The Finance Act 2026, published in the JORT on December 31, 2025, deeply revises several tax mechanisms applicable to companies. Three areas deserve particular attention from Tunisian SME executives: the increase in VAT thresholds, the revision of the personal income tax brackets, and the tightening of withholding tax on certain cross-border services.
VAT thresholds. The mandatory liability threshold is raised from TND 100,000 to TND 150,000 in annual turnover. Presented as support for very small businesses, this measure must be analysed taking into account the lost right to deduct in case of voluntary non-liability. Companies whose suppliers are themselves liable rarely have an interest in falling below the threshold.
Personal income tax brackets. The progressive bracket of personal income tax is adjusted with a new tier at 35 % above TND 80,000. The effect is mechanical on the compensation of executives treated as employees and on dividend distributions via SARL. An individual impact study is recommended before the 2025 closing.
Cross-border withholding. Services rendered to tax residents in privileged-tax jurisdictions are now subject to a 25 % withholding (versus 15 % previously), unless a more favourable international tax treaty applies. Groups with providers in Dubai, Singapore or Hong Kong must review their contractual flows.
Firm recommendations. For SMEs concerned, we recommend: (1) a quick review of VAT thresholds before the January monthly filing, (2) a simulation of the new income tax integrated into executive compensation strategy, and (3) an audit of tax treaties applicable to international flows. The firm has a detailed technical note available on request.