G/SCM/N/253/TUN  
6 February 2018 
(18-0822) Page: 1/18 
Committee on Subsidies and Countervailing Measures  Original:  French  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION UNDER ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25  
OF THE SCM AGREEMENT  
TUNISIA  
The following communication, dated 29 January 2 018, is being circulated at the request of the 
delegation of Tunisia.  
 
_______________  
 
 
This communication is being  submitted by the delegation of Tunisia as a new and full 
notification  under Article  XVI:1 of the GATT 1994 and Article 25 of the SCM Agreement and covers  
the period  2010-2012. 
 
TABLE OF CONTENTS  
 
Page  
1   BENEFITS GRANTED FOR  REGIONAL DEVELOPMENT  ................................ ...................  2 
2   INCENTIVES FOR POLLU TION CONTROL AND ENV IRONMENTAL PROTECTIO N ............  4 
3   PROMOTION OF TECHNOL OGY, RESEARCH AND DE VELOPMENT AND ENERGY  
SAVING  ................................ ................................ ................................ ............................  5 
4   ENCOURAGEMENT OF NEW  ENTREPRENEURS, LIGHT  INDUSTRIES AND SMALL  
AND MEDIUM -SIZED ENTERPRISES  ................................ ................................ ..................  9 
5   EXPORT PROMOTION  ................................ ................................ ................................  13 
6   OTHER ADVANTAGES GRA NTED UNDER LAW NO. 9 3-120 OF 
27 DECEMBER  1993 ENACTING THE IN VESTMENT INCENTIVES CODE  ............................  14 
7   NATIONAL UPGRADING P ROGRAMME  ................................ ................................ ....... 15 
8   INDUSTRI AL COMPETITIVENESS D EVELOPMENT FUND (FOD EC)...............................  16 
9   AMOUNTS OF THE INCEN TIVES GRANTED  ................................ ................................ . 17 
 
  G/SCM/N/253/TUN  
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  1  BENEFITS GRANTED FOR REGIONAL DEVELOPMENT  
1. Investment incentives for industrial activities taking place in regional development areas 
comprise tax rebates, capital grants, payment by the  State  of employer contributions to the 
statutory social security scheme and certain infrastructur e expenses.  
2. This notification covers the period 2010-2012. 
3. These incentives come within the overall regional development programme aimed mainly at 
the central  and southern regions of Tunisia, which are still at a disadvantage compared to the 
coastal areas where economic activity is heavily concentrated . They are designed to encourage the 
establishment of small and medium -sized enterprises in these regions and r educe interregional 
disparities.  
4. The legal texts governing regional development incentives are as follows:  
(1) Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives  Code, as 
amended or supplemented by subsequent texts . 
(2) Law No. 73-82 of 3 1 Decem ber 1973 containing the Finance Law for the 1974 budget 
year and establishing the Industrial Promotion and Decentralization Fund (FOPRODI) . 
(3) Decree No. 99-483 of 1 March  1999 delimiting regional development areas , as 
amended or supplemented by subsequent te xts and, in particular, by Decree 
No. 2008-387 of 1 1 February 2 008. 
(4) Decree No. 94-539 of 1 0 March  1994 setting out the capital grants, lists of activities 
and infrastructur e and community facility projects eligible for regional development 
incentives, as amended or supplemented by subseque nt texts  and, in particular , by 
Decrees Nos. 99-486 of 1 March  1999, 2002-1363 of 1 1 June 2002 and 2011 -528 of 
9 May 2 011. 
(5) Decree No. 94-494 of 2 8 February  1994 setting out the procedures for State payment 
of employer contributions to the statutory social security scheme, as amended or 
supplemented by subsequent texts  and, in particular , by Decree No. 95-1729 of 
25 September  1995.  
5. The areas for the promotion of regional development were designated in Annex I and I bis of 
Decree  No. 99-483 of 1 March  1999 on the basis of objective standards, principally the level of 
economic and social development of the regions concerned . This Decre e was amended by Decree 
No. 2008-387 of 1 1 February 2 008. 
Incentives for investment made in regional development areas take the following form:  
(a) deduction of all income or profits ploughed back  into equity or used to increase the 
initial capital of the ente rprise  from personal income tax (IRPP) or corporation  tax 
(IS), notwithstanding a  minimum tax payment;  
(b)  
 
(1) deduction of income or profits from the investment from personal income tax  or 
corporation tax for the first ten  years, and deduction of 50 % of such income or  
profits for the following ten  years  for projects located in priority regional 
development areas ; 
 
