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Tunisia-Investment Incentives Code
Section-V
Agricultural Development
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Article-27 : *

The incentives envisaged by the present Code, by virtue of agricultural development, are applicable to investments related to the following:

- Use of the natural resources available in order to increase agricultural and fisheries production,

- Modernisation of the agricultural and fisheries sector and improvement of its productivity,

- The first transformation of agricultural and fisheries products and their packaging,

- Services activities related to agricultural and fisheries production.

The activities involved in the first transformation, product packaging and services mentioned in the present article are fixed by decree.

Article-28 : *

Investments in the agricultural and fisheries sector are classified as follows:

- Category "A": investment made by small farmers and fishermen,

- Category "B": investment made by medium-sized investors in agriculture and fisheries,

- Category "C": investment made by large investors in agriculture and fisheries, in activities involving the first transformation of agricultural and fisheries products and their packaging as well as in services related to agricultural and fisheries activities.

The criteria governing the classification of these investments, whether in the from of occasional operations or integrated projects, are determined by decree, mainly on the basis of the income, the area operated, the cost of the investment and the volume of the fisheries equipment covered by the investment.

Article-29 : *

Investments made by services co-operatives, agricultural and fisheries services companies and associations of operators and agricultural owners are entitled to the benefits awarded to category "B".

The terms and conditions on which these benefits are awarded are fixed by decree.

Article-30 : *

The investments envisaged in Article 27 of this code give entitlement to the following tax incentives:

1. Subject to 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, subscription to the company's initial capital or 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. A 10% reduction in customs duty and suspension of value added tax and consumption tax on the import of equipment with no locally-manufactured equivalent and suspension of value added tax on equipment manufactured locally.

The list of this equipment and the conditions governing entitlement to this benefit are fixed by decree;

3. Deduction of the incomes originating from these investments from the taxable basis for income tax on natural persons and companies tax for the first ten years following the date activity actually 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;

4. Reimbursement of the duty on the change of ownership of agricultural land intended for the investment at the purchaser's request. This request must be presented not later than one year after declaration of the investment.

Article-31 : *

Category "A" investments give entitlement to the specific grants whose conditions and terms of allocation are fixed by decree.

Article-32 : *

1. An investment grant;

2. A grant awarded by virtue of the State's participation in the cost of studies related to the investment.

The conditions and terms of allocation of these grants are fixed by decree.

Article-33 : *

Notwithstanding the provisions of Article 62 of the present Code, the agricultural investments lised below give entitlement to receive specific overall grants, to the exclusion of any other grant:

- Acquisition of agricultural equipment;

- Installation of irrigation systems facilitating the saving of irrigation water;

- Water reconnaissance and prospecting operations;

- Cereal irrigation;

- Work on the conservation of land and waterways;

- The multiplication and production of seed;

- The creation of routes and areas intended for pasture and the planting of forage shrubs and forest trees.

The rates and terms of allocation of these grants are fixed by decree.

Article-34 : *

Agricultural investments made in areas with difficult climates and fisheries investments in zones whose resources are under-exploited can be entitled to an additional grant.

The list of regions with difficult climates and under- exploited fisheries resources, as well as the rates and terms on which the grants are awarded, are fixed by decree depending on the activity involved.

Developpers investing in activities involving the first transformation of agricultural and fisheries products eligible for the incentives envisaged for the encouragement of agricultural and regional development can opt for one of these two systems and enjoy the incentives attached thereto.

Article-35 : *

Investments made in developing zones intended for fish farming or corps using geothermal energy are entitled to a grant by virtue of the State's participation in responsibility for infrastructure expenditure.

The amount, conditions and terms of allocation of this grant are fixed by decree.

Article-36 : *

Land loans can be granted for the purchase of agricultural land by agricultural technicians and young farmers or to enable the developers of agricultural projects to acquire shares in joint ownerships in an agricultural operation forming a single unit.

The terms and conditions governing the allocation of agricultural land loans are fixed by decree.

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