ECOVIS Grosclaude & Partners

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

Tax for non-domicile digital services providers in Peru: Oversight campaign launch

The Peruvian Tax Administration (SUNAT) has officially initiated a 2025 tax oversight campaign targeting non-resident companies offering digital services in Peru. The campaign focuses on ensuring compliance with Peruvian tax regulations, particularly among digital streaming platforms operating in the country.

Key considerations for non-domiciled digital services providers

1. Compliance with VAT regulations: Non-resident providers offering digital services in Peru are expected to comply with VAT requirements established under Legislative Decree No. 16744, effective from 1 December 2024. This includes registering, declaring, and remitting the 18% VAT on applicable services.
2. Regulation of tax matters: Digital service providers should assess their current tax status in Peru. SUNAT has emphasised the importance of addressing any outstanding compliance matters promptly to avoid potential penalties.
3. Targeted platforms: Major platforms providing streaming services, cloud-based solutions, or other digital services should review their operational structures to ensure full alignment with Peruvian tax obligations.

We support you in assessing and correctly implementing your obligations under the updated multi-tax framework.

Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru

SUNAT’s enforcement strategy

• Audit campaigns: The current phase involves active audits and monitoring of businesses with significant operations or economic interests in Peru.
• Penalties for non-compliance: Companies found in violation of tax obligations may face fines, interest charges, or additional enforcement actions.

Remarks and recommendations

Companies affected by the new VAT rules should proactively contact and clarify with SUNAT any potential compliance issues. The Ecovis experts also recommend setting up and reviewing internal VAT declaration and remittance procedures to ensure accuracy and timeliness.

For further information please contact:

Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru
Email: octavio.salazar@ecovis.com.pe

M&A in Europe: Outlook 2024-2025

Following a slow year in 2023, the European market for mergers and acquisitions (M&A) experienced a significant rebound in 2024. Key factors contributing to this recovery included stabilised interest rates, a decline in inflation, and increased investor confidence.

Sectors such as technology, e-commerce and renewable energies are particularly benefiting from increased transaction activity. This reflects their continued attractiveness to investors, explain the Ecovis experts.

Regional insights into M&A in Europe

The following regional perspectives highlight key markets where M&A trends offer valuable lessons for business strategies. This helps to understand their economic context and implications for stakeholders.

• The UK market has witnessed a surge in M&A deals as businesses aimed to finalise transactions ahead of anticipated tax policy changes in early 2025.
• Germany’s M&A landscape has faced challenges due to sluggish economic growth and concerns about competitiveness, prompting an increase in distressed sales.
• In Central and Eastern Europe, Poland emerged as an investment hotspot due to favourable economic performance and EU funding boosts. Similarly, Czech businesses accelerated transactions in anticipation of upcoming tax reforms.

If you have any questions about M&A, please feel free to contact us.

Jan Slaby, Partner, ECOVIS Corporate Finance, Prague, Czech Republic

Key trends shaping 2025

Looking ahead, several trends are expected to shape the European M&A market:

1. Technological investments and ESG initiatives: Companies are focusing on digital transformation and sustainability, leading to increased investment in innovative and environmentally conscious projects. Our company is committed to smart solutions that align with these trends, supporting sustainable growth for our clients.
2. Creative deal structuring: In response to ongoing economic uncertainties, buyers and sellers are adopting more flexible and risk-averse transaction frameworks.

The overall sentiment in the European M&A sector remains cautiously optimistic. As businesses continue to adapt to evolving economic and regulatory landscapes, 2025 is expected to bring further opportunities for growth and strategic partnerships.

For further information please contact:

Jan Slaby, Partner, ECOVIS Corporate Finance, Prague, Czech Republic
Email: jan.slaby@ecovis.cz