(2) deduction of income or profits from the investment from personal income tax or 
corporation tax for the first ten years for projects located  in regional 
development areas of the second group, as defined  by Decree  No. 99-483 of 
1 March 1 999, as amended by Decree No. 2008-387 of 1 1 February 2 008; 
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  (3) deduction of income or profits from the investment from personal income tax or 
corporation tax for the first five years for projects located in regional 
development areas of the first group, as defined by Decree No. 99-483 of 
1 March 1 999, as amended by Decree No. 2008-387 of 1 1 February 2 008; 
(c) full deduction of profits reinvested in the company from  net profits subject to 
corporation  tax; 
(d) waiver of contributions to the low -income housing development fund for an unlimited  
period of time for projects located in priority and second -group regional development 
areas ; 
(e) an investment grant of 8%, 15% or 25 % of the cost of the project, excluding working 
capital, but including the cost of studies;  
(f) a grant by way of State participation in the cost of infrastructur e necessary for the 
project . This grant may cover 25% or 75 % to 85 % of expenditure on infrastructur e 
outside the enterprise ; 
(g) payment of employer contributions to the statutory social security scheme : full 
payment for five years for regional development areas of the first group ; full payment 
for five years and an additional five  years  of reduced payment for regional 
development areas of the second group, and full payment for ten years for priority 
regional development areas.  
6. All investors in the manufacturing activities set out in D ecree No. 94-492 of 
28 February  1994, establishing the lists of activities by sector covered by the Investment  
Incentives  Code, and located in areas for the promotion of regional development , are eligible for 
the benefits provided under the Code , except for  following  industrial activities , which are no longer 
entitled to  the benefits aimed at encouraging regional development : bakeries, pastry -making 
plants , stone quarries, manufacturing of miscellaneous condiments , preparation of chicory, coffee 
processing and roasting , and  motion picture development and production (Decree  No. 2002-1363 
of 11 June 2002). 
The tax benefit s mentioned in paragraph 5(a), (b), (c) and (d) are accorded directly by the 
relevant  department s of the Ministry of Finance upon presentation of an investment declaration 
certificate.  
The capital grant and the grant by way of State  participation in the cost of infrastructure necessary 
for the project, described in paragraph 5( e) and ( f) above, are ma de available by the State  
through the Industrial Promotion and Decentralization Fund (FOPRODI)  set up under Law  
No. 73-82 of 31  December  1973. 
Any company wishing to benefit from these incentives must submit an application supported by a 
project feasibilit y study.  
Applications are examined  by a committee chaired by a representative of the Ministry of Industry  
and made up of representatives from the departments concerned as well as a representative of the 
profession.  
The amounts of the grants are based on the investment project as approved by the Incentives 
Committee . Grants are made by decision of the Minister of Industry . The grants are disbursed in 
three instalments, as follows:  
- 40% at project start -up; 
- 40% upon completion of major infrastructure work;  
- 20% when production begins.  G/SCM/N/253/TUN  
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  The benefit of State  payment of employer contributions to the statutory social security scheme is 
granted by decision of the Minister of Social Affairs on the proposal of the above -mentioned 
Committee.  
 
7. See Section 9 (Amounts  of the incentives granted ). 
8. See paragraph  5. 
9. - 
10. The incentives accorded for the establishment of enterprises in regional development areas 
have no effect  on trade . These incentives are given once  only, at the time when the investment is 
made and not during the production phase.  
2  INCENTIVES FOR POLLUTION CONTROL AND ENVIRONMENTAL PROTECTION  
1. The incentives for investment made by enterprises to combat pollution resulting from their 
activities or by enterprises specializing in waste and refuse collecti on, processing and treatment 
comprise  tax rebate s, investment grants and exemption from duties and taxes on capital goods . 
 
2. This notification covers the period 2010-2012. 
 
3. These incentives are aimed at helping  industrial enterprises introduce  separate wastewater 
networks , make changes to manufacturing processes, avoid wastage, reduce and recycle waste, 
recycle wastewater, use clean technolog y to eliminate pollution  including industrial pollution -
problems  at source, set up  liquid and gaseous effluent  pre-treatment  units consistent  with 
discharge standards , detoxify hazardous waste, and enhance the management of industrial waste 
through recovery  or ecological elimination.  
 
4. The legal texts governing pollution control incentives are the follow ing: 
 
 Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives Code, as 
amended or s upplemented by subsequent texts.  
 Law No. 92-122 of 2 9 December  1992 containing the Finance Law for the 1993 budget 
year and providing for the establishment of a Pollution Cl eanup Fund (FODEP) 
(Articles  35 to 37), as amended or s upplemented by subsequent texts.  
 Decree No. 93-2120 of 2 5 October  1993 setting out the procedures and conditions for 
FODEP support , as amended by Decree No. 2636 of 2 4 September  2005.  
5. The incentives granted for investment in pollution control and environmental protection are 
the following : 
(a) exemption from customs duty and suspension of VAT on capital goods;  
(b) tax deduction o n income or profits invested in or used to increase initial company 
capital, of u p to 50 % of income or profits subject to personal income tax or 
corporation tax ; 
(c) tax deduction of up to 50 % of profits reinvested in the company ; 
(d) tax deduction of income or profits from these activities for personal income tax or 
corporation tax purposes ; and 
(e) a grant capped at 20 % of the cost of the investment . The grant is made  by FODEP, 
established  by Law No. 92-122 of 2 9 December  1992. 
6. These benefits are accorded to all enterprises wishing to invest in pollution control and 
environmental protection.  
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  Exemption from duties  and charges on the equipment needed for the investment is granted by 
decision of the Minister of Finance, based on an opinion by the National Environment al Protection  
Agency (ANPE).  
 
The tax benefits  mentioned  in paragraph 5(b), (c) and (d) are accorded directly by the relevant 
department s of the Ministry of Finance.  
 
State financial aid covering 20 % of the cost of  the investment is paid from FODEP funds . It is 
granted by decision of the Minister of the Environ ment and Land -Use Planning, based on an 
opinion by the advisory panel  responsible for awarding FODEP support . 
 
