The standard corporate tax rate for tax years opened on or after 1 January 2021 is 15%. The new standard rate unifies and replaces multiple rates which applied hitherto, including a 25% standard rate and lower rates of 20%, 13.5% and 10% (see below). Nevertheless, higher and lower rates still apply in specific situations (see below).

Indeed, in the framework of the country’s commitment towards the EU to dismantle what is perceived as harmful tax regimes, the Finance Law 2020 repealed the favourable regime for exporting companies, removed the distinction between offshore and onshore businesses and introduced a lower corporate tax rate of 13.5% to apply from 1 January 2021 to all businesses active in specified economic sectors without distinction. However, this plan was shelved by the Finance Law 2021 before it actually effectively applied. Instead, the Finance Law 2021 eliminated the multiple rate structure and introduced a single unified corporate tax rate of 15% albeit not entirely across the board. Indeed, the higher rate of 35% and a lower rate of 10% still apply to specified businesses (see below). Also, a 20% rate for companies floating their shares on the stock exchange still applies to companies otherwise falling under the 35% higher corporate tax rate.

Higher Corporate Tax Rate (35%)

A higher corporate tax rate of 35% applies to financial institutions, investment companies, insurance and reinsurance companies, debt collection companies, telecommunication companies, oil and gas companies and their servicing subcontractors , supermarkets, car dealerships, and businesses operated under franchising agreements. With respect to sub-contractors of oil and gas companies, the Finance Law 2020 clarified that the higher tax rate of 35% applies to income from services directly related to oil and gas activities, while income from services not directly related to oil and gas remains subject to the standard corporate tax rate.

Lower Corporate Tax Rate (10%)

A lower corporate tax rate of 10% applies to companies carrying out specified activities including craft activities, agricultural and fishing activities, fitting out fishing boats, service cooperatives, and consumer cooperatives. Effective 1 January 2023, private health centres, hospitals, educational institutions and housing projects, vocational training centres , and scientific research institutions are subject to the standard rate of 15% instead of the lower 10% rate.

Lower Rate for Listed Companies

A reduced corporate tax rate of 20% applies during 5 years to companies that have listed at least 30% of their ordinary shares during the period from 1 January 2010 to 31 December 2024. The benefit of the 20% rate is in theory available regardless of the standard corporate tax rate otherwise applicable to the relevant company, but with the lowering of the standard rate to 15% is henceforth only relevant to companies subject to the higher 35% corporate tax rate (see above). Another lower rate of 15% also applies for a period of 5 years to companies subject to corporate tax at the standard rate which float at least 30% of their ordinary shares during the period from 1 January 2017 to 31 December 2024. However, the 15% tax rate advantage, whilst relevant when the corporate tax rate was 25%, is no longer relevant now that the standard corporate tax rate has been lowered to the same 15% across the board.

Interest Income

Interest income is subject to a withholding tax at the rate of 20%. The Finance Law 2021 stipulates that the withholding tax is a final and non-refundable tax in full satisfaction of the tax liability regardless of the tax status of the recipient.

Capital Gains

Capital gains are included in ordinary income and are taxed at the standard corporate tax rate. Effective 1 January 2023, capital gains arising from the sale of listed shares or securities within one year from the date of acquisition are taxable at the rate of 10% and at the rate of 15% if realized on the sale of unlisted shares or securities.

Previous Rates

Prior to the introduction of the unified standard corporate tax rate of 15%, different rates applied as follows:

10% for fully exporting companies from 1 January 2014 until 31 December 2020. Fully-exporting companies benefitted from a full corporate tax exemption for 10 years, followed by taxation at reduced rates thereafter. Fully exporting companies that were established before 1 January 2014 continue to benefit from the full corporate tax exemption until the expiry of their respective 10-year exemption period;
20% for small and medium-sized companies (SMEs) from 1 January 2018 until 31 December 2020. SMEs are companies engaged in trading and processing activities with total revenues not exceeding TND 1 million and companies engaged in services and non-commercial activities with total revenues not exceeding TND 500,000; and
13.5% for companies operating in specific business sectors, including electronics, automotive, pharmaceutical industry, call centers, high value-added consulting and research services, and others. The 13.5% rate was to apply from 1 January 2021 but has been removed before it effectively applied.

Minimum Corporate Tax

Companies subject to the standard corporate tax rate of 15% (25% until 31 December 2020) and the increased corporate tax rate of 35% are subject to a minimum corporate tax at a rate of 0.2% on the gross turnover when that amount exceeds the tax payable using the standard/increased rates. The minimum tax amount payable is TND 500. The Finance Law 2021 introduced a new rule pursuant to which where company subject to the standard corporate tax rate of 15% benefits from partial or full exemptions, the total corporate tax due may not be less than 10%.

Companies subject to the reduced corporate tax rate of 10% are also liable to the minimum corporate tax but at the rate of 0.1% of gross turnover. In their case, the minimum tax may not be less than TND 300.

Social Solidarity Contribution

Effective 1 January 2018, a 1% non-deductible social solidarity contribution has been introduced in addition to the corporate tax rates.

For the tax years 2023, 2024, and 2025, an increased social solidarity contribution applies as follows:

4% for companies subject to the 35% corporate tax rate; and
3% for all other companies.

For the tax years 2020, 2021 and 2022, the increased social solidarity contribution applied on the taxable income of specified taxpayers as follows:

3% for financial institutions and insurance companies with a minimum of TND 300; and
2% for companies subject to the 35% corporate tax rate with a minimum of TND 300 (investment companies, debt collection undertakings, oil sector, telecom companies, supermarkets, car dealerships, and franchisees).

Effective 1 January 2023, the social solidarity contribution due may not be lower than a specified amount depending on the corporate tax rate applicable to the relevant taxpayer, as follows:

Rate of Corporate Tax	Minimum Social Solidarity Contribution (Amounts in TND)
0%	400 (increased from 200)
10%	200 (increased from 100)
15% or 20%	400 (increased from 200)
35%	500 (increased from 300)

Temporary Contribution

Effective 1 January 2024, a temporary 4% contribution applies on taxable profits of banks, financial institutions, and insurance and reinsurance companies in 2024 and 2025, with a minimum annual contribution of TND 10,000.

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