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TUNISIA
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Tunisia Payroll and Employer of Record: Employment Contracts
Work Permits
- Citizens of various nations, notably the United States and European Union (EU) member states, can visit Tunisia without a visa for up to 90 days. Foreign nationals who are not citizens of visa-exempt nations must get a short-stay visa for stays of less than 90 days, such as business trips and conferences.
- Any foreign individual intending to stay in Tunisia for more than 90 days must apply for a long-stay visa and get a temporary residency permit upon arrival, including nationals of visa-exempt countries.
- To remain compliant, everyone who intends to work in Tunisia must have a work permit. All of this is in addition to needing a business visa. The year-long validity of the work permit is limited. It must be renewed when the work contract is renewed.
PAID TIME OFF
Annual Vacation
- An employee is entitled to at least 21 days of paid yearly leave in a row. National and religious holidays are not taken into account. Collective agreements must include at least one day of paid annual leave for every 17 days the employee worked or was entitled to be paid.
- Employees should be entitled to paid time off on national and officially recognized public holidays.
Sick
The amount of sick days that an employee may take in Tunisia is not specified. Employees must, however, notify their employer within 48 hours of being unwell and produce a medical certificate. Employees who are eligible get social security benefits while on sick leave.
Maternity
- The overall length of maternity leave should be at least 14 weeks.
- During maternity leave, a worker’s income should be at least two-thirds of his or her previous compensation.
Paternity
Fathers are entitled to one day of leave (in the private sector) or two days (in the public sector), which must be taken within seven days of the delivery.
Family
N/A
National Holidays
Tunisia has a total of 12 public holidays which are paid.
Other Paid Time Off
N/A
STATUTORY EMPLOYEE BENEFITS
Unemployment
Individuals with an open-ended contract who become involuntarily jobless owing to economic or technological causes are eligible for unemployment payments in Tunisia. Tunisia’s unemployment program includes unemployment insurance and unemployment aid. They can be termed unemployment insurance since the worker must contribute to the CNSS for three consecutive years within a given firm to be eligible. However, the plan includes certain features of unemployment support, as the maximum period of the unemployment benefit is 12 months, regardless of the length of individual contributions (once it is more than 3 years). The unemployment plan contains no nationality requirements.
Workers Compensation
- Work injuries are classified into four types: (i) permanent entire incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) lethal injury resulting in worker death. Any accident that occurs while traveling to and from work is considered a work injury.
- In the event of permanent disability, the insured worker is entitled to yearly earnings multiplied by 0.5 times the assessed degree of disability from 15% to 50%, and 1.5 times for the remainder higher than 50%. Benefits are calculated using yearly wages ranging from the legal annual minimum wage to six times the legal annual minimum pay.
- After receiving benefits for five years for an assessed degree of impairment of 35, the permanent disability pension can be paid as a lump sum.
- The lump payment is computed in accordance with a legal schedule. A lump amount of 150 percent of the yearly earnings used to compute benefits multiplied by the evaluated degree of disability is awarded for an assessed degree of disability of 5% to 15%.
Social Security
- In most cases, the pensionable age cannot be set higher than 65 years of age. If the retirement age is raised to over 65, it must take into account “the working capabilities of senior people” as well as “demographic, economic, and social conditions, which must be scientifically shown.” Pensions can be calculated as a percentage of either the minimum wage or the earned pay.
- When the breadwinner dies, the spouse and children are entitled to a payment calculated as a proportion of the minimum wage or the earned wage. This must be at least 40% of the reference wage.
- For a short time, the jobless are entitled to unemployment benefits calculated as a percentage of the minimum wage or a percentage of their earned pay.
- Invalidity benefits are paid when a covered person is unable to work for a living before reaching the regular retirement age owing to a non-occupational chronic illness that causes sickness, injury, or disability. The Invalidity Benefit must be at least 40% of the reference pay.
