Republic of Tunisia
Navigating international regulations with confidence
Currency
Tunisian Dinar – TND
Official Language
Arabic
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Fiscal Year
1 Jan - 31 Dec
Payroll Frequency
Weekly, Bi-weekly & Monthly
Tax System and Regulations
Income Tax Structure
Tunisia operates a progressive income tax system in which individuals are taxed at increasing rates of between 0% and 40% as their income rises. Residents are taxed on their worldwide income, while non-residents are only taxed on income sourced within Tunisia. Taxable income is calculated by deducting allowable expenses from gross income. For salaried employees, this includes mandatory social security contributions and a 10% deduction for professional expenses, capped at TND 2,000. Employers are required to withhold income tax at source and remit it monthly to the Direction Générale des Impôts (DGI), which operates under the Ministry of Finance. Expatriates who are paid from abroad must self-declare and pay their taxes monthly. Tunisia also offers a flat tax option of 20% for certain non-residents working in the country for six months or less per year, as well as for specific foreign employees in sectors like exporting companies, oil and gas, or those operating in free trade zones.
Payroll Taxes
Payroll taxes include mandatory social security contributions and several employer-paid levies. Employers are responsible for withholding personal income tax from employees’ salaries and remitting it to the DGI. Employees contribute 9.68% of their gross salary to the Caisse Nationale De Sécurité Sociale (CNSS), while employers contribute 17.07%. These contributions fund various benefits, including pensions, illness and maternity coverage, family allowances and the Workers’ State Fund (Fonds National de Promotion de la Santé et de la Sécurité au Travail or FNPST), which supports workplace health and safety programmes. Additionally, employers are solely responsible for paying contributions towards employment injury and occupational disease insurance, with rates ranging from 0.4% to 4%, depending on industry risk. Employers and employees also contribute 0.5% each of gross salary to the newly introduced Unemployment Insurance Fund (UIF). Beyond social security, employers are required to pay a Vocational Training Tax (TFP) of 2% of payroll, reduced to 1% for companies in the manufacturing sector. A further 1% Social Housing Promotion Levy (FOPROLOS) is also payable by employers. Combined, these obligations bring the typical employer payroll burden to around 20% to 21% of gross salary, depending on the occupational risk classification.
Tax Reporting and Payment Deadlines
Payroll tax reporting and payment obligations follow a structured monthly and annual schedule. Employers must file and pay personal income tax withholdings, vocational training tax and the social housing promotion levy by the 28th of the month following the salary payment via the DGI’s online platform (teledeclaration.tn). Reporting and payment of social security contributions to the CNSS is also monthly. Additionally, employers are required to submit an annual withholding tax summary (État Annuel des Salaires) by the end of February of the following year, summarising all income paid and taxes withheld. UIF and occupational injury insurance contributions are reported and paid monthly to the CNSS. Timely and accurate reporting is essential to remain compliant with Tunisian tax and labour regulations.
Compliance and Record-keeping
Employers must comply with a range of labour and tax regulations that require accurate payroll processing, timely reporting and strict record-keeping practices. Employers and payroll providers are required to maintain accurate and detailed payroll records to ensure compliance with tax and social security regulations. These records must include employee contracts, salary statements, payslips, time and attendance data, tax and social security declarations, and proof of payments made to the relevant authorities. Documentation must be kept for a minimum of ten years, and must be available for inspection by relevant authorities, including the DGI, the CNSS and the Labour Inspectorate. Employment contracts must be registered with the National Employment Agency (ANETI). Compliance is strictly monitored and employers must register new employees with CNSS within one month of hiring. Failure to meet reporting and payment deadlines can result in penalties, including interest charges of 1% per month on unpaid amounts and penalties of 0.5% per month for late declarations. Additional fixed fines may apply for underreporting or non-submission of required information. In serious cases, employers may also face tax audits, backdated assessments and reputational damage.
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