Section 3 :
Direct taxes
§ 1. Features of the natural
person income tax
§ 2. Modes of imposition
§ 3. The determination of
the raw taxable income
§ 4. The different
categories of incomes
§ 1. Field of application of
the corporate tax
§ 2. Territoriality of the
corporate tax
§ 3. Tax rates to the
corporate tax
§ 1. Resolution of
divergences accounting-taxation
§ 2. The table of
determination of the fiscal result
§
1. The tax shields bound to the exploitation
§ 2. The tax credits to the
title of exonerated reinvestments
Section 3 :
Direct taxes
The direct taxes include the
natural person income tax (NPIT), the corporate tax (CT), the tax on
the real estate capital gain and the tax on the oil profits. The
system of direct imposition offers important possibilities of tax
shields.
The direct taxes and notably
the NPIT are recovered in an important proportion by way of
deduction at source.
Natural person incomes and
profits achieved by enterprises are submitted according to the legal
form of the achiever to:
- The NPIT (natural person
income tax) when the beneficiary of the income is a natural person
or when the exploitation has the form of an individual enterprise.
- The corporate tax when the
enterprise has the form of a society liable of the corporate tax (notably
societies to limited responsibility and public companies).
A third category of
enterprises is constituted by societies said fiscally transparent.
This category regroups notably partnership societies (societies in
collective name and societies in involvement) and civil societies
that are not submitted to the natural person income tax or the
corporate tax, but their partners are those imposed because of their
shared participation in results of the society.
Under-section
1. The natural
person income tax
The natural person income tax
possesses 9 features:
1) It is a tax that applies
to the natural persons.
2) It is a yearly tax.
3) It is a tax that
concern the
world income for resident natural persons. It only concern incomes of
Tunisian source for the non-resident natural persons usually in
Tunisia.
4) This tax applies on the
taxpayer's global gross income. But, although the income is globally
imposed by the regrouping of the different categories of incomes,
each category of income can have its own rules of determination.
The whole of categorical
incomes from which are deducted categorical deficits represents the
raw income. From this raw income, it is deducted a certain number of
loads which limits are defined by law, said common deductions, to
have the taxable global gross income.
5) The income tax is a
progressive tax. It includes rates by slice of income so that more
the income is raised, more the tax rate is high with a maximum
rate of 35% of the taxable income
.
6) The income tax is a
strictly personal tax. Thus, the married woman is imposed of
separated way of her husband. In the same way, the minor children
can, to the demand of family's chief, to be imposed of separated way
for incomes that they achieve, whatever is their nature.
7) The income tax is a
declarative tax. It is liquidated by the way of a yearly declaration
subscribed by the taxpayer and submissive to the right of
administration control.
8) The determination of the
income tax is governed by different modes that can result from
special regimes as the assessment of the income according to the
outside signs of wealth or the growth of wealth or also the
imposition of the real estate capital gain.
9) Some incomes are expressly
exonerated of income tax. They must, nevertheless, be mentioned in
the yearly declaration of incomes.
we distinguish between two
categories of taxpayers liable of the income tax:
1) People having their usual
residence in Tunisia that are submitted to an unlimited fiscal
obligation since they are taxable on the whole of their incomes of
Tunisian or foreign source (world income).
The imposition of incomes of
foreign source is, nevertheless, limited to incomes that have not
been submitted to the payment of the tax in the origin country of
the income on the
one hand, and provided the respect of the arrangements of the
different conventions of non double taxation concluded by Tunisia
with the other countries as well as the different exonerations
benefiting to incomes of export instituted by tax shields laws
on the other hand.
2) Persons that are
non-resident in Tunisia, but that achieve incomes of Tunisian
source, are submitted, provided the respect of arrangements foreseen
by the international fiscal conventions, to a fiscal imposition
limited to the only incomes of Tunisian source whose imposition is
expressly foreseen by the code of the NPIT and the CT .
The imposition of this
taxpayer category is generally reduced to a liberating tax deduction
at
source operated by the Tunisian debtor.
The global gross income
serving from basis to the tax is constituted by the surplus of the
gross earnings including the value of profits and advantages in
nature on loads and expenses done to the acquirement and the
conservation of the income.
It is possible to define 4
conceptual features of the taxable income:
1) the taxable income is a
global income:
It strengthens the totality
of different category incomes, achieved by a taxpayer. These incomes
accumulate incomes of all kind and whatever is their source i.e.
incomes of Tunisian source and incomes of foreign source.
Nevertheless, this principle
has many exceptions that result:
- of the international
conventions of non- double taxation;
- of the exoneration of
certain incomes or abatements operated on certain categories of
incomes;
- of the special regimes
applicable to certain incomes such the real estate capital gains of
individuals.
2) The taxable income is a
net income:
The income is net by category.
It is also net in its totality.
Categorical income
established according to the real mode is net because it is
determined by deducting from the raw receipts or raw incomes the
committed expenses or loads to acquire or to preserve this income.
When the deductible loads
exceed correspondent receipts or incomes, the situation clears a
fiscal deficit. The deficit cleared by a category of income is
imputed on other category profits.
The global net income takes
in consideration the deficit noted in one of income categories and
justified by the book-keeping. If the global income is
not sufficient for the fully operated ascription, the
remainder of the deficit is reported successively at the global
following year income until the third year inclusively.
In the same way, the deficit
coming from the regularly accounted amortizations but reputed
differed in deficit period can be reported without limitation in the
time.
In addition of deducted loads
at the stage of every income category for the determination of the
net income of this category, it is deducted from the strengthened net
income of the different categories of incomes a certain number of
loads said common which limits are enumerated by the law.
3) the taxable income is a
yearly income:
The taxpayer is imposed every
year on the totality of income achieved during the previous year.
Incomes imposed to the year
(n) are generally those achieved during the civil year (n-1).
Nevertheless, at the fiscal
view point, taxpayers can choose for certain categories of incomes
imposed according to the real mode, a date of fence of their
exercises other than the one of the end of the civil year.
Thus, the income serving of
basis to the tax corresponds to «the net profit achieved by every
subjected during the previous year, or during the period of twelve
months whose results served to the establishment of the last
balance, when this period doesn't coincide with the civil year».
However, the period of
reference for the determination of the taxable income corresponds
necessarily to the civil year for the following cases:
- Imposition according to the
forfeit of tax (ICP);
- Imposition of
non-commercial profits: real regime or option for the base forfeit
regime;
- Imposition of the
agricultural income according to the regime of the receipts surplus
on expenses.
4) The taxable income is an
available income:
The income is available when
it is perceived or put to the disposition of the beneficiary and
that its cashing don't depends just on the only will of this beneficiary.
The availability of the
income triggers the generating fact of its imposition to the natural
person income tax.
Thus, incomes put in payment
or to a taxpayer's disposition are reputed available, and
consequently, become taxable, although the taxpayer doesn't have
even taken possession of it, except if this taxpayer establishes
that facts entirely independent of his will put obstacle to the
drawing of the corresponding sums.
