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Tunisia-Investment Incentives Code
Section-IV
Regional Development Incentives
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Article-23 : *

The investments made by companies established in the zones for the encouragement of regional development defined according to their activities by decree in the industry and tourism sectors and in certain service activities, the list of which is also fixed by decree, are entitled to the following benefits:

1. Subject to the provisions of Articles 12 and 12 bis of Law n89-114 of 30th December promulgating the Code for income tax on natural persons and companies tax, subscription to the initial capital of those companies or to its increase gives entitlement to deduction of the incomes or profits invested from the net incomes or profits liable to income tax on natural persons or companies tax.

The investments made by those companies also give entitlement to deduction of the profits invested in the company itself from the net profits liable to companies tax.

Entitlement to these benefits is subject to adherence to the conditions envisaged in Article 7 of the present Code;

2. Deduction of the incomes or profits originating from investments from the taxable basis of income tax on natural persons or companies tax for the first ten years from the actual date production begins, notwithstanding the provisions of Articles 12 and 12 bis of Law n89-114 of 30th December 1989 promulgating the Code of income tax on natural persons and companies tax, and the deduction of 50% of those incomes or profits for the following ten years;

3. Exemption from the contribution payable to the fund for the promotion of housing for employees for the first five years of actual activity.

Article-24 : *

The companies covered by Article 23 of the present Code are entitled to the following:

1. An investment grant representing part of the cost of the project, including study costs, determined according to the activities and zones involved;

2. A grant representing participation by the State in the infrastructure expenditure necessary for the realisation of industrial projects.

The amount of these grants and the terms and conditions governing their allocation are fixed by decree.

Article-25 : *

The State takes responsibility for the employer's contribution to the legal social security system for the salaries paid to Tunisian employees for a period of five yeras from the date activity actually begins for investments made in the sectors of industry, tourism and services as defined by Article 23 of the present Code.

Article-26 : *

Public works and property development companies which carry out infrastructure and collective equipment operations, the list of which is fixed by decree depending on which encouragement and regional development zones are involved, are entitled to deduct 50% of the profits originating from those projects from the taxable basis for income tax on natural persons or companies tax.

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