To be eligible for FODEP funding, the following conditions must be met:  
 
 presentation of a pollution certificate issued by the ANPE;  
 submission o f a project study approved by the ANPE;  
 conclusion of a performance contract setting out the timetable for the operations to be 
carried out ; and 
 an investment and financial plan involving at least 30 % of equity assets.  
FODEP support  is targeted, being restricted to the transformation of existing facilities.  
 
7. See Section 9 (Amounts of the incentives granted ). 
 
8. See paragraph 5. 
 
9. - 
 
10. The incentives granted for i nvestment  in pollution clean-up programmes have no effect  on 
trade.  
 
3  PROMOTION OF TECHNOLOGY, RESEARCH AND DEVELOPMENT AND ENERGY SAVING  
A. RESEARCH AND DEVELOPMENT  
 
1. The incentives provided for investment made by companies in research and development 
comprise tax rebates for investors, exemption from certain duties and charges , capital grants and 
State  payment of certain infrastructure expenses and social security costs if young graduates are 
employed.  
2. This notification covers the period 2010-2012. 
3. These incentives fall under the national policy to promote industrial research a nd 
technological advancement . They are intended to encourage research and development  within the 
company , the acquisition of technological expertise  and technological development to enhance 
productivity and foster relations between businesses  and research centres.  
4. The legal texts governing incentives for research and development are as follows:  
 Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives  Code, as 
amended  or supplemented  by subsequent texts . 
 Decree No. 94-536 of 1 0 March  1994 establishing the amount and procedures for 
according capital grants for investment in research and development activities by 
enterprises in the industrial, agricultural and fisheries sectors , as amended or 
supplemented by subsequent texts . 
 Decree No. 94-494 of 2 8 February  1994 setting out the procedures for State  payment of 
employer contributions to the s tatutory social security scheme.  G/SCM/N/253/TUN  
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   Decree No. 94-1191 of 3 0 May 1 994 establishing the conditions of eligibility for the tax 
benefits provided for in Articles 37, 41, 42 and 49 of the Investment Incentives Code 
and granted for facilities f or energy saving, research into  and the production and 
marketing of renewable energ y, research into geothermal energy, equipment for 
pollution control and waste  collection, processing and treatment , and research and 
development facilities , as amended or supplemented by subsequent texts . 
 Decree No. 2005-1857 of 2 7 June 2005 establishing  the modalities and procedures for 
implementing Article 43 bis (new) of the Investment Incentives Code.  
5. Investment s in industrial research and development are entitled to:  
(a) exemption from customs dut y and suspension  of VAT and excise duty  on purchases of 
capital goods needed for the investment ; 
(b) State  payment of the following:  
(1) 50% of social security contributions over five years, for foreign personnel 
brought in to optimize production capacities and for Tunisian nationals holding 
certificates of higher ed ucation;  
 
(2) part of the employer 's contribution for graduate recruitment , over seven years , 
as follows : 
- 100% the first and second years ; 
- 85% the third year;  
- 70% the fourth year;  
- 55% the fifth year;  
- 40% the sixth year ; and 
- 25% the seventh year.  
(c) a capital grant for research and development activities representing 20% of the cost, 
up to a limit of TND 100,000, of the creation and technical testing of prototypes, field 
experiments and the acquisition of scientific laboratory equip ment needed for research 
and development projects, and 30% of the cost, up to a limit of TND 25,000, of 
original studies necessary for developing new products or processes.  
This grant is charged to the budget of the Ministry of  Scientific Research and Skills Development . 
6. All investments in industrial activities aimed at promoting research and development and 
enterprise -research centre links are eligible for the benefits provided under the Code in respect of 
research and development.  
The tax benefits  for the purchase of capital goods needed for research and development projects 
are granted to enterprises by decision of the Minister of Finance, based on an opinion by the 
committee attached to the Ministry of Finance.  
 
The capital grant for research and  development mentioned in paragraph 5(c) is given by the 
Ministry of Higher Education and Technology  on the basis of a performance contract setting out the 
investment and financing plan, a list of the equipment needed, a timetable for the operations to be 
carried out, the amount of the grant as well as the procedures for its disbursement and the 
undertakings given by the beneficiary enterprise.  
 
The incentive of State  payment of contributions to the statutory social security scheme mentioned 
in paragraph 5( b)(1) is accorded by decision of the Minister of Social Affairs, on the proposal of a 
committee chaired by the representative of the Ministry of Social Affairs.  
 