Retirement
The law establishes an old-age pension, an early pension, and a partial pension. A worker must be 60 years old with at least 120 months (10 years) of contributions or 50 years old (in the event of hazardous job) with at least 180 months (15 years) of contributions to be eligible for an old-age pension. The old-age pension is calculated as 40% of the insured’s average earnings in the ten years preceding retirement plus 0.5 percent of average earnings for each three-month period of contributions beyond 120 months. The pension varies from 66.7 percent to 80 percent of the insured’s average wages, up to six times the legal monthly minimum wage. At the age of 55, a worker is eligible for an early pension if he or she has contributed for at least 360 months.
The early pension amount is lowered by 0.5 percent for each quarter (2 percent for each year) if the pension is taken before the age of 60. A partial pension is paid to an insured worker who has contributed for 60 to 119 months. The amount of the pension is lowered based on the number of quarters of contributions; if the insured has fewer than 60 months of contributions, a lump payment of the value of the insured’s contributions is provided at retirement. The partial pension is equal to at least 50% of the legal monthly minimum pay.
Health
Medical Aid is a private option and is based on an employee voluntary basis to sign up or for the employer to offer it.
PRIVATE EMPLOYEE BENEFITS
Workers Compensation
N / A
Retirement
N / A
Health
Private healthcare is available in Tunisia.
Insurance
Private life insurance is available in Tunisia.
PERSONAL INCOME TAX
Tax Year
Tax year runs from January 1st to December 31st.
Tax Tables
Taxable Income | Rates of Taxes |
0 – 5000 | 0% |
5001 – 20 000 | 26% |
20 001 – 30 000 | 28% |
30 001 – 50 000 | 32% |
50 001 + | 35% |
Taxation Method
Tunisia uses a progressive tax system.
Double Taxation
Tunisia has multiple double taxation agreements.
Residence Requirements
According to Tunisian common law, an individual is regarded to be a Tunisian resident if one of the following conditions is met:
- The individual’s primary residence (domicile) is in Tunisia.
- The individual’s primary residence is outside of Tunisia, but he or she visits the country on a continuous or discontinuous basis for one or more periods totalling at least 183 days every calendar year.
According to the DTTs concluded by Tunisia, when an individual is considered to be a resident of both Tunisia and another state signatory to a DTT by simultaneous application of domestic tax laws of both Tunisia and another state signatory to a DTT, the provisions of the DTT relating to the criteria for determining tax residency will prevail.
Indeed:
- The individual is only considered a tax resident of the state in which he or she has a permanent residence (habitual residency/dwelling).
- If an individual has a permanent home in both jurisdictions, he or she is only considered a resident of the state with which he or she has the closest personal and economic ties (centre of vital interests).
- If the state in which the individual’s center of vital interests cannot be ascertained, or if neither state has a permanent residence accessible, the individual is regarded to be a resident exclusively of the state in which he or she spends the most time.
Payroll Calendars
Wages are normally paid on the final working day of the month, according to the payroll cycle.
Rebates & Tax Credits
Information is not clearly available online.
Health Insurance
- The “Caisse Nationale d’Assurance Maladie” manages health insurance. Tunisia’s welfare system is mandatory for the whole population. It varies depending on the socio-professional category.
- The insured’s spouse and minor children are eligible for Social Security payments and, as a result, health insurance.
- To be eligible for Social Security payments, you must have worked at least 50 days in the previous two quarters or at least 80 days in the previous four quarters.
Unemployment
Individuals with an open-ended contract who become involuntarily jobless owing to economic or technological causes are eligible for unemployment payments in Tunisia. Tunisia’s unemployment program includes unemployment insurance and unemployment aid. They can be termed unemployment insurance since the worker must contribute to the CNSS for three consecutive years within a given firm to be eligible. However, the plan includes certain features of unemployment support, as the maximum period of the unemployment benefit is 12 months, regardless of the length of individual contributions (once it is more than 3 years). The unemployment plan contains no nationality requirements.
Social Security
If the retirement age is raised to over 65, it must take into account “the working capabilities of senior people” as well as “demographic, economic, and social conditions, which must be scientifically shown.” Pensions can be calculated as a percentage of either the minimum wage or the earned pay. When the breadwinner dies, the spouse and children are entitled to a payment calculated as a proportion of the minimum wage or the earned wage. This must be at least 40% of the reference wage. For a short time, the jobless are entitled to unemployment benefits calculated as a percentage of the minimum wage or a percentage of their earned pay.
