Transfer Pricing in Tunisia – Tax Obligations 2025 | Luca Pacioli

1. Transactions with Non-Resident Related Parties

As per Article 48 septies of the Code of Income Tax on Individuals and Corporate Income Tax (CIRPPIS), transactions between related parties, whether resident or established in Tunisia, and non-resident related parties must adhere to the arm's length principle.

Sanction: Re-integration of artificially transferred profits into the taxable income.

Legal Reference: CIRPPIS, Art. 48 septies

2. Filing and Documentation Thresholds

Effective from the Finance Law 2021, companies with an annual turnover (excluding VAT) equal to or exceeding TND 200 million and engaging in transactions with non-resident related parties exceeding TND 100,000 must submit an annual transfer pricing declaration.

Legal Reference: Finance Law 2021, Art. 15

3.Transfer Pricing Methods Approved in Tunisia

In Tunisia, the following transfer pricing methods are officially recognized, in line with OECD guidelines:

1. Comparable Uncontrolled Price (CUP) Method – comparing prices of similar transactions between independent parties.

2. Resale Price Method (RPM) – determining the price based on the resale margin to an independent party.

3. Cost Plus Method – applying a markup to the costs incurred by the supplier for the goods or services.

4. Transactional Net Margin Method (TNMM) – examining net profit relative to an appropriate base (costs, sales, or assets).

5. Profit Split Method – dividing profits from transactions among related parties based on their contributions.

Note: The Tunisian tax authorities expect taxpayers to use the method that best reflects the arm’s length principle for each specific transaction.

Legal Reference: CIRPPIS, Art. 48 septies and Common Notes N°11/2020

4. Documentation Requirements

Affected companies are required to maintain comprehensive transfer pricing documentation, including a master file and local file, to justify their transfer pricing policies for cross-border transactions :

• A Master File containing standardized information relating to all members of the multinational group, structured to provide a global overview of the multinational group;

• A Local File specifically referring to the material transactions of the local entity;

• A Country-By-Country Report (CbCR), filed by the ultimate parent entity of the multinational group, providing information on the global allocation of profits of the multinational enterprise and the taxes it pays, along with certain indicators regarding the location of the activities of the multinational group.

  
  

• Legal Reference: CIRPPIS, Art. 48 septies

5. Advance Pricing Agreements (APA)

Companies may enter into Advance Pricing Agreements with the tax administration to agree on transfer pricing methodologies for future transactions over a period of 3 to 5 years.

Legal Reference: CIRPPIS, Art. 35 bis

6. Relevant Common Notes

• Common Note No. 11/2020: Provides guidance on aligning domestic legislation with international transfer pricing standards.

• Common Note No. 12/2020: Details the procedures for submitting the annual transfer pricing declaration.

Sources: Common Notes Nos. 11/2020 and 12/2020

Conclusion

Compliance with Tunisia's transfer pricing regulations is crucial to avoid potential sanctions. Companies meeting the specified thresholds should ensure timely submission of the required documentation.

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