State  payment of contributions to the statutory scheme mentioned in paragraph 5(b) (2) is 
accor ded by decision of the governor having geographical jurisdiction, based on the opinion of an 
advisory committee  attached to the regional vocational training and employment offices . G/SCM/N/253/TUN  
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  7. See Section 9  (Amounts of the incentives granted ). 
8. See paragraph 5.  
9. - 
10. The incentives granted for investment in research and development have no effect  on trade . 
B. PROMOTION OF TECHNOLOGY AND TECHNOLOGICAL EXPERTISE  
1. Incentives for investment  made to promote  technology and technological expertise take the 
form of direct financial assistance paid from the Industrial Competitiveness Development Fund 
(FODEC) and payment by the State  of human resource training costs.  
2. This notification covers the period 2010-2012. 
3. The objective of the aid is to help industrial companies to finance the acquisition of 
technology and technological expertise  in order to increase their local content and boost 
productivity.  
4. The legal texts governing incentives for the promotion of techno logy and technological 
expertise are as follows:  
 Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives  Code, as 
amended or supplemented by subsequent texts . 
 Law No. 90-111 of 3 1 December  1990 containing the Finance Law for the 1991 budget 
year, as amended or supplemented by subsequent texts . 
 Decree No. 94-540 of 1 0 March  1994 establishing the conditions and procedures for 
benefiting from State payment of human resource training costs in connection with 
investment in technology , as amended o r supplemented by subsequent texts . 
 Decree No. 99-2741 of 6 December  1999 establishing the rules governing the 
organization, working  and operating procedures of the FODEC , as amended or 
supplemented by the relevant texts . 
5. The incentives granted for investment made to promote  technology and technological 
expertise include:  
(a) financial assistance paid out of  FODEC funds;  
(b) payment by the State of 50 % of the cost of human resource training in connection 
with technological investment, up to a ceilin g of TND 125,000.  
Training expenses include registration fees, transport and accommodation costs and other 
training -related outlays . They are paid from the budgeted funding of the Ministry of Employment 
and Professional Integration of Youth . 
6. All industrial  enterprises may benefit from FODEC assistance, which is granted by decision of 
the Minister of Industry , Energy and Small and Medium -Sized Enterprises , based on a study and 
report by an advisory committee.  
As regards payment of human resource training cos ts, any enterprise wishing to benefit from this 
measure must submit to the National Centre for Cont inuing Education and Vocational 
Advancement a training plan along the lines of a model drawn up by the relevant  department s in 
the Ministry of Employment and  Professional Integration of Youth . 
7. See Section 9 (Amounts of the incentives granted).  G/SCM/N/253/TUN  
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  8. See paragraph 5.  
9. - 
10. Incentives granted for investment made to promote technology and technological expertise  
have no effect on trade . 
C. ENERGY SAVING  
1. Incentives accorde d to enterprises making energy -saving investments take the form of 
exemption from duties and taxes on capital goods and financi al assistance from the National  
Energy Management Agency (ANME). 
2. This notification covers the period 2010-2012. 
3. These incentives come under the national programme for the management of energy 
consumption designed to prepare for the post -petroleum phase when Tunisia will have an energy 
deficit . They are meant to encourage companies to make energy savings , and conduct research 
into an d develop renewable sources of energy as well as geothermal energy.  
4. The legal texts governing incentives for energy saving are as follows:  
 Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives  Code, as 
amended or supplemented by subsequent texts. 
 Law No.  2005-106 of 19  December  2005 containing the Finance Law for 2016 
(Articles  12 and 13 establishing the Natio nal Fund for Energy Management).  
 Law No. 2005-82 of 1 5 August  2005 establishing an energy management  system . 
 Decree No. 2005-2234 of 22 August  2005 setting the rates and amounts of capital 
grants made for measures falling under the energy management regime and the criteria 
and procedures  for awarding them , as amended by Decree No. 2009-362 of 
9 February  2009. 
 Decree No. 94-1191 of 3 0 May  1994 establishing the conditions of eligibility for the tax 
benefits provided for in Articles 37, 41, 42 and 49 of the Investment Incentives Code 
and granted for facilities f or energy saving, research into and the  production an d 
marketing of renewable ene rgy, research into geothermal energy, equipment for 
pollution control and waste collection, processing and treatment , and research and 
development facilities.  
5. Investment incentives in the field of energy management take the following forms:  
(a)  exemption from customs dut y and reduction to 1 2% of VAT on purchases of capital 
goods needed for the investment;  
(b)  a specific grant for energy management projects, including those relating to 
renewable and geothermal energy ; this grant covers:  
(1) energy audits, performance contracts and prior consultation : 
 
- 50% of the cost of energy audit s, up to a ceiling of TN D 20,000;  
 
- 50% of the cost of demonstration project s, up to a ceiling of TN D 100,000;  
 
- 20% of the cost of investment in energy manag ement projects, up to a 
ceiling  of: G/SCM/N/253/TUN  
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   TND 100,000 for establishments whose total average annual energy 
consumption does not exceed 4,000 tonnes of oil equivalent (TOE);  
 TND 200,000 for establishment s whose average total annual energy 
consumption ranges betwe en 4,000 and 7,000 tonnes TOE;  
 TND 250,000 for establishments whose average total annual energy 
consumption exceeds 7,000 tonnes TOE.  
(2) the setting up of vehicle engine test units : 20% of the cost of the investment, 
up to a ceiling of TND 6,000;  
 
(3) solar-powered water heating in the residential and private business sectors : 
20% of the cost of solar collectors, up to a ceiling of TND 100 per m2; 
 
(4) the energy switch to  natural gas in the industrial sector : 20% of the cost of 
internal connection and conversion of equipment, up to a ceiling of 
TND 400,000;  
 
(5) the energy switch to  natural gas in the residential sector : TND 140 for individual 
homes  and TND 20 per unit in apartment buildings . 
6. All industrial enterprises wishing to make energy -saving inve stments are eligible for the 
incentives mentioned in paragraph 5.  
Tax benefits  for the purchase of capital goods needed for research and development projects are 
accorded to enterprises by decision of the Minister of Finance, based on the opinion of the 
Technical Committee attached to the Ministry of Finance.  
 
