Tunisia’s Tax Regime: A Gateway for Chinese Investors
Setting up a legal entity
Oct 4, 2025
Tunisia’s Tax Regime: A Gateway for Chinese Investors
Tunisia offers a compelling environment for Chinese investors seeking to expand into North Africa and the broader MENA region. With a strategic location, skilled workforce, and robust legal framework, Tunisia presents numerous opportunities for foreign direct investment (FDI). This article delves into the key aspects of Tunisia's tax regime that are particularly relevant to Chinese investors.
▌Legal Framework for Foreign Investment
Tunisia has established a conducive legal environment for foreign investors through several key laws:
Investment Law No. 2016-71: This law aims to promote investment by enhancing the competitiveness and export capacity of the national economy, fostering technological development, creating jobs, and achieving balanced regional development.
Tax Incentives Law: Complementing the Investment Law, this legislation provides various tax incentives to encourage investment in Tunisia.
These laws collectively aim to attract foreign capital, including from China, by offering favorable conditions for investment.
▌Corporate Tax Rates and Incentives
Tunisia's corporate tax regime is designed to attract foreign investment, with specific provisions beneficial to Chinese investors:
Corporate Income Tax (CIT): As of 2025, the standard CIT rate is 20%. However, companies established in 2024 and 2025 are exempt from income tax for a period of four years, as per Article 33 of the 2024 Finance Act.
Withholding Taxes: Payments made to non-Tunisian tax residents are subject to a 15% withholding tax. However, this rate may be reduced under the provisions of Double Taxation Treaties (DTTs).
Tax Credits and Incentives: Tunisia offers various tax credits and incentives to promote investment, particularly in sectors such as renewable energy, technology, and high value-added products.
▌Double Taxation Treaty with China
Tunisia and China have established a Double Taxation Treaty (DTT) to avoid the risk of double taxation and prevent fiscal evasion with respect to taxes on income. The DTT provides mechanisms for the allocation of taxing rights between the two countries, ensuring that income is not taxed twice and offering relief through tax credits or exemptions.
▌Investment in Strategic Sectors
Tunisia encourages investment in specific sectors that align with its development goals:
Renewable Energy: Tunisia aims to produce 30% of its electricity from renewable sources by 2030, offering opportunities for investment in solar and wind energy projects.
Technology and Innovation: The government promotes investment in high-tech industries, providing incentives for research and development activities.
Infrastructure and Manufacturing: Tunisia seeks to enhance its industrial base, offering incentives for investment in manufacturing and infrastructure projects.
▌Opportunities for Chinese Investors
Chinese investors can leverage Tunisia's favorable tax regime and strategic location to expand their operations in North Africa. Key opportunities include:
Establishing Regional Headquarters: Tunisia's investment laws allow for the establishment of regional headquarters, providing a gateway to the MENA region.
Public-Private Partnerships (PPPs): The government encourages PPPs in infrastructure projects, offering opportunities for collaboration in sectors such as transportation, energy, and telecommunications.
Industrial Zones: Tunisia offers various industrial zones with infrastructure and incentives tailored for foreign investors.
Tunisia's tax regime, coupled with its strategic location and favorable investment laws, presents a promising opportunity for Chinese investors seeking to expand into the MENA region. By understanding and leveraging the available incentives and frameworks, Chinese businesses can establish a strong foothold in Tunisia and capitalize on the growing economic ties between the two countries.
If you require further information or assistance in navigating the investment landscape in Tunisia, feel free to reach out.
1st of October ; Happy National Day, China!
Today, we celebrate the remarkable achievements and continuous growth of China.
At Luca Pacioli, we are proud of our 38 years of experience and our long-standing collaboration with Chinese companies operating in Tunisia, including Sinomach, CMACE, Tiens Group, TBEA, CNBC, and Wylton. Over the years, we have supported their operations, business development, and financial compliance through trusted expertise in audit, tax, and advisory services.
We deeply value these partnerships and remain committed to strengthening the bridge between China and Tunisia, fostering mutual growth and success.
If you would like to learn more about investing or expanding your business in Tunisia, feel free to reach out.
WeChat ID: lucapaciolitunisia
WeChat Number: +21629310433
Here is a link to our direct WhatsApp: https://wa.link/u60tk9
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