Disclosure Requirements

Effective 1 January 2020, an annual transfer pricing disclosure return (containing specific information on the taxpayer as well as general information on the group) is required to be filed electronically along with the annual corporate income tax return. Effective from 1 January 2021, the annual transfer pricing disclosure requirement applies to companies performing controlled transactions with annual gross turnover exceeding TND 200 million and is limited to related party transactions exceeding in the aggregate TND 100,000 per year and per transaction category. The transfer pricing report is to be drawn on a format to be released by the tax authorities but must include the following information:

Information concerning the group of companies, including in particular:

type of activities and changes occurring during the reporting year;
transfer pricing policy adopted by the group; and
list of group assets used by the resident entity, including identity and country of tax residence of the group member owning the relevant assets;

Information concerning the resident reporting entity, including in particular:

type of business activities, including any changes occurring during the reporting period;
recapitulative table of controlled financial and commercial transactions including amounts involved, identity and tax residence of the counterparty, the transfer pricing policy used, and any changes occurring during the reporting period;
information on lending and/or borrowing transactions with related parties;
information on controlled transactions entered into for no consideration or for a non-monetary consideration; and
information on controlled transactions covered by a ruling, APA, or other correspondence by the tax authorities of the country of residence of the counterparty.

Standard Documentation

The Finance Law 2019 introduced a requirement for taxpayers to maintain transfer pricing documentation and to make it available to the tax authorities at the start of a tax audit. Effective from 1 January 2021 the documentation requirement is restricted to entities with an annual turnover exceeding TND 200 million if engaged in related party transactions exceeding an aggregate of TND 100,000 per year and per transaction category (previously, the requirement applied to all entities with annual gross revenues of TND 20 million or more).

Master File

The Master file contents should include the following information:

Organizational structure with a chart showcasing the MNE group’s legal and ownership structure and geographical location of operating;
MNE's areas of activities including:

details of sources/determination of profit;
description of the supply chain for five core products or services provided by the group along with other products or services contributing to 5% of the group’s turnover;
list and description of important service arrangements between members of the group other than research and development (R&D) services, including a description of capabilities of the main location rendering important services and transfer pricing policies adopted for allocating service costs and determining prices to be paid for intra-group services;
description of main geographic markets where group’s products and services are marketed;
functional analysis of principal contributions by individual entities within the group to value creation, i.e., core functions performed, significant risks assumed, and important assets used; and
description of important business reorganizations, along with acquisitions and divestitures that were undertaken during the financial year;

MNE's intangibles including:

general description of the group's strategy for development, ownership, and exploitation of intangibles, including the location of principal R&D facilities and management;
list of intangibles or classes (group) of intangibles of the group important from transfer pricing purposes, along with entity ownership;
list of important agreements between associated enterprises related to intangible assets, including cost distribution agreements, principal research service agreements, and license agreements; and
general description of significant transfer of interests in intangible assets between associated enterprises along with the reference of countries and related remuneration;

Financing activities between group members, including:

general description of the method of group financing, including a description of significant financing agreements, entered with independent lenders;
information pertaining to group members providing central financing function for the group, including countries in which they are organized and their place of effective management; and
general description of transfer pricing policies relating to financing agreements between associated enterprises; and

Financial and tax position, including:

annual consolidated financial statements of the group for the year concerned if prepared for financial disclosure purposes or as required by law or related to internal management; and
list and description of advance pricing agreements concluded by the group and other tax rulings pertaining to distribution of profits between countries.

Local File

The Local file should include the following information:

Local entity details, including:

description of management structure and organizational structure of local entity;
a detailed description of activities undertaken and strategies employed by the local entity, including whether the entity has been involved in reorganization or transfer of intangible assets during the current or previous financial year, and explanation of aspects of such operations involving the entity; and
key competitors;

Controlled transactions, including:

description of controlled transactions with associated enterprises and the conditions under which the transaction has taken place, including transactions pertaining to manufacturing services, purchase of goods, provisions of services, loans, financial guarantees, and licensing of intangibles;
amount of intra-group payments and receipts for each category of controlled transactions involving the local entity, specified as per tax jurisdiction of the foreign payer or recipient;
information on associated enterprises involved in each category of controlled transactions and their relationships;
copies of all important inter-company agreements concluded by the local entity;
detailed comparability and functional analysis of the local entity and relevant associated enterprises for each category of controlled transactions, including analysis of changes, if any, compared to previous financial years;
indication of the most appropriate transfer pricing method for each category of transactions and rationale for their selection;
in case of selection of associated enterprises as the tested party, submission of a statement along with the explanation for the choice;
summary of important assumptions made during the application of transfer pricing methodology;
clarification of rationale for adopting of multi-year analysis methodology;
list and description of comparable uncontrolled transactions and financial indicators for independent enterprises relied on within the transfer pricing analysis along with the description of the method used to search for the comparable data and sources of such data;
description of adjustments when undertaken, along with indications to whether adjustments were made to results of the tested party, comparable uncontrolled transactions, or both;
description of the rationale for concluding transfer pricing for transactions is at arm’s length principle;
summary of financial assumptions used for the application of transfer pricing methodology; and
copies of unilateral, bilateral, or multilateral APA’s and other tax rulings where Tunisia is not a party and relate to relevant controlled transactions;