The specific grant is accorded by decision of the Minister of Industry, Energy and Small and 
Medium -Sized Enterprises , based on an opinion by the committee chaired by the managing 
director of the ANME . It is provided under a performance contract between the ANME  and the 
enterprise concerned, setting out all the technical, economic and financial aspects of the 
investment project, as well as the amount of the aid granted, the eligibility conditions and t he 
procedures for its disbursement.  
7. See Section 9 (Amounts of the incentives granted) . 
8. See paragraph 5.  
9. - 
10. The grants given for investments in energy -saving projects have no effect on trade . 
4  ENCOURAGEMENT OF NEW ENTREPRENEURS, LIGHT INDUSTRIES AND SMALL  AND 
MEDIUM -SIZED ENTERPRISES  
A. NEW ENTREPRENEURS  
1. Incentives for new entrepreneurs comprise capital grants, grants by way of State  
participation in the cost of studies, technical assistance fees and expenses relating to the 
acquisition of serviced sites or p remises necessary to the implementation of industrial projects, 
and equity participation.  
Those considered as new entrepreneurs include natural persons of Tunisian nationality, whether or 
not grouped together in a company, undertaking their first investmen t project, managing and 
taking responsibility for the project personally on a full -time basis and having the requisite 
experience and qualifications, but insufficient capital of their own.  
2. This notification covers the period 2010-2012. G/SCM/N/253/TUN  
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  3. These incentives are  designed to encourage the creation of micro, small and medium -sized 
enterprises, foster the spirit of private enterprise, combat unemployment and encourage the 
renewal of the production apparatus.  
4. The legal texts governing these incentives are as follows:  
 Law No. 93-120 of 2 7 December  1993 enacting the Investment Incentives  Code, as 
amended or supplemented by subsequent texts  and, in particular , by Law No. 99-4 of 
11 January 1 999. 
 Law No. 73-82 of 3 1 December  1973 containing the Finance Law for the 1974 budget 
year and establishing the Industrial Promotion and Decentralization Fund (FOPRODI) , as 
amended or supplemented by subsequent texts . 
 Decree No.  2008-388 of 1 1 February 2 008 granting incentives to new entreprene urs, 
small and medium -sized enterprises, small businesses and light industries , as amended 
or sup plemented by subsequent texts  and, in particular , by Decree No. 2011-442 of 
26 April 2 011. 
 Decree No. 94-494 of 2 8 February  1994 setting out the procedures for State payment of 
employer contributions to the statutory social security scheme , as amended or 
supplemented by subsequent texts . 
5. New entrepreneurs who make investments in industry no t exceeding a total cost of 
TND 10 million may receive the following benefits:  
(a) a capital grant of 10 % of the cost of the equipment, up to a ceiling of TND 100,000;  
 
(b) a State  grant towards defraying the cost of the project study ; this grant is set at 70 % 
of the se expenses, up to a ceiling of TND 20,000;  
 
(c) a minimum equity participation granted for manufacturing and service s sector projects 
on the following basis:  
 
(1)  for the first part of the investment and up to TND 1  million , FOPRODI's share in 
the equity  may not exceed 60 % of the minimum equity , and the investor must 
guarantee personal input of at least 10 % of the equity  and a contribution from a 
risk capital investment company ; 
 
(2)  for the balance of the investment and up to TND 10 million , FOPRODI's share in 
the equity  is limited to 30 % of the  additional minimum equity , and the investor 
must guarantee personal input of at least 20% of the equity  and a contribution 
from a risk capital investment company ; 
(d)  State payment of one third of the price of the land or premises required for the 
projec t, up to a ceiling of TND 30,000 ; 
(e)  a capital grant of 50 % of intangible investments;  
(f) a capital grant of 50 % of priority investments in tec hnology, up to a ceiling of 
TND 100,000.  
In all instances,  the participation paid from FOPRODI  funds corresponds to that of the risk capital 
investment company.  
6. The capital grants and loans mentioned in paragraph 5 are made available by the Industrial 
Promotion and Decentralization Fund (FOPRODI) for industrial projects, following examination and 
a study by the technical committee and on the basis of a project feasibility study.  G/SCM/N/253/TUN  
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  The incentive of State payment of employer contributions to the statutory social security scheme is 
accorded by decision of the Minister of Social Affairs on the proposal of  a committee chaired by the 
representative of the Ministry of Industry, Energy and Small and Medium -Sized Enterprises . 
7. See Section 9 (Amounts of the incentives granted).  
8. See paragraph 5.  
9. - 
10. The grants given  for investment s by new entrepreneurs have no e ffect on trade , as the 
incentives are given upon establishment of the enterprise and not during the production phase.  
B. LIGHT INDUSTRY AND CRAFTS AND TRADES  
1. Incentives for light industry and crafts and trades take the form of equity participation and a 
grant by way of State  participation in the cost of studies and technical assistance.  
2. This notification covers the period 2010-2012. 
3. Incentives for investment in crafts and trades and light industr ies come under  the strategy 
launched over ten years ago to promote craft projects and encourage the trades, considering their 
impact on employment.  
4. The legal texts governing these incentives are as follows:  
 Law No. 81-76 of 9 August  1981 creating the National Fund for the Promotion of Crafts 
and Trades and Light Industries (FONAPRAM) , as amended by Law  No. 86-106 of 
31 December  1986 containing the Finance Law for the 1987 budget year . 
 Law No. 93-120 of 2 7 December  1993 enacting the I nvestment Incentives  Code, as 
amended or supplemented by subsequent texts  and, in particular , by Law No. 99-4 of 
11 January 1 999. 
 Decree No. 2008-388 of 1 1 February 2 008 granting incentives to new entrepreneurs, 
small and medium -sized enterprises, small businesses and light industries, as amended 
or supplemented by subsequent texts  and, in particular, by Decree No. 2011-442 of 
26 April 2 011. 
5. Light industries and crafts and trades engaging in the activities specified by decree are 
eligible for the followin g: 
(1) a capital loan not  exceeding 90 % of equity assets corresponding to the part of the 
investment up to TND 10,000 , 80% of equity assets of the part of the investment 
between TND 10,000 and TND 50,000 , and 60 % of equity assets of the part of the 
investm ent between TND 50,000 and 100,000 . This sum is repayable free of interest 
over four  years as of the eighth year;  
 
