximum amount
- Nature of activity: Insurance institutions, financial institutions, and banks
Minimum Tax Rate
In parallel with the revision of corporate tax rates, a minimum tax rate will be introduced to ensure greater equity in taxation. The new minimum tax rates are as follows:
- For 15% and 20% corporate tax rates: Minimum tax rate of 10%
- For 25% corporate tax rate: Minimum tax rate of 15%
- For 35% and 40% corporate tax rates: Minimum tax rate of 25%
Impact on Tunisian Businesses
This revision of corporate tax rates could have significant effects on the entrepreneurial landscape in Tunisia. By introducing a progressive tax system, the government aims to encourage small and medium-sized enterprises (SMEs) while targeting large corporations and more lucrative sectors. Priority sectors will benefit from reduced taxation, which could stimulate investment in key areas such as agriculture and culture, while promoting job creation and regional development. On the other hand, companies with high turnovers, particularly those exceeding 20 million dinars, may feel increased pressure due to higher tax rates, prompting some to reassess their investment strategies or presence in Tunisia. Furthermore, by diversifying tax rates according to activity, Tunisia could become more attractive to foreign investors, particularly in sectors benefiting from reduced rates, contributing to an influx of capital and strengthening the local economy. However, this progression of tax rates could also introduce additional administrative complexity, obliging companies to closely monitor their turnover and activity to apply the correct tax rate.