Financial statements, including:

annual financial statements of the local entity for the financial year concerned;
information necessary for the understanding of financial data used for applying transfer pricing method for preparation of annual financial statements; and
summary tables of comparable financial data used in the analysis and the source of such data.

Country-by-Country (CbC) Reporting

Effective 1 January 2020, CbC reporting rules are introduced in Tunisia. The CbC reporting rules apply to Tunisian tax resident ultimate parent entities with consolidated annual turnover equal to or exceeding TND 1.636 billion during the financial year preceding the reporting financial year. The reporting rules apply to entities if:

They hold directly or indirectly, a stake in one or more companies that are required to prepare consolidated financial statements or would be required to do so if its shareholdings were listed on the Tunis Stock Exchange; and
The entity is not owned by:

a Tunisian resident company required to submit a CbC report; or
a non-resident entity that is required to submit a CbC report in accordance with a foreign jurisdiction’s legislation.

The primary reporting obligation falls on the ultimate parent entity of the group (UPE) if resident in Tunisia. Under a secondary filing obligation, constituent (non-UPE) entities are required to file locally in Tunisia if:

The UPE is not resident in Tunisia and is not obligated to file a CbC report in its jurisdiction of residence;
The UPE’s jurisdiction of residence has a current international agreement with Tunisia but does not have a qualifying competent authority agreement in effect with Tunisia by the time the CbC report is due; or
An agreement is in place, but there has been a systemic failure for spontaneous exchange of CbC reports with the UPE’s jurisdiction of residence, and the failure has been notified by the Tunisian tax authority to the constituent entity resident in Tunisia.

Where there are more than one Tunisian constituent entities of the same MNE Group and one or more of the conditions set out above apply, the MNE Group may designate one of such constituent entities to file the CbC report and notify the Tunisian tax authority that the filing is done on behalf of all the constituent entities in Tunisia.

Where the CbC report is required to be filed locally in Tunisia, the contents of the CbC report include the following for each jurisdiction:

Table 1:

revenues (unrelated parties, related parties, and total);
profit (loss) before tax;
income tax paid (cash basis);
income tax accrued - current year;
stated capital;
accumulated earnings;
number of employees; and
tangible assets - other than cash and cash equivalents.

Table 2:

constituent entities resident in each tax jurisdiction (including Tax ID and address);
jurisdiction of organization or incorporation if different from jurisdiction of residence; and
main business activities of each constituent entity.

Table 3:

additional information or explanation deemed necessary to understand the CbC report.

The CbC report is due within 12 months after the end of reporting financial year and the CbC report declaration (excel) must be submitted through the online declaration and payment system.

In relation to the secondary filing obligation, Tunisia published a decree on 15 June 2022, which provides the list of jurisdictions with which CbC reports will be automatically exchanged with effect from the 2020 reporting fiscal year. The list includes the following 90 jurisdictions:

Andorra	Anguilla	Argentina	Aruba
Australia	Austria	Azerbaijan	Bahamas
Bahrain	Barbados	Belgium	Belize
Bermuda	Brazil	British Virgin Islands	Bulgaria
Canada	Cayman Islands	Chile	China
Colombia	Costa Rica	Croatia	Curacao
Cyprus	Czech Republic	Denmark	Estonia
Finland	France	Gabon	Georgia
Germany	Gibraltar	Greece	Guernsey
Haiti	Hong Kong	Hungary	Iceland
India	Indonesia	Ireland	Isle of Man
Italy	Japan	Jersey	Kazakhstan
Korea	Latvia	Liechtenstein	Lithuania
Luxemburg	Macau	Malaysia	Maldives
Malta	Mauritius	Mexico	Monaco
Morocco	Netherlands	New Zealand	Nigeria
Norway	Oman	Pakistan	Panama
Peru	Poland	Portugal	Qatar
Romania	Russia	San Marino	Saudi Arabia
Senegal	Seychelles	Singapore	Slovak Republic
Slovenia	South Africa	Spain	Sweden
Swiss	Turkey	Turks and Caicos Islands	United Arab Emirates
United Kingdom	Uruguay

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