In general, the legal framework for business investments in Tunisia can be summarized as follows:
- Tunisia has signed 52 double taxation avoidance agreements with other countries;
- Progressive tax exemption for 4 years for certain investments from the establishment of the company;
- Reduced tax rate of 15% on profits from certain high-value-added activities;
- Financial incentives of up to one-third of the project cost;
- Investment incentives for industrial projects in regional development areas and for tourism and agricultural projects;
- Possibility of covering social and employer contributions for certain investments for up to 10 years from the project's creation;
- 10% withholding tax on distributed dividends;
- Exemption from customs duties and VAT, regardless of the country of origin of imported goods and equipment (in case of project establishment in Tunisia);
- Ability to purchase local goods and services without VAT;
- Exchange rate advantage for offshore companies.