(2) a capital grant of 6 % of the total cost of the investment . This grant is increased to:  
 
(a) 14% for projects located in regional development areas of the first group;  
 
(b) 21% for projects located in regional development areas of the second group;  
 
(c) 25% for projects located in priority regional development areas.  
 
6. The grants and equity participation mentioned in paragraph 1  are paid out of FONAPRAM 
funds, which are managed by banks.  
7. See Section 9 (Amounts of the incentives granted).  G/SCM/N/253/TUN  
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  8. See paragraph 5.  
9. - 
10. The grants given to small and medium -sized enterprises have no effect on trade . 
C. ENCOURAGEMENT OF SMALL AND MEDIUM -SIZED ENTERPRISES  
1. Incentives for small and medium -sized enterprises take the form of  equity  participation and 
a grant by way of State  participation in the cost of studies and technical assistance.  
2. This notification covers the period 2010-2012. 
3. – 
4.  
 Law No. 93-120 of 2 7 December  1993 enacti ng the Investment Incentives  Code, as 
amended or supplemented by subsequent texts ; 
 Law No. 73-82 of 3 1 December  1973 containing the Finance Law for the 1974 budget 
year and establishing the Industrial Promotion and Decentralization Fund (FOPRODI) , as 
amended or supplemented by subsequent texts ; 
 Decree No. 2008-388 of 1 1 February 2 008 granting incentives to new entrepreneurs, 
small and medium -sized enterprises, small businesses and light industries, as amended 
or supplemented by subsequent texts and , in particular , by Decree No. 2011-442 of 2 6 
April 2 011. 
5. Small and medium -sized enterprises are eligible for the following support from FOPRODI : 
(a) minimum equity  participation in accordance with the following criteria:  
 
* for the first part of the investment and up to TND 2 million , FOPRODI's share may 
not exceed 30 % of the minimum equity ; 
 
* for the balance of the investment and up to TND 10 million , FOPRODI's share 
may not exceed 10 % of the additional minimum capital ; 
 
(b) a studies and technical a ssistance grant representing 70 % of the total cost, up to a 
ceiling of TND 20,000 ; 
 
(c) a capital grant of 50 % of intangible investments;  
 
(d) a capital grant of 50 % of priority investments in technology, up to a ceiling of 
TND 100,000. 
 
6. Incentives for small and medium -sized enterprises take the form of equity participation and 
a grant by way of State participation in the cost of studies and technical assistance.  
7. See Section 9 (Amounts of the incentives granted).  
8. See paragraph 5.  
9. - 
10. The incentives granted to encourage  small and medium -sized enterprises have no effect on 
trade . These incentives are given once only, at the time when the investment is made and not 
during the production phase.  G/SCM/N/253/TUN  
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  5  EXPORT PROMOTION  
1. The benefits accorded to export enterprises take the form of tax rebates for investors in 
equity and for the enterprise when it ploughs back equity . 
2. This notification covers the period 2010-2012. 
3. The system of wholly export -oriented enterprises was established in 1972 in order to attract 
foreign direct investment and create jobs for an expanding labour force.  
It was prolonged by Law No. 93-120 of 2 7 December  1993, and affects all foreign or domestic 
investment in export processing zones . A partial ex port regime has also been established to 
benefit companies exporting part of their output.  
 
The incentives granted to wholly or partial ly export -oriented  enterprises are intended to build up 
export production capacity to meet international standards.  
4. These incentives are provided for in  Law No.  93-120 of 2 7 December  1993 enacting the 
Investment Incentives Code, as amended and s upplemented by subsequent texts  and, in 
particular , by Article 20 of  Law No. 2012-27 of 2 9 December 2 012 containing the Finance  Law for 
2013.  
5. *Total export regime : 
Wholly export -oriented enterprises  may apply for full tax deduction of income or profits derived 
from exports, for co rporation  or personal income tax purposes, for a period of ten years as from 
the first export opera tion. 
Profits from exports were subject to corporation tax at a rate of 10 % as from 2014.  
Article 29 of Law No. 2002-101 of 1 7 December  2002 extends the time -limit for full deduction of 
income and profits derived from exports . Full deduction of income and profits from exports 
continues to apply, under the tax legislation in force, to export -oriented  enterprises  for which the 
period of full deduction of income and profits from exports expires before 2013, in respect of 
income and profits made up to 3 1 Decemb er 2013. A corporation tax rate of 10 % was introduced 
as from 1 January 2 014. 
**Partial export regime : 
Enterprises  engaging in export operations under the partial export regime receive the following 
benefits:  
(a) suspension of VAT payable on imports into t he home market of capital goods and raw 
materials needed for production;  
 
(b) full tax deduction of income or profits from exports for a period of ten years ; 
 
(c) refund of expenses and charges incurred in respect of inputs imported for processing 
and re -export;  
 
(d) refund of duties paid on capital goods imports.  
 