The principle of the
availability includes, nevertheless, many limitations. As an example,
the determination of the accountant and fiscal result of the
submissive enterprises according to the real regime takes in
consideration credit definitely acquired disregard their efficient
cashing.
In a different way, some
incomes become taxable only when they are effectively cashed or
carried to the credit of a current account opened to the name of the
beneficiary. For these incomes, the generating fact of imposition is
achieved the day of their cashing or their entry to the credit
of a current account even though the normal date of their term is previous. Such is for example the case:
- of the properties’
incomes when the taxpayer chooses imposition according to the mode
of the base forfeit. In this case, the basis of determination of the
income is constituted by «the raw receipts amount perceived by the
landlord» or the regime of the net receipts of expenses applicable
to incomes of non-structured lands;
- of investment capital
incomes that are taken in consideration in income related to the
year of their efficient cashing according to the article 35 of the
code of the NPIT and the CT that stipulates: «the income is
constituted by the raw amount of interests and all other products or
advantages that the creditor perceives during the year preceding the
one of imposition, to whatever period of time that they apply,
without distinction between those pertaining to the aforementioned
year and those paid by anticipation or by way of arrears»;
- of liberal profession
incomes when the taxpayer chooses imposition according to the mode
of the base forfeit. In this case, the basis of determination of the
income is constituted by «70% of their raw receipts achieved» ;
- Incomes of foreign source
not having been submitted to the tax in the country of origin that
becomes taxable in Tunisia when they are «perceived effectively
from abroad » or
carried to the credit of a current account.
The Tunisian taxation
distinguishes between 8 categories of incomes:
1 - the industrial and
commercial profits (ICP);
2 - profits of non-commercial
professions (NCP);
3 - profits of the
agricultural exploitation and fishing;
4 - treatments, wages,
indemnities, pensions and life annuities ;
5 - the properties’ incomes;
6 - incomes of investment
values;
7 – Investment capital
incomes;
8 - incomes of foreign source.
To these incomes, is added
the specific regime to the real estate capital gain of individuals.
(1)
The industrial and commercial profits are those achieved by
tradesmen, industrials and commercial service providers. Craftsmen
are integrated in the category of the ICP.
They are submitted according
to the real regime except for the eligible taxpayers to the two
types of forfeit: the simple forfeit and the optional forfeit.
The determination of the
fiscal result is made from the accountant result by the means of reinstatements or deductions in a table called table of
determination of the fiscal result.
Imposition according to the
real regime implies also the regular and complete bookkeeping in accordance with rules decreed by the law and
financial accounting standards.
Imposition according to the
real regime can clear a beneficiary result, as it can clear a
deficit one that can be imputed at the other categories of incomes
and in case of insufficiency, to be transferred forward to the
following years.
(2)
Non-commercial profits:
Are included in this category:
- the liberal professions;
- loads and offices whose
holders don't have tradesman's quality;
- all non-commercial works or
exploitations for profit.
Incomes related to the
category of the NCP are submitted to the tax according to two
regimes:
- The base forfeit regime;
- The real regime.
The rule for the NCP is the
determination of the professional profit by the difference between
gross earnings achieved during the civil year and loads required by
the exploitation related to the same year. However, interested
parties can opt, when deposing their declaration of the income tax,
for their imposition on the basis of an inclusive profit (forfeit of
base) equal to 70% of their raw receipt achieved i.e. their VAT
receipt included.
The real regime implies also
the regular and complete bookkeeping in accordance with
rules decreed by the law and financial accounting standards.
The choice to stand in real
regime is done on the initiative of the taxpayer and doesn’t
require any particular formality of option close to the fiscal
administration.
(3) The profits of
agriculture and fishing:
Are considered as operating
income of agriculture or fishing, incomes that the farming
possession exploitation procures either to owners exploiting
themselves, or to sharecroppers or others, as well as incomes coming
from fishing.
The agricultural profits are
determined according to three regimes:
- The base forfeit regime;
- The real regime;
- The simplified regime.
a) The base forfeit regime:
In the absence of bookkeeping, agriculturists and fishers are
submitted to the tax on the basis of an inclusive assessment
determined after consultation of experts of the domain and taking in
consideration of the speculation nature according to regions». Thus, it
is established every year, a base forfeit by category of culture (by hectare or by foot of tree, for example) and after ordering in
different regions according to the output in accordance the climatic
conditions of each regions.
The income so determined
presents the same features that base forfeits of the other
categories of incomes.
In practice, the General
Direction of Taxes proceeds annually in agreement with the Tunisian
Union of Agriculture and Fishing to the updating of the inclusive
tax schedules of the agricultural incomes.
b) The real regime: rules of
determination of the fiscal result according to the real
agricultural profit regime are the same that those decreed
concerning the ICP.
The real regime, resulting of
the taxpayer's simple choice requiring no gait of option close to
the fiscal administration, implies, nevertheless, a
regular and complete bookkeeping in accordance with rules decreed by
the law and financial accounting standards.
c) The regime of the
receipt surplus to expenses: The net income of the agricultural
or fishing exploitations can be constituted by the total receipt
surplus achieved during the civil year to expenses required by the
exploitation during the same year considering the stocks’ set.
This mode of determination of
the agricultural net income doesn't imply bookkeeping but simply the existence of pieces justifying
receipt and
pieces justifying expenses of exploitation.
4) Treatments, wages,
indemnities, pensions and life annuities
Are submitted to the income
tax as element of the global income:
- Treatments, wages,
emoluments, indemnities and other related advantages, and
- Pensions and life annuities.
a) Treatments and wages: This
category of income has only one mode of imposition: the base forfeit
calculated on the basis of the net income of obligatory social
restraint.
The taxable net income
related to treatments and wages is determined as follows:
+ Raw amount of
the income elements including perquisites
- (Minus) the obligatory
deductions done by the employer for the constitution of annuities,
retirement pensions or for the cover of obligatory regimes of social
security
=
Fiscal raw income (i.e. net of the obligatory social deductions)
- (Minus) the professional
expenses fixed inclusively to 10% of the net hang-over of the
obligatory social deductions
= Taxable net categorical
income
b) Pensions and life
annuities: This category of income has only one mode of imposition:
the base forfeit calculated on the basis of the raw amount of the
pension or annuity of which it is deducted an abatement of 25%.
The taxable net income
related to pensions and life annuities are determined as follows:
+ Raw amount of the pension
or the life annuity
- (Minus) 25% of the raw
amount
= Taxable net categorical
income
(equivalent to 75% of the raw
amount of the pension or the life annuity).
(5) The properties’
incomes : there are two categories of properties’ income:
- incomes coming from the
building renting,
- and the capital gain of
buildings and assimilated properties (called real estate capital
gain).
The tax on the real estate
capital gain, that is liberating of the direct tax, is owed on
capital gains of buildings according to the specific modes.
