Republic of Tunisia

Tunisia operates a progressive income tax system in which individuals are taxed at increasing rates ranging from 0% to 40% across eight tax brackets as their taxable income rises. Residents are taxed on Tunisian-sourced income and foreign-sourced income that has not already been taxed in the source country, subject to any applicable double-tax treaty, while non-residents are taxed only 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. The 10% deduction is calculated on salary after deducting mandatory Tunisian social security contributions. Employers are required to withhold income tax at source through a monthly withholding-at-source system and remit it 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 special 20% tax on gross remuneration for certain non-residents working in the country for six months or less per year, as well as for specific foreign employees in sectors such as exporting companies, oil and gas, or those operating in free trade zones.

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, consisting of 9.18% to the Caisse Nationale De Sécurité Sociale (CNSS) and 0.5% to the Insurance Fund Against Loss of Employment for Economic Reasons, introduced from 1 January 2025. Employers contribute 17.07% to the CNSS, which includes the 0.5% loss of employment for economic reasons insurance contribution. These contributions fund various benefits, including pensions, illness and maternity coverage, family allowances and other statutory social protection and occupational health and safety programmes, including the Fonds spécial de l’État (which should not be described as an occupational health and safety fund). 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 classification. Beyond social security, employers are generally required, subject to applicable sectoral exemptions, 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 (Fonds de Promotion des Logements Sociaux – FOPROLOS) is also payable by employers. Combined, these obligations bring the typical employer payroll burden to around 20% to 25% or higher of gross salary, depending on the occupational risk classification, business sector and applicable exemptions.

Payroll tax reporting and payment obligations follow a structured monthly, quarterly and annual schedule. Employers must file and pay personal income tax withholdings, TFP and the Social Housing Promotion levy through the monthly tax return by the 20th of the month following the salary payment via the DGI’s online platform (teledeclaration.tn). Reporting and payment of social security contributions, including the contribution to the Insurance Fund against Loss of Employment for Economic Reasons and occupational injury contributions to the CNSS, are generally quarterly for private-sector non-agricultural employers. The salary declaration and corresponding contributions are normally due by the 15th day of the month following the end of the quarter. Additionally, employers are required to submit an annual withholding tax summary (État Annuel des Salaires) by 30 April of the following year, summarising all income paid and taxes withheld. Timely and accurate reporting is essential to remain compliant with Tunisian tax and labour regulations.

Employers are required to maintain accurate and detailed payroll records to ensure compliance with tax and social security regulations. These records should 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 on unpaid amounts and penalties for late declarations. Additional fines may apply for underreporting or non-submission of required information. In serious cases, employers may also face tax audits, backdated assessments and reputational risk.