Summary:

On 19 December 2024, the Order of Chartered Accountants of Tunisia (OCET), expressed concern over the new finance law on the sidelines of a conference the group organized on the issue. 

The conference included discussions on the increase in the general corporate tax rate from 15% to 20%, or more depending on profits, for companies with a turnover exceeding five million dinars.  

Some accountants at the conference expressed that this rise in the corporate tax is excessive, saying that the new finan

Outlook: 

Details concerning tax raises in the new finance law have been circulating since October 2024 in international journals including Reuters and CNBC but now that the bill is approved by the parliament, it is starting to draw the attention of local observers. 

The Tunisian government is trying to resolve its persistent financial difficulties and continued need to resort to loans by fixing higher tax rates. Raising taxes will likely prove concerning for foreign investors and create further challenges to attracting and reaping the benefits of hosting private firms. 

Critics also claim the new rates could be non-attractive to exporting investors that may instead choose to do business in neighboring countries which offer more comparative advantages.  

As only 5.5% of the institutions in Tunisia have a turnover rate exceeding 5 million dinars, the new tax rate is also unlikely to significantly reduce the need to secure other financing deals from the Central Bank and, potentially, international creditors. 

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