The properties’ incomes can
be submitted to the tax according to three regimes of imposition:
- The real regime.
- The regime of the partial
forfeit of base reserved to structured building incomes.
- The regime of the net
receipts applicable to incomes of non- structured
building.
a) The real regime : the
rules of determination of the fiscal result according to the real
regime of properties’ incomes are the same that those decreed
concerning industrial and commercial profits.
The real regime implies so
the regular and complete bookkeeping in accordance with
rules decreed by the law and the financial accounting standards.
The choice to stand to the
real regime is done at the initiative of the taxpayer and doesn’t
require any particular formality of option close to the fiscal
administration.
b) The regime of the partial
base forfeit applicable to structured building incomes: when not
determined according to the real regime that requires
a regular bookkeeping, the taxable income of built properties is
determined as follows:
a) + Receipts, VAT included
b) - 30% of the
receipt VAT
included as management loads, remuneration of the caretaker,
insurances and amortizations,
c) - Justified expenses of
repair and maintenance
d) - The acquitted tax
on structured buildings
= Taxable net income that is (a) - {(b) + (c) + (d)}
The taking into consideration
of
the rent, VAT included (that can concern only buildings given in
renting to professional use) for the determination of the taxable
base to income tax combined with discrimination concerning
imposition of rents to the VAT, depending on whether the landlord is
subjected by another way to the VAT or not creates a problem of
equality of treatment and fairness between taxpayers. Thus, it is
possible to ask about the conformity of the fiscal regime of
rent imposition to the VAT and consequently to the income tax (base
forfeit having for basis the rent VAT included) with the fundamental
rule of the fairness concerning fiscal imposition.
c) Regime of the net receipts
of expenses applicable to incomes of non-built lands : The
net income of rented non-built properties is valued by deducting
from the raw income the expense amount which is justified and
required by the production of this income as well as the acquitted
properties’ income tax on non-built lands.
Common remark to regimes,
other than real regime, applicable to the properties’ incomes: By
raw income, it is agreed to designate the raw receipts amount
perceived by the landlord.
These raw receipts include:
+ The amount of rents
effectively cashed including possibly the VAT on rents,
+ The amount of
renting royalties of the right of display and the concession of the right of
property or usufruct.
To these receipts it is
agreed :
to add: the amount of
expenses being normally incumbent upon the landlord but put, by
convention, to the tenant's load;
to deduct: the amount of
expenses supported by the landlord for the tenant's account (expenses
for account or loads coming back to tenant re-invoiced by the
landlord to the identical)
= Receipts serving as basis
for the calculation of the taxable base related to the properties’
incomes.
By expenses, it is agreed to
designate the effectively paid expenses.
Thus,
the affectation of incomes to years of assessment doesn't take
place, in these regimes’ context, according to the rule of the
engagement or the exposed expense, but according to the only
criteria of the cashing and the payment (cashing for receipts and
efficient payment for expenses).
(6) Securities’ incomes:
We designate by securities the capital ownership titles (actions of
public companies and shares of limited responsibility companies ).
The category of incomes of
securities covers profits distributed by the following legal entity:
1) societies liable of the
corporate tax as well as cooperatives and their unions;
2) associations in
involvement that clothe in fact a legal form that makes them
taxable to the corporate tax;
3) The Tunisian
establishments of foreign companies liable of the corporate tax.
The taxation of securities
distinguishes between two categories of security incomes:
- Security incomes exonerated
of the income tax;
- Security incomes submitted
to the income tax.
Security incomes exonerated
of tax: The dividends distributed, at regular way, by submissive
societies to the corporate tax, are not submitted to the NPIT.
Security incomes submitted to
the tax: According to the administrative doctrine, are submitted to
the NPIT in the category of security incomes, the following elements,:
a – Directors’
fees,
b – remunerations
of controlling partner managers,
c – Sums or values
put into the disposition of partners, shareholders or carriers of
parts and non appropriated on profits as:
- the hold in charge of the
personal expenses of one of the partners,
- the sale by a partner to
the society of possessions for a value which is superior to the real
one,
- The sale by the society to
a partner of a good for a value which is lower to the real one.
d - except contrary proof,
the sums submitted directly to the disposition of partners or by
interposed people, as advances, loans or deposits, exept those served between parent and subsidiary companies.
The contrary proof must be
established by the partner or the shareholder who must demonstrate
that the operation doesn't have the character of distribution.
To this
title, the contrary
proof can be demonstrated:
- if the loan, object of the
distribution presumption, has been concluded by a duly established
contract, previously to the operation of discount of the presumed
sums distributed in receipt for a normal interest rate and that
conditions of repayment are fixed;
- if advances agreed by the
society to a partner are achieved in the context of normal
commercial operations;
- if the advance or the loan
made the object of repayment before the intervention of control
services.
When an advance in current
account or a loan made the object of an imposition for
the beneficiary, all repayment by the person to the legal entity, intervening after imposition to the NPIT has taken place,
makes the tax amount, correspondent to the fraction of the
impositions to which their assignment had given place, attributable
on the owed tax related to the year of the repayment or the
following years.
e – Occult
remunerations and advantages: It is about regularly accounted loads
(fees, commissions...) except that the enterprise refuses to reveal
the identity of recipients.
f – The occult
profits: to the difference of occult remunerations and advantages,
the occult profits don’t appear in accountancy. It is generally
about decrease of the turnover.
When an income assimilated to
securities is taxable, the submissive base to the tax is constituted
by the raw income before all deduction at source . In the case
the income underwent a deduction at source , the source tax is
added to the net income cashed for the determination of the taxable
categorical raw income. It is then deducted from the due tax on the
global income.
(7) Investment capital
incomes: Are designated by investment capitals, investments to
interests. These investments to stationary incomes are distinguished
of securities that are called investments to risk.
The investment capitals are
credits or titles of credit whereas securities are represented by
titles of capital.
Are considered incomes of
investment capitals:
1)
Interests, arrears, shares and premiums of repayment and other
products of obligations, public effects and other negotiable loan
titles issued by the State, the local public collectivities, the
public establishments, associations of all nature and civil and
commercial societies;
2) Credit interests;
3) Interests of deposits of
sums of money;
4) Interests of security
bonds in cash;
5) Products of current
accounts.
Categorical net income is
constituted by the raw amount of the investment capital income
before all deduction at source tax corresponding to interests and
all other products or advantages that the creditor perceives during
the year preceding the one of imposition, to whatever periods of
time that they apply, without distinction between those pertaining
at the aforementioned year and those paid by anticipation or as
arrears.
Concerning incomes of
investment capitals, the taxation year for the
beneficiary corresponds to the year during which incomes are cashed,
disregarded to the efficient periods to which are connected
these incomes.
