Income Tax Treaty between the United States and Tunisia

 

United States-Tunisia Tax Treaty

Tunisia’s International Tax Compliance Rules

Quick Summary.  The northernmost African country, the Tunisian Republic borders Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east.  Tunisia has a unitary representative democratic republic with a unicameral legislature.  Its judicial system is heavily influenced by French civil law.   

Resident Tunisian companies are subject to tax  on profits from permanent establishments.  Non-resident companies are subject to tax on Tunisian-sourced income.

Resident individuals are taxed on their worldwide income, whereas non-residents are taxed only on Tunisian-sourced income.  

U.S.-Tunisia Tax Treaty

Tunisia is a member of the World Trade Organization and OECD.  

Tunisia Tax Treaty.  Convention between the Government of the United States of America and the Government of the Tunisian Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, together with a related exchange of notes, signed at Washington on June 17, 1985

Currency. Tunisian dinar (TND)

Common Legal Entities.  Société à Responsabilité Limitée (SARL), Joint stock company, partnership, and branch.

Tax Authorities.  La Direction Générale des Impôts (General Directorate of Taxes).

Tax Treaties. Tunisia has established 48 tax treaties.  

Corporate Income Tax Rate.  25%s

Individual Tax Rate.  36%

Corporate Capital Gains Tax Rate.  Corporate ordinary income rates apply.

Individual Capital Gains Tax Rate

Residence.  Based upon primary residence or presence for 183 days during calendar year.  

Withholding Tax.

            Dividends. 10% 

            Interest.  0-20% (resident) / 10-20% (non-resident)

            Royalties.  5-15% (resident) / 15-25% (non-resident)

Transfer Pricing.   Tax authorities have authority to adjust prices to reflect a market price.  

CFC Rules.  No.

Hybrid TreatmentN/a

Inheritance/estate tax.  Yes, 35%

Tax Treaty Network – International Tax Attorneys

Our international tax expertise allows us to guide clients through tax planning and compliance so that they can focus on what matters most. At Freeman Law, our clients are engaged in an interconnected business environment that spans across the globe.  From supply chains to markets, cross-country taxation impacts every global business.

Do you have questions about Tunisia’s Tax Treaties? Schedule a consultation with one of Freeman Laws International Tax Experts Today!