The draft of the Finance Bill has been published, and the main measures proposed in this draft are listed below:

1- The current corporate tax rates (IS) of 25%, 20%, and 13.5% will be replaced by a single rate of 18% on profits made from 2021 onwards and declared in 2022.
Commentary: Companies that are fully export-oriented (both resident and non-resident), which were exempt from corporate tax until 12/31/2020 or subject to a reduced rate of 10%, will now be subject to an 18% tax rate on profits for the year 2021 (to be declared in the 2022 IS declaration). In fact, the 13.5% rate, which was supposed to take effect in 2021, has been raised to 18% without any justification.

This increase is likely to reduce future foreign investment in Tunisia and may even cause existing investments to leave.

Moreover, the absence of a comprehensive strategy to reassure investors can only push current foreign investments out of Tunisia.

Additionally, the 4-year tax exemption benefit will end on 12/31/2020, and the 2022 Finance Bill has not planned for the continuation of this benefit or any similar incentive.

✓ The IS rates of 10% and 35% remain unchanged.

2- The flat-rate regime for individuals with an annual turnover of less than 100,000 DT will be replaced by a specific tax regime based on a flat-rate taxation indexed to the net profit rate depending on the activity and region, ranging from 6% to 17%.

3- Implementation of a tax revision system called "limited tax adjustment."

4- Encouragement of savings in stock portfolios (CCA) (increase of the deduction from 50,000 DT to 100,000 DT, provided the invested amount is blocked for 5 years) and life insurance contracts (increase of the annual deduction from 10,000 DT to 100,000 DT, provided the contract is maintained for 10 years).

5- Reduction of customs tariffs on vehicles for the tourism and leisure sectors (ATVs, yachts, etc.).

6- The cash transaction limit will be reduced from the current 5,000 dinars to 3,000 dinars (for all purchases, sales, real estate purchase contracts, etc.). Non-compliance with this provision will subject violators to an 8% fine on the transaction amount (in addition to the non-deduction of VAT and the associated expense).

7- No individual or company can pay vehicle circulation taxes (vignettes) without declaring income or corporate taxes.

8- The VAT rate on fixed telephone and internet services provided by telecom operators for domestic use has been reduced to 7%.

9- A new 15% tax on revenue generated by media through betting and gambling, scratch games, digital games, and lotteries on the internet and websites has been introduced (the 25% withholding tax on cash winnings will no longer apply).

10- Encouragement for individuals to purchase homes with a loan: they will benefit from a reduction in their 2021 annual income tax, up to 100 dinars per month. It should be noted that the contract for this acquisition must be concluded in 2021.