TaxNewsFlash-Africa

October 6, 2009
No. 2009-10
HOME

 CONTACT US     
 

Tunisia: New Rules Intended to Promote Offshore Financial Activities

In Tunisia, a new legal and tax framework relating to offshore financial activities provided to non-residents is effective 1 January 2011. The new regime was approved in late July 2009, followed by publication of the rules in the official journal (Journal Officiel de la République Tunisienne, 14 August 2009, no.65).

In general, the new rules relate to all financial services that can be provided to non-residents by banks, investment funds, portfolio management companies, or insurance companies. The main points of the new rules are as follows:

  • The new regime introduces a degree of flexibility for the establishment and operation of banks, investment funds, portfolio management companies, or insurance companies in Tunisia. These entities can be organized as a société anonyme under Tunisian law or as a branch of a legal entity, with its registered office abroad.

  • The minimum capital required for setting up these financial services entities in Tunisia is less than the amount required for these types of establishments in other countries in the region:
    • Banks—the minimum capital requirement is 25 million dinars*
    • Insurance companies—10 million dinars
    • Investment funds—7.5 million dinars
    • Portfolio management companies—250,000 dinars

* As of 6 October 2009: 1 dinar = € 0.525; 1 dinar = US $0.774

The new rules also allow banks, investment funds, portfolio management companies, or insurance companies to offer certain services to residents of Tunisia. For example, the new measures allow for the collection of deposits from Tunisian residents in dinars (with a ceiling to be set later), allow for the grant of long-term loans, and permit the financial entity to develop payment methods for Tunisian residents.

With regard to tax benefits under the new rules, non-resident financial service providers may realize the following tax advantages:

  • The corporate income tax rate is 10% of the amount of profits derived from transactions with non-residents and received as from 2011.

  • There is a tax exemption on income generated by deposits in foreign currencies and deposited by non-residents.

  • Relief from withholding tax is provided for interest paid on loans in foreign currency to non-residents not established in Tunisia.

Non-resident financial service providers are not subject to requirements to repatriate their income or profits from abroad, and they may benefit from freedom of currency exchange rules insofar as it concerns transactions with non-residents.

For more information, contact a tax professional with Fidal Direction Internationale* in Paris:

Maya Kellou, +33.1.55.68.17.62, mkellou@fidalinternational.com

Mohamed Mahjoubi, +33.1.55.68.16.53, mmahjoubi@fidalinternational.com

*Fidal is a French law firm that is independent from KPMG and its member firms.
 

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

© 2009 KPMG Services (Proprietary) Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in TaxNewsFlash-Africa is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to US-KPMGWNT@kpmg.com. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 2001 M Street NW, Washington, DC 20036-3310.

To unsubscribe from TaxNewsFlash-Africa, reply to US-KPMGWNT@kpmg.com and type ‘TaxNewsFlash Unsubscribe' in the subject line, then click on the SEND button.

 

Privacy | Legal