Invalidity benefits are paid when a covered person is unable to work for a living before reaching the regular retirement age owing to a non-occupational chronic illness that causes sickness, injury, or disability. The Invalidity Benefit must be at least 40% of the reference pay.
PAYROLL ELEMENTS
Income
Salary, earnings, bonuses, overtime pay, taxable benefits, allowances, and certain lump sum perks are examples of remuneration (revenue from employment). Profits or losses made by a company or trade. Income or profits derived from an individual’s status as a trust beneficiary.
Bonuses
Employers are not compelled to offer incentives as part of their employees’ remuneration packages, although performance-based bonuses are widespread.
Allowances
- If the employee receives an allowance, the amount of the allowance should be utilized to calculate the advantage value (i.e. the rent indicated in a rental contract, the school money actually paid).
- In the case of a business automobile, the value is either the lease price or, if the car is held by the firm, TND 100 per month, which is the value of the allowance paid to government officials and employees in state-owned enterprises.
Benefits in Kind
The benefits in kind are appraised at their true worth, which is the employer’s actual expense. Transportation benefits are free from WHT for enterprises formed in regional development zones.
Investment Income
Capital gains arising from the sale of immovable properties (land and buildings) owned in Tunisia that are specifically specified by law, as well as shares in real estate civil partnerships, are subject to PIT at the following rates:
- 10% in circumstances when the property was sold after a five-year term beginning with the date of acquisition.
- 15% in situations where the property was sold before the end of a five-year detention period beginning on the date of acquisition.
- The above-mentioned regulation applies to both residents and non-residents.
- Capital gains generated from the disposal of shares held in the capital of Tunisian-resident corporations are taxed in Tunisia as follows for non-resident individuals:
- In circumstances where the shares are listed on the Tunisian Stock Exchange: If the shares were bought before January 1, 2011, capital gains will not be taxed in Tunisia.
- Capital gains will be taxed if the shares were purchased after January 1, 2011 and sold before the end of the year following the year in which they were purchased. Otherwise (i.e., if the shares are sold after the end of the year succeeding the one in which they were bought), capital gains are not taxed.
- Capital gains arising from the disposal of shares by non-Tunisian investors are not taxed in circumstances where the shares are not listed on the Tunisian Stock Exchange.
- Capital gains generated from the disposal of non-listed shares by non-Tunisian resident people are taxed in Tunisia if the shares are not registered on the Tunisian Stock Exchange.
- Capital gains arising from the sale of shares held in the capital of Tunisian-resident firms are considered securities income and are subject to income tax at a rate of 10% for resident people.
- The taxable basis is established by deducting TND 10,000 from the difference between the selling and acquisition prices.
- If several sales operations are completed during the same fiscal year, and some of them result in capital losses while others result in capital gains, the taxable base is calculated as the difference between the total realised capital gains and total realised capital losses for the year, less TND 10,000.
- For non-residents, the tax will be collected through WHTs at a rate of 10% on the basis of realized capital gains, with a maximum of 2.5 percent of the selling price if the seller is an individual.
- However, if the seller realizes capital gains and capital losses from the disposal of shares during the same fiscal year, the seller may choose to file an annual tax return with the Tunisian tax authorities and pay the due tax at a rate of 10% on the basis of the balance between the realized capital gains and the realized capital losses, less TND 10,000.
Retirement Funding
The law establishes an old-age pension, an early pension, and a partial pension. A worker must be 60 years old with at least 120 months (10 years) of contributions or 50 years old (in the event of hazardous job) with at least 180 months (15 years) of contributions to be eligible for an old-age pension. The old-age pension is calculated as 40% of the insured’s average earnings in the ten years preceding retirement plus 0.5 percent of average earnings for each three-month period of contributions beyond 120 months. The pension varies from 66.7 percent to 80 percent of the insured’s average wages, up to six times the legal monthly minimum wage. At the age of 55, a worker is eligible for an early pension if he or she has contributed for at least 360 months.