Yearly exemption on
obligation interests and saving interests:
Are deductible of the taxable
basis interests perceived by the taxpayer during the year related to
the special accounts of saving opened to banks, or to the
National Savings Fund of Tunisia, or to bonds in the limit of a
yearly amount of one thousand five hundred dinars (1500 D) and
provided that this amount doesn't exceed one thousand dinars for
interests coming from the special accounts of saving opened close to
banks and close to the National Savings Fund of Tunisia.
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Non-taxable incomes to the
limit of 1500 D per year:
1500 D interests of bonds and
interests of the C.S.E and of the C.E.N.T that have themselves a
maximum of 1000 D.
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Income of the exonerated
investment capitals:
Are not submitted to the tax,
incomes of following investment capitals:
1) Interests of the
registered home ownership savings plan served to holders of
registered home ownership savings plan contracts.
2) Interests of deposits and
titles in foreign currency or in convertible dinars.
3) Interests of the current
accounts opened between industrials, tradesmen or agricultural
operators provided that the operations registered to the current
account are exclusively connected to the profession.
4) Accounts interests
of
saving for studies, opened to banks by parents to the profit
of their children.
(8) Foreign source incomes:
Only incomes of foreign
source that have not been submitted to the payment of the tax in the
country of origin are taxable in Tunisia for the
beneficiary resident in Tunisia. In addition to that fundamental
rule of common right, the imposition of incomes of foreign source is,
the most often, related to the domain of the international
taxation every time the income is achieved in a country that
concluded with Tunisia a convention of no double taxation.
When the income of foreign
source is taxable in Tunisia, the base is constituted by sums
effectively perceived from abroad by the taxpayer resident in
Tunisia.
Nevertheless, when the income
of foreign source is a taxable treatment, salary, pension or life
annuity, its taxable net amount is determined considering the
abatement of 10% applicable to treatments and wages or the abatement
of 25% applicable to pensions and life annuities.
(9) Interest of the
distinction between the different categories of taxable incomes: The
distinction between the different categories of incomes presents an
interest because the rules of fixing of the submissive base
to the tax are different from a category to another one.
Contrarily, in the case of
imposition according to the real regime, the distinction between
certain categories of incomes presents a minor interest. It is
notably the case for categories of incomes related to the ICP, NCP,
A.P and P.P when imposition is made according to the real mode. In
these cases, the distinction between categories of incomes can even
lose all sense. Indeed, according to the affectation theory, the
income of a structured building registered to the balance of a ICP
or a NCP is not treated anymore as property’s income but as ICP or
NCP in the context of the general result of the exploitation. In the
same way, the specific regime of imposition of the real estate
capital gain doesn't apply to the affected buildings and carried of
this fact to the asset of a ICP or a NCP submitted according to the
real regime.
Thus, an income raising from
its nature of a given category can by reason of its affectation to
be imposed in the context of another category to which it is
affected.
But then, the interest of
distinguishing between the different categories of incomes will have
concrete consequences on the taxable base or the amount of the tax
in the alternative modes of imposition of the ICP, NCP, AP, and P.P.
So:
- Only the ICP are eligible
to imposition according to the tax forfeit mode.
- Only the NCP can benefit
of the equivalent base forfeit to 70% of the turnover, all taxes
included.
- Only the AP can benefit of
a base forfeit fixed annually in dialogue between the fiscal
administration and the UNA, or else of the regime of the surplus of receipts
to expenses considering variations of stocks.
Concerning properties’
incomes, they have, in the inclusive mode of imposition, specific
modes of base fixing for incomes of built properties that
distinguish them of all other categories of incomes (abatement of
30% on the raw receipts raised of the deduction of justified
maintenance and repair expenses and of the tax on the acquitted
structured buildings).
The interest of the
distinction is as obvious for treatments, wages, pensions and life
annuities that are governed by a specific mode of base.
When they are taxable,
incomes of securities are determined on the basis of the raw income
without the possibility to deduct the possible expenses that
contributed to their realization except if they are connected (according
to the theory of the affectation) to a submissive ICP, NCP, R.F
or AP activity according to the real regime.
Finally, investment capital
incomes follow a comparable regime to the one of taxable securities
except the exemption of 1500 dinars related to obligation interests
and saving interests without that the part corresponding to the
saving interests in the ceiling of 1500 dinars can pass 1000 dinars
per year, exemption that benefits to the taxpayer either when the
imposition of investment capital incomes is made in the category of
incomes of securities and capitals or in accessory to another
submissive income category according to the real regime.
(10) Exonerated incomes of
natural persons:
(i) Exonerations of the
article 38 of the code of direct taxes.
Are not submitted to the tax
the following incomes:
1) The life annuities and
temporary allowances granted to victims of work accident or to those
having right.
2) The life annuities served
in representation of damages and interests according to a judgment
for the repair of a bodily prejudice.
3) Treatments, wages and
indemnities served by foreign States to the profit of the personnel
detached close to the Tunisian Government in the context of the
technical cooperation.
4) Allowances, indemnities
and benefits served under whatever form in application of
the legislation relative to assistance, to the insurance and the
social security.
5) The severance pay said tip
of service end.
6) The special allowances
destined to cover the inherent expenses to the function or the work
supported by employees when they are justified.
7) Interests of the saving
served to holders of registered home ownership savings plan
contracts.
8) Interests of deposits and
titles in foreign currency or in convertible dinars.
9) Interests of the current
accounts opened between industrials, tradesmen or agricultural
operators to the condition that the registered operations to the
current account are connected exclusively to the profession.
10) Dividends regularly
distributed by the corporate entities submissive to the corporate
tax.
11) The indemnity of
expatriation, emoluments, indemnities and other advantages received
by employees, related to their abroad activity, provided that the
employer is domiciled or established in Tunisia and that the
activity relates to:
- technical or economic or
social or environmental studies or to the technical support,
- works of
construction, of installation, related operations of maintenance or
activities of surveillance.
12) Interests of saving
accounts of for studies, opened to banks by parents to the profit
of their children.
(ii) The other exonerations
of common right: are exonerated, in common right regime, the
following incomes achieved by natural persons:
- Capital gains on transfer
of investment values (social parts and shares) held by a natural
person but non-affected to the exploitation.
- Incomes of foreign source
having been submitted to the payment of the tax in the country of
origin.
1. Capital gains on transfer
of investment values: The capital gains coming from transfer of
social parts and shares non-connected to a balance, i.e.
non-affected to the exploitation, are exonerated of the NPIT for
their complete amount. The same rule excludes the possible capital
losses on shares and social parts non-affected to the exploitation
of the deduction right of the global income. The exoneration of
capital gains doesn't apply when they are achieved in the context of
an activity conferring tradesman's quality.
However, the capital gains or
losses on shares and social parts registered in a balance make
integral part of the fiscal result of the concerned individual
exploitation to the exception, nevertheless, of the
transfered capital gain quoted at the BVMT
that doesn't make part of the taxable profit in the limit of the
difference between their daily average quoted market price of
the last month of the exercise preceding the one at which the
transfer had taken place and their acquirement or subscription
value.
