Invest in Tunisia: Reform 2025 and its implications for investors

Tunisia is starting the 2025 fiscal year with several major economic and fiscal reforms. These include increases to the SMIG (Guaranteed Interprofessional Minimum Wage) and SMAG (Guaranteed Minimum Agricultural Wage), as well as benefits such as tax and customs amnesties. Taxpayers will need to adapt quickly to take advantage of the new measures. The economic and tax reforms are also designed to make it easier for companies to invest. The Ecovis experts explain the new regulations.

Increases to SMIG and SMAG in two phases

Decrees nos. 419 and 420 of 9 July 2024, provide for a gradual increase in the SMIG and the SMAG. The first phase applies retroactively to 1 May 2024, while the second phase will take effect from 1 January 2025:

• SMIG for monthly salaried employees:
  • 48-hour regime: TND 528.32 (4 Tunisian dinar (TND) = approx. 1 EUR)
  • 40-hour regime: TND 448.24
• SMAG for agricultural workers:
  • Daily wage: TND 20.32
  • With technical bonus: up to TND 22.36 dinars for skilled workers.

Creation of an unemployment insurance fund

Article 17 of the 2025 Finance Act introduces a 1% increase in social security contributions to fund a new unemployment insurance fund:

• General regime: Increases from 25.75% to 26.75% (17.07% employer contribution and 9.68% employee contribution).
• Fully exporting companies: Increases from 25.25% to 26.25%.

Tax, social, and customs amnesties

Several amnesties have been announced:

• Social amnesty: Penalties for late payment of social security contributions will be waived, provided that debts are settled before 31 March 31 2025.
• Tax amnesty: Total reduction of late payment penalties for tax returns filed by 20 June 2025, subject to payment of the principal tax.
• Customs amnesty: Applicable to offenses detected before 1 December 2024, with staggered payment conditions until 1 January 2026.

Are you affected by the complexity of Tunisia's 2025 economic reforms? We will help you navigate the new tax laws, labour regulations and investment incentives.

Khalil Sabbagh, Managing Partner, ECOVIS KDH Partners, Tunis, Tunisia

New corporate tax rates

Starting in 2025, companies will have to apply the new corporate tax rates to their 2024 profits:

• 20% for the majority of sectors.
• 40% for banks, financial institutions (excluding payment institutions), and insurance and reinsurance companies.

Tax exemption for new businesses

Article 33 of the 2024 Finance Act exempts companies created in 2024 and 2025 from income tax and corporate tax for a period of four years. 2025 will be the last year to benefit from this tax advantage.

New electronic procedures and cheques

• Withholding tax certificates: From 1 January 2025, taxpayers will be required to use a dedicated electronic platform to prepare certificates.
• Cheque regulations: From 2 February 2025, old cheque formats will no longer be valid, in accordance with Law No. 2024-41.

For further information please contact:

Khalil Sabbagh, Managing Partner, ECOVIS KDH Partners, Tunis, Tunisia
Email: khalil.sabbagh@ecovis.tn