Tunisia continues to offer an attractive investment environment in 2026, with a combination of standard corporate tax rates, targeted incentives, and sector-specific benefits designed to encourage productive and export-oriented investments.
Corporate Tax Landscape :
Resident companies are subject to a standard corporate income tax (CIT) rate of 20% on net profits. Certain qualifying sectors benefit from a reduced rate of 10%, while specific industries, such as banking, financial services, and insurance, face higher rates of 40% (effective from January 1, 2024). The general higher rate is 35%. Minimum tax thresholds apply, with 0.2% of local turnover (0.1% for 10% CIT categories) and minimum amounts of TND 500 (TND 300 for reduced sectors). These rates form the baseline before any incentives are applied.
Investment Incentives:
Tunisia’s Investment and Tax Incentives Laws provide multiple avenues for investors to reduce their effective tax burden.
Regional Development Zones (Tax Holiday):
Companies investing in designated regional development zones can enjoy a 100% deduction of profits from taxable income for up to 5 years in Group 1 zones and 10 years in Group 2 zones. After the exemption period, profits from the investment are taxed at a preferential rate of 10%. Eligibility requires filing an investment declaration, certifying the start of activity, complying with social security obligations, and meeting minimum equity requirements.
Newly Created Companies :
New enterprises, excluding finance, non-renewable energy, telecom, mining, real estate, and retail/on-site consumption, benefit from a phased corporate tax exemption: 100% in the first year, 75% in the second, 50% in the third, and 25% in the fourth. This applies if operations begin within two years of declaring the investment.
Export-Oriented Activities :
Companies exporting all products or services, including goods sold to wholly exporting clients, are eligible for full exemptions and preferential tax treatment under export regimes. Combined with other export incentives, this results in a significantly reduced effective tax burden.
Other Fiscal Incentives :
Investors can also benefit from capital reinvestment allowances, permitting deductions of up to 100% of profits reinvested as initial capital or capital increases, subject to conditions. Customs duties, VAT, and consumption taxes may be exempted or suspended for imported or locally purchased investment equipment. Additionally, state participation and financial support may cover a portion of investment costs depending on project size, employment creation, and sector priorities.
Recent 2026 Updates:
Although corporate tax incentives mainly derive from investment-specific laws rather than the annual Finance Law, 2026 introduces a 4% permanent contribution on profits for financial institutions, telecom operators, and car dealers (non-deductible). Social solidarity contributions continue to apply, and electronic invoicing requirements have been expanded to cover service activities.