2. Incomes of foreign source
having been submitted to the payment of the tax in the country of
origin
(iii) incomes having
supported a liberating deduction at source
(iv) Obligation to declare
exonerated incomes: The yearly declaration of incomes comprises
obligatorily, all incomes and profits whatever is their fiscal
regime. The defect of declaration of exonerated incomes and profits
drags the payment of the delay penalty of 0,75% by month or
fraction of month calculated on the basis of the owed fictional tax
as if these profits and incomes were submitted to the tax.
(11) Common deductions: to
determine the taxable global gross income, it is agreed to deduct
from the sum of the taxable categorical net incomes a certain number of
deductions called common when they are not consedered in the
assessment of one of income categories.
These deductions constitute
to some extent the deductible loads of the global income.
Global net income =
∑ of categorical net incomes after possible deficit deduction.
=> Taxable net income =
global net income – common deductions
In common right regime, the
Tunisian taxation comprises 8 loads susceptible to make the object
of a deduction from the global income:
1) Pension benefit of
annuities.
2) The bounty of
insurance-life.
3) The exemption on interests
of the saving and bonds.
4) The inclusive
deduction at the title of family chief.
5) The inclusive
deductions at the title of children under responsability.
6) The deduction at
the title of parents under responsability.
7) Grants to the 26-26 and
the 21-21.
8) The sums paid at
the title of the academic loan repayment in principal and interests.
To be deductible of the
global income, the common loads must present the following features:
(1) To be foreseen by the law:
So, Only deductions expressly stated by the law are susceptible to
be deducted of the taxable global income.
(2) Not to make the object of
a double deduction: So, when a load making part of the common
deduction list was already made the object of deduction at the level
of a categorical income (such can be for example the case of grants
to the 26-26 or the exemption at the title of interests), it is not
more deductible from the global income.
(3) Except the inclusive
abatements bound to the family, to be deductible, the load of the
global income must have made the object of a payment during the year
at the title of which the tax is owed.
(4) The load must be
justified in a convincing way.
The justification is required
at the time of the deposit of the declaration. It can make the
object of a justification demand addressed by the administration to
the taxpayer.
(12) The scale of tax on the
income: To the exception of the tax forfeit regime reserved to
the inclusive making part of the ICP that consists in determining
the due tax at this title by application of a scale established
according to the declared turnover or that consists in a global
inclusive tax of 1500 D per year, the other types of imposition are
established on the basis of a taxable base to which we apply a scale
with progressive rate by slice of income.
The taxable base to the
natural person income tax composed of the global net income
approximated to the higher dinar is submitted to the tax according
to the following progressive scale:
|
Slices (from..... to
.....)
|
Applicable rate to the slice
|
Efficient rate to the
superior limit of the slice
|
|
0 à 1.500 dinars
|
0%
|
0%
|
|
1.500,001 à 5.000
dinars
|
15%
|
10,50%
|
|
5.000,001 à 10.000
dinars
|
20%
|
15,25%
|
|
10.000,001 à
20.000 dinars
|
25%
|
20,12%
|
|
20,000,001 à
50.000 dinars
|
30%
|
26,05%
|
|
Au delà de 50.000
dinars
|
35%
|
-
|
Examples:
1) We suppose there is a
taxpayer who has a taxable yearly global net income of 45.000 D.
The income tax determined by
application of the scale is the following:
First mode of calculation of
the NPIT :
until 20.000 D x 20,12% =
4.024,000 D
20.000 D to 45.000 D that is:
25.000 D x 30% = 7.500,000 D
Total: 45.000 D
11.524,000 D
Second mode of calculation of
the NPIT :
Slices of Incomes:
1500 x 0
= 0
3500 x 15% = 525,000 D
5000 x 20% = 1000,000 D
10000 x 25% = 2500,000 D
25000 x 30% = 7500,000 D
TOTAL 4500
= 11525,000 D
The NPIT gives place to
provisional deposits attributable to the due IR at the title of the
following categorical incomes: ICP and NCP
(13) The tax on the real
estate capital gain:
a) Field of application: The
tax on the real estate capital gain applies to transfers:
- of the social rights in the
real estate societies: to be taxable, the social right transfer in
the real estate societies must carry on the social rights belonging
to real estate civil society members whose activity consists
essentially in the management of the social assets of constituting
members it and whose rights are represented by buildings or parts of
building of the social asset base of the society;
- of lands to build situated
in plans of urban planning and perimeters of properties’
intervention;
- of structured buildings;
- of lands which origin was
the State when they are acquired by the assignor by a way other than
the way of exchange and that lost their agricultural vocation.
b) Notion of transfer:
The transfer concern all operation of sale, exchange, donation or
contribution in society.
c) Transfers of building
exonerated of the tax on the real estate capital gain:
Are exonerated the transfers
made:
- to the spouse;
- to ascendants or downward;
- in the context of an
expropriation because of public utility; and
- in case of inherited
assests transfer;
- or of the main dwelling in
the limit of a global surface not passing 1000 m2 including the
built and non-built dependencies.
d) Building out of the field
of application of the tax on the real estate capital gain:
Transactions of agricultural lands other than those whose origin was
the State, having lost their agricultural vocation and their
buildings, are outside the field of application of the tax on the
real estate capital gain, as well as the naked lands not situated in
plans of urban planning and perimeters of properties’
intervention, and are not by this fact submitted to this tax.
Are located also out of the
field of application of the tax on the real estate capital gain:
- Transfers of building by
natural persons when the building is affected to the asset of the
balance of a submissive exploitation according to the real regime of
imposition (theory of the affectation).
- Transfers of building by
legal entities since the regime of the tax on the real estate
capital gain is specific to the natural person imposition.
e) Tax rate: The real estate
capital gain is submitted to the following tax rates:
- 10% when the transfer
intervenes during the period of ten years counted from the date of
the possession.
- 5% when the transfer
intervenes after ten years counted from the date of the possession.
f) Calculation of the taxable
base to the rate of 5% or 10%: The base is determined by the
difference between the price of transfer and the price of
acquirement or the production cost raised of 10% by year of
detention.
g) The price of transfer: The
price of transfer is equal to the agreed selling price in the
contract or the rectified price according to the current procedure
in effect concerning revision of transfer prices applicable to
registration fees.
In case of the exchange, the
price is constituted by the value of the received good corrected of
the possible boot.
In case of donation, it is
the declared price possibly corrected by the administration.
For contributions in society,
the price is constituted by the value assigned to the contribution
in kind.
h)
Aquisition cost :
The aquisition or the production cost is constituted by the
production cost of acquisition exchange or construction of given up
assets including the land value.
This term comprises also the
justified amounts of building occupancy expenses done by the
assignor either in the context of the operation of acquisition or
exchange or in the context of operations of planning, modernization
or enlarging the building object of the transfer, and in a general
manner, all works that increase the value of the building and that
have been achieved by the assignor during the period of detention of
the asset.
