Incentives and Benefits

General framework

Tax and customs benefits

  • Exemption of imported equipment from customs duties and VAT
  • VAT exemption for locally manufactured equipment
  • Application of the reduced VAT rate of 6% on handicrafts.
  • Exemption from customs duties and reducing the VAT rate to 6% on imported products and raw materials needed for the craft sector.
  • 6% reduction of the VAT rate on the first materials and products manufactured locally and needed for the craft sector.
  • Fixing the tax rate to 10% on corporate profits.

Important

  • The grant of these benefits requires a certificate from the National Handicrafts Office.
  • The list of raw materials and equipment are determined by decree.

Financial benefits FONAPRAM

  • Refundable Depreciation
  • Investment bonus of 6%
  • Exemption from participation in FOPROLOS for the employees during the first three years from the date of actual activity.
  • Deduction of the professional training of the tax base during the first three years from the date of actual activity.

Other benefits

  •  Consideration of piece-work craftsmen as independent workers and the possibility of joining them into the new social security system with a monthly contribution of 10 dinars maximum.
  • Advantages in terms of export
  • Bonus of 25% of the total cost of transportation.
  • Financing a portion of commercials for the Promotion of Exports Fund.

 

Encouragement au développement régional

Legal texts 

  • Act No. 93-120 of December 27, 1993, promulgating the investment incentives code.
  • Act No. 2007-69 of 27 December 2007 on economic initiative.
  • Decree No. 2008-389 of February 11, 2008 fixing the premiums, lists of activities and infrastructure projects eligible for incentives under the Regional encouragement utilities.
  • Decree No. 2008-387 of February 11, 2008 concerning the establishment of zones of encouragement to regional development.

The advantages

The investments made by craft enterprises employing ten or more people and placed in the areas of encouragement of regional development, defined in terms of activities by Decree No. 2008-387, benefit from the following :

Fiscal advantages:

  • Deduction from revenues or profits from investments from the tax base of the personal income and corporate tax as follows :
    • Completely during the first five years from the date of actual activity for the first group to encourage the regional development.
    • Completely during the first ten years from the date of actual activity for the second group to encourage the regional development.
    • Completely during the first ten years and 50% deduction of revenues or profits for the next ten years for the priority areas to encourage regional development.
  • Subscription to the initial capital of the company or its increase leads to the deduction of income, profits invested income, or net profits subject to tax on personal income and corporate taxes.
  • The investments made by these companies result in the deduction of profits invested in the company of the net profits subject to corporation tax.
  • Exemption from contribution to FOPROLOS for employees during the first five years of the date of actual activity for investments carried in the second group of incentive zones to regional development and the zones of encouragement of regional development of priority.

Financial advantages :

An investment bonus of 8% of the investment cost of working capital excluded for projects implemented in the first group of zones of encouragement to regional development.

  • An investment bonus of 15% of the investment cost of working capital excluded for projects located in the second group of zones of encouragement to regional development.
  • An investment bonus of 25% of the investment cost of working capital excluded for projects located in the second group of priority regional development zones.

Advantages in terms of social security :

Investments in the craft sector located in the encouragement of regional development areas benefit from state support of the employer's contribution to social security scheme for wages paid to Tunisian agents as follows :

  • For the first group of incentive to regional development areas, the State supports a proportion of this contribution for the first five years from the date of actual activity as follows:
  • first year: 100%
  • second year: 80%
  • third year: 60% *
  • Fourth year: 40%
  • Fifth year: 20%
  • For the second group of incentive to regional development areas, the state supports this contribution for the first five years from the date of actual activity.
  • For priority regional development zones, the state supports this contribution for the first five years from the date of effective activity and a proportionate share of this contribution for an additional period of five years, as follows:
  • first year: 80%
  • second year: 65%
  • third year: 50%
  • Fourth year: 35%
  • Fifth year: 20%