TAX NEWS - 2010

Tunisia Tax: Tunisia Corporate tax rate reduced for stock market listings

A law published on 7 June 2010 (Law 2010-29) aims to encourage Tunisian companies to list their shares on the Tunisian stock market with a view to making the market more dynamic.

The law provides for a five-year reduction in the corporate income tax rate from 30% or 35% to 20% for a company that lists at least 30% of its share capital between 1 January 2010 and 31 December 2014. The reduced corporate rate starts from the date the shares are listed on the stock market.

If the company's shares are removed from the stock market during the period the reduced rate is in effect, the company will be required to pay the difference between the corporate income tax due at the normal rate of 30% or 35% and the 20% rate, in addition to penalties.

The reduced corporate tax rate does not apply to telecommunications companies, oil and gas companies and oil and gas services companies or companies involved in the refining of oil and the wholesaling of oil products.