To be accepted in deduction,
these expenses must be justified and must not correspond to the
maintenance normal expenses.
The
gross-up of 10% per year: The production cost of aquisition ,
exchange or construction is actualized by an increase of 10% by year
of detention.
Particular case of the tax on
transfers of domanial lands having lost their agricultural vocation
The tax on the capital gain
is owed at the transfer of shares or parts of shares for which the
origin of property comes from the transfer, other than by exchange
way, of domanial lands having agricultural vocation and that lost
this vocation, that is to say lands that:
-
make part of an accepted urban planning plan, which excludes the
other form of change of the agricultural vocation of these
lands; and
-
didn't make the object of a decision of forfeiture or resumption.
The
capital gains of agricultural land transfers of which the origin of
property was the State, and that are acquired by the assignor by an
other way than the exchange, are submitted to the tax according to
the capital gain regime liable to the rate of 25% or 50% according
to the purchaser's quality.
Under-section
2. corporate tax
The corporate tax
(CT) applies to the submissive unincorporated business to the corporate tax as well as to
the steady establishments of foreign societies established in
Tunisia as well as to certain versed incomes to the foreign moral
people no established in Tunisia.
We distinguish between the
legal entities which are submissive to the CT and those that are
exonerated either according to arrangements of common right or
according to the legislation on the tax shields.
1. Submissive entities
to the CT
The legal entities that are
submissive to the CT comprise the Tunisian legal entities, the
steady establishments in Tunisia of foreign societies and the
foreign legal entities that are not established in Tunisia by reason
of some incomes of Tunisian source.
A. Tunisian legal entities
submissed to the CT
Are
submitted to the CT the following legal entities that exercise their
activities in Tunisia whatever is their object:
(1)
Companies aimed to article 7 of the code of the business
corporations.
(2)
Cooperatives of production, consumption or services and their
unions, to the exception of the following cooperatives that are
exonerated of tax :
- Cooperatives of services
whose activity contributes to the merchandising of the agricultural
or fishing products and operating in the whole markets;
- Cooperatives of
agricultural and fishing services;
- Production workers
cooperatives .
(3) The public
establishments and organisms of the State, of governments and
townships with industrial and commercial character enjoying the
financial autonomy.
(4) Civil companies if it is
established that they present in fact features of business
corporations.
(5) Copartners of
associations in involvement when they have the form of legal
entities submitted to the corporate tax.
B.
Foreign societies
permanent establishment in Tunisia
(1) The Tunisian foreign
societies
permanent establishment are submitted to the corporate tax by
reason of the Tunisian activity when they raise of a foreign legal
entity that would have been liable of the CT.
(2) In the same way,
any foreign legal entity that achieves building incomes in Tunisia
is considered as being established in Tunisia, which makes it liable
of the corporate tax to the title of incomes achieved in Tunisia
when it has the form of a society liable of the CT.
C. Foreign legal entity
imposition to the title of some incomes of Tunisian source
The corporate tax is owed
under the form of liberating deducted at source taxes to the title
of the following incomes versed to legal entities that are neither
established nor resident in Tunisia:
- Investment capital products
placed in Tunisia, interests of loans and directors’ fees to the
exclusion of interests of deposits and titles in foreign currencies
or in convertible dinars;
- Remunerations to the
exception of remunerations paid for their own account by fully
exporter enterprises as definite by the legislation in effect, to
the title:
• of "royalties",
• of the use, of the
concession of the use or the patent transfer , a mark of factory or
trade, a drawing or a model of plan, a formula or a process of
manufacture, including the film movies or of television,
• of the use, or of the
concession of the use of an industrial, commercial, agricultural,
harbor or scientific equipment to the exception of remunerations for
chartering of ships or airships affected to the international
traffic,
• of information
corresponding to an experience acquired in the industrial,
commercial or scientific domain,
• of the technical or
economic studies or a technical support.
In the same way, are
submitted to the corporate tax, the legal entities neither
established nor resident in Tunisia that achieve in Tunisia
installation operations or related surveillance operations.
Arrangements of common right
making taxable the foreign legal entities that are neither
established nor resident in Tunisia must be conjoined with
arrangements foreseen by conventions of non-double taxation. When
such a convention exists between Tunisia and the origin country of
the foreign society, the most favorable arrangements to the foreign
society between the general regime of common right and the
particular regime instituted by the convention are applied.
Exceptions to the imposition
of incomes of Tunisian source versed to the foreign societies
neither established nor resident in Tunisia : According to the
administrative doctrine, the legal entities neither established nor resident in
Tunisia that perceive honoraria, commissions or brokerages there,
are outside of the field of application of the corporate tax.
Consequently, remunerations that are served to title of honoraria to
the strict sense of the term, commissions or brokerages to foreign
legal entities that are not established in Tunisia are submitted to
no deducted at source tax.
2. Legal entities exonerated
of the CT
Some legal entities are
exonerated of the CT according to arrangements of common right,
whereas other legal entities are exonerated to permanent way or
during a limited period according to tax shields.
A. Legal entities exonerated
in common right regime
Are exonerated of the
corporate tax in the limit of their social object:
(1) Interprofessional
groupings that don't achieve principally lucrative activity and
whose resources are from fiscal or parafiscal origin;
(2) The mutual insurances
regularly organized;
(3) Free managed saving and
precaution funds;
(4) The public
establishments, organisms of the State or of the local public
collectivities without lucrative goal;
(5) Cooperatives having for
activities:
- cooperatives of services
that the activity contributes to the merchandising of the
agricultural or fishing products and operating in the whole markets;
- cooperatives of
agricultural and fishing services;
- Production worker cooperatives
.
(6) Loans and
support of local collectivities fund.
(7) Mutual fund (SICAV).
The exoneration of the
corporate tax is limited to activities belonging to the social
object. All income coming from activities other than those achieved
in the context of the clear legal regime governing the beneficiary
organism of the exoneration remain submitted to the CT.
B. Total exonerations
according to the legislation relative to tax shields
a) The total exoneration
of the CT benefits permanently to the financial and banking
organisms working exclusively with the non-residents, governed by
the law n° 85-108 of December 6, 1985.
b) The exoneration of the
CT benefits also to investment banks governed by the law n° 88-93 of
August 2, 1988 during the first 5 years and the 15 following years
when the totality of their profits is put in non-distributable
reserves, except in case of liquidation.
c) The exoneration of the
CT benefits also, temporarily during the first 10 years, to the
following activities,:
(1) Fully exporter
enterprises governed by the code of incitements to investments that
opt to the exoneration regime at the title of export incomes;
(2) Enterprises installed in
economic activities parcs governed by the law n° 92-81 of
August 3, 1992 as modified by the law n° 94-14 of January 31, 1994
and the law n° 2001-76 of jullay 17, 2001 that opt to the regime of the exoneration
at the title of export incomes;
(3) The
agriculture and fishing enterprises and the first transformation,
conditioning, production and services bound to the agricultural and the
fishing production entreprises governed by the incitements to
investments code;
(4) The enterprises of
manufactural industries, of tourism, of handicraft and some services
achieved in zones of regional development.