The early pension amount is lowered by 0.5 percent for each quarter (2 percent for each year) if the pension is taken before the age of 60. A partial pension is paid to an insured worker who has contributed for 60 to 119 months. The amount of the pension is lowered based on the number of quarters of contributions; if the insured has fewer than 60 months of contributions, a lump payment of the value of the insured’s contributions is provided at retirement. The partial pension is equal to at least 50% of the legal monthly minimum pay.
Health Insurance
Senegal’s public health care system includes a Social Security agency, however health care and employment are not included. As a result, if a person is unemployed but wishes to obtain public healthcare, they can use Welfare services, which encompass primary care.
Risk Insurance
N/A
Taxable Income
- Senegalese tax citizens are required to pay taxes on their international income.
- Salary income is always taxed in Senegal, as long as the job is done there or the company is based there.
- The personal income tax (PIT) is a progressive levy levied on individuals’ taxable income, including net salaries.
Allowable Deductions
Individual rents are subject to a 5% WHT, which must be withheld at the source by the lessee.
The WHT on rent does not apply in the following circumstances:
- The rent is less than XOF 150,000 per month.
- If the rent is subject to CIT, it is paid to a firm (the true beneficiary).
- Individuals who pay rent to a real estate agent, which remits the money to the owner.
- This WHT must be paid to the tax authorities within 15 days of the month of rent payment. A quarterly and yearly recapitulative declaration must also be filed.
- Tax is withheld at the source on the following income (subject to DTTs and specified exemptions):
- Dividends are 10%. When the firm pays the dividend, the WHT should be applied. A complicated system of quarterly instalments payments exists.
- Bond interest rate: 13% The withheld amount must be paid in four equal instalments.
- Deposits or guaranteed interest on Senegalese bank accounts: 8%. The bank pays the amount withheld before the 15th day of the month following the month of payment or posting.
- Other income, most notably interest on loans: 16%. The amount withheld is paid within 15 days after the end of the month in which it was paid or posted.
PAYROLL TAXES AND EMPLOYER CONTRIBUTIONS
Payroll Taxes
The payroll tax is 3% of the taxable gross salary.
Unemployment
Individuals with an open-ended contract who become involuntarily jobless owing to economic or technological causes are eligible for unemployment payments in Tunisia. Tunisia’s unemployment program includes unemployment insurance and unemployment aid. They can be termed unemployment insurance since the worker must contribute to the CNSS for three consecutive years within a given firm to be eligible. However, the plan includes certain features of unemployment support, as the maximum period of the unemployment benefit is 12 months, regardless of the length of individual contributions (once it is more than 3 years). The unemployment plan contains no nationality requirements.
Social Security
- Employers contribute to social security, with a yearly contribution limit of XOF756 000. The rate for family benefits is 7%, while the rate for industrial accidents ranges from 1% to 5%, depending on the industry.
- Contributions to national retirement funds are made by both the employer (60 percent) and the employee (40 percent) (40 percent ). The general scheme’s contribution rate is 14 percent, with an annual cap of XOF3.072 million. The contribution rate for the executives’ program is 6%, with a yearly cap of XOF9.216 million. Both plans need executive staff to contribute.
Workers Compensation
Work injuries are classified into four types: (i) permanent entire incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) lethal injury resulting in worker death.
In the event of permanent complete incapacity/disability, compensation equal to 100% of a covered worker’s average wages is awarded for the 12 months preceding disability.
The amount of compensation in the case of permanent partial disability is determined by the evaluated degree of disability. A lump sum pension is paid if the assessed disability is less than 10%. In the event of a temporary disability, compensation is paid at the rate of 50% of the worker’s wages in the previous month. This payment is only available for the first 28 days of temporary incapacity. If the disability continues, 66.7 percent of the previous month’s wages (prior to the onset of the ailment) are paid until the worker’s full recovery or certification of permanent disability. Dependents (widow/widower/minor children) get a survivors’ pension in the event of a fatal accident. A widow or widower receives 30% of the monthly pension that a dead worker got or was entitled to receive. When a widow or widower remarries, her pension ends.