Article 29 of Law No. 2002-101 of 1 7 December  2002 extends the time -limit for full deduction of 
income and profits derived from exports . Full deduction of income and profits from exports 
continu es to apply, under the tax legislation in force, to export -oriented  enterprises  for which the 
period of full deduction of income and profits from exports expires before 2013, in respect of 
income and profits made up to 3 1 December  2013. A corporation tax r ate of 10 % was introduced 
as from 1 January 2 014 (Law No. 2012-27 of 2 9 December 2 012 containing the Finance Law for 
2013).  G/SCM/N/253/TUN  
- 14 - 
  6. All enterprises  producing exclusively or partially for export are eligible for the benefits 
envisaged in the Investment Incentives  Code. 
7. See Section 9 (Amounts of the incentives granted).  
8. See paragraph 5.  
9. - 
10. These benefits have no effect on trade . 
 
6  OTHER ADVANTAGES GRANTED UNDER LAW NO. 93 -120 OF 27  DECEMBER  1993 
ENACTING THE INVESTMENT INCENTIVES CODE  
1. Tax and financial benefits  may be accorded to investment s of particular importance or 
interest to the national economy or for the development of border areas.  
Additional incentives and benefits  may be granted for investment s in the areas of education, 
higher education, including un iversity housing, vocational training and investments relating to 
preparatory years.  
2. This notification covers the period 2010-2012. 
3. These benefits are designed to foster the creation of enterprises in pursuit of the objectives 
of the economic and social de velopment programmes laid down in the five -year plan . 
4. These incentives are provided for in Law No. 93-120 of 2 7 December  1993 enacting the 
Investment Incentives  Code, as amended or supplemented by subsequent texts . 
5. and 6. The benefits  are accorded by decree, based on the opinion of the High -level 
Investment Commi ttee, in the form of:  
(a) income or corporation tax exemption for up to five years;  
(b) a State contribution towards the cost of infrastructure;  
(c) a capital grant not exceeding 5 % of the  amount invested ; the grant may be as high as 
20% for projects involving promising activities;  
(d) suspension  of duties and taxes on the purchase of capital goods needed for the 
purposes of investment.  
For investment s in the areas of education, higher educatio n, including university housing, 
vocational training and investment s relating to preparatory years, the benefits  are accorded in the 
form of:  
 a capital grant not exceeding 25 % of the cost of the project;  
 State payment of part of the salaries paid to Tunisian teaching or training personnel 
recruited on a perma nent basis, up to a limit of 25 % and for a period not exceeding 
ten years;  
 State  payment of employer contribution s to the statutory social security scheme in 
respect of salaries paid to Tunisian t eaching or training personnel recruited on a 
perma nent basis, up to a limit of 25 % and for a period not exceeding ten  years;  
 State  payment of employer contribution s to the statutory social security scheme in 
respect of salaries paid to Tunisian teaching or training personnel recruited on a 
permanent basis for a period of five years, which may be extended once only for an 
equal length of time;  G/SCM/N/253/TUN  
- 15 - 
   provision of land for in vestors under concession agreements in accordance with the 
legislation in force ; 
 exemption from the vocational training tax (TFP) and contributions to the low -income 
housing development fund (FOPROLOS) (Law No. 2007-69 of 2 7 December 2 007 
promoting economi c initiative).  
7. See Section 9 (Amounts of the incentives granted).  
 
8. See paragraph 5.  
 
9. – 
 
10. These benefits have no effect on trade.  
 
7  NATIONAL UPGRADING PROGRAMME  
1. The national upgrading programme initiated in 1996 provides financial assistance to 
industrial companies carrying out restructuring . Such restructuring includes:  
(a) physical investments, in particular investments in the technical and technological 
modernization of the production process, conversion in order to adapt to markets and 
improv ement of company competitiveness;  
 
(b) intangible investments, in particular those covering diagnostic studies prior to the 
upgrading and those fostering greater company competitiveness.  
 
2. This notification covers the period 2010-2012. 
3. The opening up of the economy and the establishment of a free  trade area with the 
European Union calls for upgrading of the industrial sector by setting up a programme and 
structures for modernizing the economy and strengthening the capacities of firms to adapt to the 
demands of the international market.  
Upgrading entails a package of actions within the company and its environment . It therefore 
affects aspects such as technology, organization, financial balance, vocational training, etc.  
With regard to the company 's environment, upgrading affects basic infrastructure, support 
structures and the range of production and service entities related to the industry.  
Initial cost estimates for the first phase of this programme (1 996-2000) stand at around 
TND 2.5 billion, 60 % of which is allocated for upgrading and modernizing enterprises and 40 % for 
upgrading and reinforcing  their infrastructural environment.  
The programme is financed by both the enterprises and the financial sector . State aid  
complements market mechanisms and  is designed to foster and support efforts by enterprises, in 
view of the cost of the operation.  
4. State aid  is financed from the Industrial Competitiveness Development Fund (FODEC), 
established by Law No. 94-127 of 2 7 December 1994 containing the Finance Law for the 1995 
budget year . 
The organization, working and operating procedures of the FODEC are laid down in Decree  
No. 99-2741 of 6 December  1999 establishing the rules governing the organization, working and 
operating procedures  of the FODEC, as amended and supplemented by subsequent texts . 
5. State aid  takes the form of capital grants set as follows:  
 Physical investment s: 
(1) 20% of physical investment s financed from equity assets;  G/SCM/N/253/TUN  
- 16 - 
  (2) 10% of investments financed with other reso urces;  
(3) 50% of the cost of priority equipment purchased in the context of upgrading, up 
to a ceiling of TND 100,000;  
 Intangible investments:  
(1) 70% of the cost of diagnostic studies preliminary to upgrading, up to a ceiling of 
TND 30,000;  
(2) 70% of the cost of any other non -tangible investment designed to improve the 
company 's competitiveness.  
6. The upgrading programme covers private -sector industrial enterprises and industry -related 
service companies, regardless of size, category or location.  
State  aid is granted by decision of the Minister of Industry, based on an opinion by the steering 
committee of the upgrading programme . To that end, an agreement is concluded between the 
Ministry of Industry and the enterprise, setting out the rights and duties  of each of the parties.  
 
