Tunisia opens its doors to foreign capital
On 1 April a new foreign investment law came into force, making life easier for foreign capital to develop the country’s economy. The most important part of the reform bill has already been approved and will allow simpler procedures, shorter bureaucratic deadlines and softer export taxes.
On the one hand, taxes were softened for foreigners producing for re-export (10% tax, instead of the 25% applicable on goods sold in Tunisia) and which finances a project that exceeds 20 million euros or with Less 300 Employees (Tax exemption for ten years). On the other hand, the advantage of reducing considerably the administrative procedures with a rule of “tacit consent” for the approval of projects.
The goal is to attract 60 billion dollars in 5 years
The new law on foreign investment is one of the anchor points of the 2016-2020 plan for the country’s economic recovery. The great plan of the Government, with the purpose of attracting the country 60 billion dollars in five years.
At the end of November, “Tunisia 2020” took place: an event with more than 4,500 representatives from 70 countries that has already generated a promise signed for 14 billion dollars in loans, projects, contracts and lines of credit.
With “Tunisia 2020”, Tunisia has aroused the interest of many investors, China, Turkey, Europe and many Gulf countries.
Financial Privileges and Reduced Times
The law, whose last decrees take effect in the coming days, emphasizes the improvement of working time, while the imposition has not been chosen as the pivot around which the new code revolves.
Also, who now offers too much privileges on taxes is not welcome by Europe and unlike Morocco, Tunisia has chosen to focus on financial benefits and bureaucratic facilities.