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Tunisia-Investment Incentives Code
Section-X
Miscellaneous Provisions
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Article-52 : *

Notwithstanding the provisions of Articles 1, 2 and 3 of the present Code, additional benefits can be granted concerning the following:

- Exemption from income tax or companies tax for a period not exceeding 5 years;

- State participation in infrastructure expenditure;

- Investment grants up to the limit of 5% of the value of the investment;

- Suspension of current duties and taxes for the equipment necessary to make the investment.

These encouragements are granted by decree after notification from the Higher Investment Commission when the investments are of particular value to the national economy or to frontier zones.

The organisation and terms and conditions governing the operation of this Commission are fixed by decree.

Article-53 : *

Industrial and fisheries companies whose activities have been terminated and which have been started up again by promoters other than their former directors and managers can enjoy the tax or financial benefits envisaged by the present Code. These encouragements are granted by decree after notification by the Higher Investment Commission.

Article-54 : *

For raw materials, products and articles intended for the manufacture of equipment with no locally-manufactured equivalent, industrial companies can enjoy the same taxation system as is applied to similar equipment imported in the finished state and enjoying an exemption or reduction in customs duties or a suspension of value added tax and consumption duty.

The list of equipement eligible for the taxation system envisaged in the preceding sub-paragraph is fixed by decree.

Article-55 : *

The incentives concerning suspension or reduction of or exemption from customs duties and taxes envisaged in Articles 9,30,37,41,42,48,49 and 50 are applied to equipment imported or acquired locally according to the lists and conditions fixed in the provisions envisaged by those articles, notwithstanding the provisions of Article 1 of the present Code.

Article-56 : *

Investments made in the tourist sector give entitlement to a 10% reduction in customs duties, the suspension of value added tax and consumption duty due on the import of equipment with no locally-manufactured equivalent and the suspension of value added tax on locally manufactured equipment.

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

Article-57 : *

The incentives concerning the suspension or reduction of or exemption from customs duties and taxes envisaged in Articles 9,30,37,41,42,48,49 and 50 and applied to equipment imported or acquired locally can be replaced by the allocation of investment grants for certain sectors and activities.

The operation of the replacement, the amount of the grants and the conditions governing entitlement to the benefit are fixed by decree.

Article-58 : *

Contracts concerning the acquisition from property developers of buildings or land developed for the exercise of economic activities or of land intended for the construction of buildings for housing are registered at the fixed rate provided they have not been previously operated or sold by those developers.

Article-59 : *

Documents recording the change of ownership for a consideration between non-residents concerning tourist accomodation are exempted from registration and stamp duties if made in the framework of a tourist project and acquired in convertible foreign currency by non-residents as defined by Articles 5 of the Foreign Exchange and Trade Code.

Article-60 : *

Moveable objects and effects intended for equipping tourist accommodation belonging to non-residents are admitted free of import duties and taxes in accordance with Article 170 of the Customs Code.

The terms and conditions governing the grant of this exemption are fixed by decree.

Article-61 : *

At the time when they start operating the project to their benefit, management companies which operate a project realised in the framework of the present Code are entitled for the remainder of the period to the benefits awarded by virtue of income tax on natural persons and companies tax or by virtue of the State's assuming responsibility for the employer's contribution to the legal social security system.

Article-62 : *

If an investment made in the framework of the present Code gives entitlement to several investment grants, the total of those grants may not exceed 25% of the cost of the investment, not including the State's participation in responsibility for the infrastructure works.

Article-63 : *

Companies are authorised to move from an encouragement system to another system, provided they present a declaration in application of the provisions of Article 2 of the present Code, to proceed with the formalities necessary for that purpose, and to settle difference of the total value of the benefits granted according to those two systems.

Moreover, those companies which move from an encouragement system to another system before expiry of two complete years from the date they actually started activity under the initial system, must pay the delay penalties for the losses suffered by the State because of their change from one system to another. These penalties are calculated on the basis of the taxes and duties due at the rates envisaged in paragraph one of Article 73 of the Code on income tax on natural persons and companies tax, and the investment grants, as from the exemption date or the date when those grants were obtained.

Article-64 : *

During the period when their investment programme is being realised, companies enjoying the incentives envisaged by the present Code will be the subject of a follow-up and control by the relevant administrative services in charge of supervising adherence to the conditions governing entitlement to the benefits granted.

Article-65 : *

The beneficiaries of the benefits envisaged by the present Code will lose their entitlement to them if they do not respect its provisions or do not begin to execute the investment project within one year from the date of declaring the investment.

Moreover, if the project is not realised or in the case of the illegal alteration of the initial object of the investment, the promoters will be obliged to repay the grants and benefits allocated plus the delay penalties as envisaged by Article 63 of the present code.

Benefits are withdrawn and grants repaid through a justified decision by the Minister of Finance after notification, or on the proposal of the services concerned after those services have heard the case of the beneficiaries.

Article-66 : *

As well as the sanctions envisaged by other laws, any infringement of the provisions of Articles 2,3 and 16 of the present code is liable to a fine of between 1,000 and 10,000D, the announcement and collection of which are made according to the above-mentioned laws, on top of forfeiture of the right to the benefits of the present Code, announced after the defaulting party has been heard.

Article-67 : *

The courts of law of Tunisia are competent to investigate any dispute between foreign investors and the Tunisian State unless otherwise agreed by an arbitration clause or a clause permitting one of the parties to appeal to arbitration according to the ad-hoc arbitration or conciliation procedures envisaged by one of the following agreements:

- Bi-lateral agreements for the protection of investments signed between the Tunisian State and the state of which the investor is a national,

- The International Convention for the settlement of disputes concerning investments between States and the nationals of other states ratified by Law n66-33 of 3dr May 1966,

- The Convention concerning the creation of the Arab organisation for the guarantee of investements approved by Decree Law n72-4 of 17th October 1972 and ratified by Law n72-71 of 11th November 1972,

- Or any other international convention concluded by the gouvernment of the Republic of Tunisia and legally approved.