7. See Section 9 (Amounts of the incentives granted).  
8. See paragraph 5.  
9. - 
10. The upgrading programme has no effect  on trade . 
8  INDUSTRIAL COMPETITIVENESS DEVELOPMENT FUND (FODEC)  
1. The Industrial Competitiveness Development Fund provides funding for programmes to 
enhance  the quality of industrial products, industrial restructuring processes and strategic sectoral 
studies.  
2. This notification covers the period 2010-2012. 
3. FODEC financial  support is designed  to enhance the quality of industrial products  and 
industrial restructuring processes . 
4. The FODEC was established  by Law No. 94-127 of 2 6 December  1994 containing the Finance 
Law for the 1995 budget year . 
The operation of the Fund was  determined  by D ecree No. 99-2741 of 6  December  1999 
establishing the rules governing the organization, working and operating procedures of the FODEC, 
as amended and supplemented by subsequent texts . 
5. FODEC funding takes the following forms:  
(a) financial assistan ce of up to 50 % of the cost of priority equipment, up to a ceiling of 
TND 100,000 for each enterprise;  
(b) financial assistance of up to 70 % of the cost of isolated, intangible and priority 
investments, up to a ceiling of TND 70,000 for each enterprise;  
(c) financial assistance of up to 70 % of the cost of diagnostic studies prior to the 
restructuring of enterprises in financial difficulties, up to a ceiling of TND 30,000.  
The funding  is granted  by decision of the Minister of Industry.  
 G/SCM/N/253/TUN  
- 17 - 
  6. FODEC support  is intende d for private -sector industrial enterprises and industry -related 
service companies.  
7. See Section 9 (Amounts of the incentives granted).  
8. See paragraph  5. 
9. - 
10. The FODEC has no direct effect on trade . 
9  AMOUNTS OF THE INCENTIVES GRANTED  
2010 -2012  
The following  is a breakdown of the amounts of the incentives accorded to enterprises for the 
period 2010 -2012: 
1. Tax incentives for all categories of investment:  
 
-  Corporation  tax: 
 2010: TND 1,036 million ; 
 2011 : TND 1,123  million ; 
 2012: TND 1,125 million . 
 
-  Personal income tax:  
 2010: TND 33 million ; 
 2011 : TND 31  million ; 
 2012: TND 44 million . 
 
-  Suspension  of duties and taxes on capital goods purchases:  
 2010: TND 240 million ; 
 2011 : TND 77  million ; 
 2012: TND 85 million . 
 
2. Financial incentives for all categories of investment:  
 
(a) Capital grants:  
 
- Agriculture  (Special Agricultural Development and Fisheries Fund  (FOSDAP)) : 
 2010: TND 69 million ; 
 2011 : TND 46  million ; 
 2012: TND 70 million . 
 
- Tourism (Section II)  
 
 2010: TND 10 million ; 
 2011 : TND 1 million ; 
 2012: TND 8 million . 
 
- Industry (FOPRODI):  
 
 2010: TND 65 million ; 
 2011 : TND 54  million ; 
 2012: TND 50 million . 
 G/SCM/N/253/TUN  
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  - Crafts and trades and light industries (FONAPRAM) : 
 
 2010: TND 23 million;  
 2011 : TND 29  million ; 
 2012: TND 13 million.  
 
(b) Contribution to the cost of basic infrastructure:  
 
 2010: TND 1.3 million ; 
 2011 : TND 1.6  million ; 
 2012: TND 0.063  million . 
 
(c) State  payment of employer contribution s to the statutory social security scheme:  
 
 2010: TND 58 million ; 
 2011 : TND 54  million ; 
 2012: TND 60 million . 
 
(d) Export promotion (FOPRODEX):  
 
 2010: TND 19 million ; 
 2011 : TND 20  million ; 
 2012: TND 19 million . 
 
(e) Industrial Competitiveness Development Fund (FODEC):  
 
 2010: TND 83 million;  
 2011 : TND 71  million ; 
 2012: TND 58 million . 
 
(f) Pollution Cleanup Fund (FODEP):  
 
 2010 : TND 1.5  million . 
 
(g) Fund for the Development of Competitiveness in the Agricultural and Fisheries Sectors 
(FODECAP) : 
 
 2010: TND 22.5 million ; 
 2011: TND 26.8 million ; 
 2012 : TND 20.05  million . 
 
(h) Loan interest concessions : 
 
 2010: TND 9.24  million ; 
 2011: TND 0.9 million ; 
 2012 : TND 7.4  million . 
 
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