(5) The enterprises of
lodging and restoration of students in accordance with a
specifications established by the tutelage ministry.
Whereas the natural person
income tax doesn’t take in account the
tax territoriality rule, the corporate tax applies, in principle, only to the
experienced activities in Tunisia by a Tunisian enterprise or a foreign
societies
permanent establishment in Tunisia
It applies also to some
Tunisian source incomes versed to foreign legal entities that are
neither established nor resident in Tunisia.
In the same way, the Tunisian
corporate tax applies to all income which imposition is assigned to
Tunisia by a fiscal convention of non-double taxation .
Outside of such convention
assigning the imposition of the income achieved abroad to Tunisia,
profits achieved by a permanent
establishment situated abroad are not
submitted to the corporate tax at the Tunisian entity. In the same
way, the deficit of a steady establishment situated abroad is not
deducted from the taxable base to the CT of Tunisian activities.
The profit outside
the field of CT application is that achieved by the permanent
establishment situated abroad.
Sales to the export cannot be
assimilated to profits of a steady establishment situated abroad.
The realization of sales to the export must be looked as being
related to the activities situated in Tunisia. Nevertheless, exports
benefit, except exception, of exoneration in proportion of the
turnover or on the basis of a distinct accounting according to the
legislation on the tax shields or common right.
The corporate tax includes
two tax rates: 10% and 35%.
a) The rate of 10% applies to
the:
(1) societies exercising an
artisanal activity;
(2) Agriculture
and fishing companies when they don't benefit of the temporary exoneration
granted during the first 10 years of activity by the
incitements to investments code;
(3) Societies of fishing boat
arming;
(4) Power stations of
purchase of enterprises of retail trade organized under form of
service cooperatives governed by the general statute of cooperation;
(5) Service cooperatives
constituted between producers for the whole sale of their
production;
(6) Consumption cooperatives
governed by the general statute of cooperation;
(7) Profits achieved by
societies in the context of projects to industrial or commercial
character benefiting of the program of the employment of youngsters
or the national fund of the promotion of the handicraft and the
small professions (FUPHSP).
b) The rate of 35% applies in
the other cases.
For the application of the
tax rate to the taxable profit, the profit is approximated to the
lower dinar.
c) The minimum tax owed by
the insufficiently beneficiary or showing a deficit societies
The yearly tax cannot be
lower than a minimum equal to 0,5% of the raw turnover without that
this minimum exceeds :
- 1000 dinars for the
submissive enterprises to the rate of 10% ;
- 2000 dinars for the
submissive enterprises to the rate of 35%.
This minimum amount of tax is
fixed at 100 dinars for enterprises that don't achieve a turnover or
that quit their activity without putting down the declaration of
cessation. This measure doesn't apply for the new enterprises during
the period of realization of the project without that this period
exceeds three years in any case after the date of the deposit of the
existence declaration.
Societies completely
exonerated according to tax shields arrangements are not
indebted of this minimum tax.
Under-section
3. Regime of fiscally transparent
societies
Partners, members and
copartners (natural persons or legal entities) of the:
1) partnership companies,
2) societies of fact,
3) simple limited partnership
societies,
4) associations or societies
in involvement,
5) and civil societies that
don't clothe in fact features of capital societies,
Are personally submitted to
the natural person income tax or the corporate tax, according to the
case, for the social profit part corresponding to their rights in
the society having exploitation in Tunisia.
Under-section
4. Deducted at
source taxes and advances
There is two categories of
deducted at source taxes: the deducted at source taxes at their true
understanding and advances. The fiscal regime of deducted at source
taxes and the one of advances are similar. Nevertheless, the code of
the NPIT and the CT limits the term advances for the advance of 25%
due on profits of people companies and the advance of 10% due on
some imports of consumption products whereas the term deducted at
source taxes designate all other deductions operated by third
parties. On its side, the article 17 paragraph 2 of the
incitements to investments code institutes an advance of 2,5%
at the
title of the income tax and the corporate tax on the local sales,
other than the agricultural and fishing products, made by completely
exporter societies in the context of the local sale quota that is
granted to them on the basis of their sales to the export.
The 4 types of deducted at
source taxes: We can distinguish between:
• The attributable
deductions;
• The liberating
deductions;
• The definitive
deductions;
• The inclusive deductions.
1 - The attributable
deductions : The deducted at source tax is in principle just an
advance to be worth on the tax that will be effectively owed at the
time of the liquidation or to the title of provisional deposit.
Nevertheless, the deducted at
source tax is liberating of the NPIT and the CT when it is related
to incomes served to persons that are not resident or established in
Tunisia.
2 - the liberating
deductions : The deducted at source tax is liberating when it frees
the beneficiary of the income of all declaration or regularization
to the title of this income.
Nevertheless, in internal
fiscal law, the income submitted to a liberating deducted at source
tax must be declared in the category of exonerated incomes.
3 – The definitive
deductions : The code of the NPIT and the CT institutes a regime
called of the definitive deduction, similar regime to the one of the
liberating deduction. Thus, according to the § 2 of the
paragraph II of the article 52 of the code of the NPIT and the CT,
incomes of investment capitals in dinars achieved by legal entities
that are not submitted to the CT or that are completely exonerated
according to the legislation in effect are submitted to a definitive
deducted at source tax and non-susceptible of restitution to the
rate of 20%. This deduction is operated by the person that pays
these incomes.
4 – The inclusive
deduction : The fourth type of deducted at source tax is the
inclusive deduction on wages versed to foreign employees by fully
exporter societies and the financial and banking organisms working
essentially with the non-residents. Strangers employed by these two
categories of enterprises are submitted to the payment, by way of
deducted at source tax, of an inclusive tax on the income fixed to
20% of the fiscal raw amount of the remuneration.
When it is optional, the
inclusive imposition is balanced for a single person with imposition
resulting from the application of the common right regime at the
level of a taxable raw yearly income of 28.229 D.
Under-section
5. The
determination of the real profit
The real regime of imposition
implies
the
regular and complete bookkeeping in accordance with rules decreed by
the law and financial accounting standards.
The following key rule must
be kept for the real or supposed divergence resolution between
accounting and taxation :
- When an accounting rule
formulated in the accountant system of enterprises hits another
divergent rule resulting from an explicit fiscal disposition,
application is made of the principle of the autonomy: the applied
financial accounting standard is reprocessed for the purpose of the determination
of the fiscal result.
- However, all accounting
rules formulated in the accountant system of enterprises that don't
hit any explicit disposition of the fiscal legislation are
considered common rules to the two matters: financial accounting and
fiscal legislation.