ADMINISTRATION
Income
- Any people subject to PIT must file a tax return for all income (e.g., salary, moveable assets) obtained during the previous year, unless wages are the only source of income for the employee and those earnings have been lawfully withheld by the employer during the year.
- Employers withhold social security payments and PIT from an individual’s earnings on a monthly basis, based on total remuneration received, including fringe perks and bonuses.
Payroll Taxes
Non-resident employees must pay a 20% flat tax on their gross income. As an employer, you must register your new hires with the Tunisian social security system (CNSS). Then you must give 16.57 percent of your gross revenue, while workers contribute 9.18 percent of their gross income.
Unemployment
Individuals with an open-ended contract who become involuntarily jobless owing to economic or technological causes are eligible for unemployment payments in Tunisia. Tunisia’s unemployment program includes unemployment insurance and unemployment aid. They can be termed unemployment insurance since the worker must contribute to the CNSS for three consecutive years within a given firm to be eligible. However, the plan includes certain features of unemployment support, as the maximum period of the unemployment benefit is 12 months, regardless of the length of individual contributions (once it is more than 3 years). The unemployment plan contains no nationality requirements.
Social Security
- In most cases, the pensionable age cannot be set higher than 65 years of age. If the retirement age is raised to over 65, it must take into account “the working capabilities of senior people” as well as “demographic, economic, and social conditions, which must be scientifically shown.” Pensions can be calculated as a percentage of either the minimum wage or the earned pay.
- When the breadwinner dies, the spouse and children are entitled to a payment calculated as a proportion of the minimum wage or the earned wage. This must be at least 40% of the reference wage.
- For a short time, the jobless are entitled to unemployment benefits calculated as a percentage of the minimum wage or a percentage of their earned pay.
- Invalidity benefits are paid when a covered person is unable to work for a living before reaching the regular retirement age owing to a non-occupational chronic illness that causes sickness, injury, or disability. The Invalidity Benefit must be at least 40% of the reference pay.
Workers Compensation
- Work injuries are classified into four types: (i) permanent entire incapacity, (ii) permanent partial incapacity, (iii) temporary incapacity, and (iv) lethal injury resulting in worker death. Any accident that occurs while traveling to and from work is considered a work injury.
- In the event of permanent disability, the insured worker is entitled to yearly earnings multiplied by 0.5 times the assessed degree of disability from 15% to 50%, and 1.5 times for the remainder higher than 50%. Benefits are calculated using yearly wages ranging from the legal annual minimum wage to six times the legal annual minimum pay.
- After receiving benefits for five years for an assessed degree of impairment of 35, the permanent disability pension can be paid as a lump sum.
- The lump payment is computed in accordance with a legal schedule. A lump amount of 150 percent of the yearly earnings used to compute benefits multiplied by the evaluated degree of disability is awarded for an assessed degree of disability of 5% to 15%.
Statutory Benefits
Tunisia has public health care as well as national social security.
Employee Benefits
Certain benefits are mandatory to offer employees in Tunisia. These are: 12 public holidays, at least 21 days of paid leave and at least 14 weeks of paid maternity leave.
LEGISLATION
- Tunisian Constitution of 2014
- Labour Code 1966, last amended in 2017
- Penal Code, 2005
- Framework Collective Agreement 1973
- Criminal Code 2005
- Decree No. 2000-98 on Prohibition of Hazardous Occupations or Activities for Children
- Law on Education and Schooling, 2002
- Law No. 2000-17
- Decree No. 86-433 of the Protection against Ionizing Radiations
- Act No. 83-112
- Act No. 60/30 of the Organisation of Social Security Schemes
- Act No. 81-6 of Organizing Social Security Schemes in Agriculture
- Decree No. 3230 of 2006
- Act No. 58 of 2006
- Decree No. 2011-317 of 26 March 2011
STATUTORY BODIES
- The Independent High Authority for Elections (ISlE),
- The Audiovisual Communication Authority (ICA),
- The Human Rights Authority (IDH)