Because of divergences that
exist between the fiscal legislation and the accounting legislation
of enterprises concerning the method of determination of the net
result, the article 79 of the law n° 97-88 carrying finance law for
the year 1998 made obligation in enterprises to join to the yearly
declarations of incomes or profits a state of determination of the
fiscal result.
The fiscal result is
determined from the accounting result.
The fiscal adjustments
permitting to pass from the accounting result to the fiscal result
consist in :
(1) restoring (to add) the
loads accounted but that are not deductible of the fiscal result,
(2) deducting (to subtract)
the products accounted but that are not taxable,
(3) deducting resumptions on
previously restored loads,
(4) deducting the reportable
deficits and amortizations regularly differed in deficit period,
(5) proceeding to the
deduction at the title of advantages and tax credits.
Under-section
6. The tax shields
The system of incitement to
investments offers tax shields bound to the exploitation for
certain activities and physical tax credits in enterprises governed
by the code of incitement to investments as well as the financial
tax credits.
The tax shields bound
to the exploitation are instituted by the incitement to
investments code , the other various regulations of tax shields and
some arrangements of common right.
The advantage bound to the
exploitation results in a total or partial abatement on the taxable
base with or without minimum of tax.
Example: We suppose that
there is an industrial society governed by the code of investments
that achieves a fiscal profit before deduction to the title of the tax shields
of 400.000 D. Its turnover that rises to 5.000.000
D out of tax includes 2.000.000 D of export.
Its taxable result is
determined as follows:
|
Fiscal profit
|
400.000 D
|
|
Exhaustion export:
|
|
|
400.000 D x 2.000.000 D /
5.000.000 D =
|
- 160.000 D
|
|
Taxable profit =
|
240.000 D
|
|
Corporate tax 35% =
|
84.000 D
|
Abatements bound to the
exploitation can be assorted or not of a tax minimum of 20% or
10% from profits for the societies submissive to the CT and 60% or 30%
of the due tax concerning NPIT.
Enterprises can proceed to
the reinvestment of their profits in fiscal exoneration.
Reinvestment points are fixed
according to the activity sector in which is done the reinvestment.
This point applies to the
fiscal profit of the enterprise before exonerated reinvestment.
The recourse to the
exonerated reinvestments drags generally the obligation of the
minimum tax of 20% concerning CT and 60% of the income tax
concerning NPIT.
Nevertheless, the
reinvestment in certain sectors in very reduced number is freed of
the rule of the tax minimum.
A. The two types of
reinvestments
Reinvestments can take the form
of subscription at new social parts and shares or of physical
reinvestments in the enterprise itself.
(1) Reinvestments under the
form of social parts and shares newly created so-called financial
tax credits
All taxpayers natural persons
or societies benefit from the possibility of reinvestment in other
societies to the following conditions:
1)
A
regular and complete bookkeeping
and to be submitted to the real.
2) The society issuing titles
must benefit from tax shields and must put down a declaration of
investment.
3) Shares and parts must be
new.
4) The capital of the issuing
society must not be reduced during 5 years to count of the year that
follows the one in which the reinvestment has been achieved except
if it is about a reduction to resorb losses.
5) The presentation of an
attestation of liberation of the subscribed capital with the yearly
declaration.
6) Only the free fraction is
deductible.
7) The deductible
subscriptions are those free until the date of declaration deposit.
The deducted shares can be
sold then, this transfer doesn't drag forfeiture.
Nevertheless,
- Contributions in nature are
excluded from the profit of the exonerated reinvestment.
- According to the
administrative doctrine, the option to the base forfeit for the NCP deprives of the right to the exonerated reinvestment.
- The premium doesn't open
right to the financial tax credit.
- Only subscription to the
capital of a submissive society to the CT is eligible to the
financial tax credit.
(2) The physical tax credits
The physical reinvestments
within the same enterprise are reserved to societies governed by the
incitements to investments
code and the physical people that
invest in the lodging and the restoration of students.
The individual enterprises
governed by the incitements to investments code are excluded
therefore of the possibility to proceed to the physical
reinvestments.
a) The physical reinvestments
or physical tax credits in the society itself
The physical reinvestment
consists in deducting the immobilization acquisition cost from the taxable base.
Societies can invest all or
part of their profits in itself provided the fulfillment of the
following conditions:
- The physical investment
must be previously declarated and must be financed
by own funds;
- The reinvested profits must
be written down in a «special account of investment» to the
liability of the balance and inserted in the capital of the society
before the expiration of the delay of deposit of the definitive
declaration at the title of profits of the year during which the
deduction took place;
- The declaration of the
corporate tax must be accompanied by the investment program to
achieve;
- Elements of assets acquired
in the context of the investment must not be given during one year
at least from the production efficient entrance date;
- The capital must not be
reduced during the five years following the date of the funded
profit incorporation, except in the case of reduction for resorption
of losses.
The deduction for physical
reinvestment is accumulated with the funded possession amortization.
By this fact, the redeemable
physical reinvestments are deducted from the taxable result twice:
- The first time at their
acquirement,
- The second time by
amortization.
b) The physical tax credit of
justified investment expenses achieved by a natural person investor
in the lodging and the restoration of students is deductible to 100%
from incomes with application of a tax minimum.
B. Financial and physical
reinvestment thresholds
Some tax credits are assorted
of thresholds of incomes that can be reinvested in fiscal deduction
with application of the rule of the minimum tax.
C. Abatement in cascade of
the exonerated reinvestments
The tax credit is granted at the title of every investment operation in limits:
- Of the deduction percentage
own to the considered investment,
- Of the possibly due minimum
tax.
Thus, all investments opening
right to the tax credit, whether they are achieved in enterprises
belonging to the same sector of activity or in different activity
sectors, are deducted in cascade in the limit of the taxable profit
and the tax minimum.
We suppose there is a society
that achieves a profit of 100.000 D.
It achieves tow deductible
investments to the limit of :
- 40.000 D of deductible
physical investments to the limit of 35%.
- 20.000 D of deductible
financial investments to the limit of 35%.
These tax credits are
assorted of the tax minimum of 20%.
The determination of the CT is settled as follows:
|
Profit before reinvestments
|
100.000 D
|
|
1st reinvestment (40.000 D)
|
|
|
100.000 D x 35% = 35.000 D
|
|
|
Maximum deduction of
|
35.000 D
|
|
Remainder
|
65.000 D
|
|
2nd reinvestment (20.000 D)
|
|
|
65.000 D x 35% = 22.750 D
|
|
|
Total deduction is
|
20.000
D
|
|
Remainder, taxable base =
|
45.000 D
|
|
|
|
|
Calculation of the corporate
tax:
|
|
|
45.000 D x 35% =
|
15.750
D
|
|
Minimum of tax
|
|
|
100.000 D x 20% =
|
20.000
D
|
|
Conclusion:
The due tax corresponds to the minimum of tax that is 20.000 D
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|
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