Monthly Newsletter The Draft Finance Law for the year 2020
Abdelly & Chaary and Partners are delighted to make available to their dear Clients and Partners, for any useful purpose, a summary of the main provisions of the Draft Finance Act for the year 2020, wishing you good reading.
This Newsletter has been prepared solely for information purpose.
Our Firm remains at your service for any further clarification.
The main Provisions of the Draft Finance Act
1/ Creation of a new tax audit called “Punctual audit” which concerns the fiscal situation of a taxpayer or a part of this situation for a period less than one year. Such verification benefits from simplified procedures and shortened deadlines to expand the number of Taxpayers involved in the tax audits.
2/ Possibility for Tax Department to base, during a preliminary Tax audit, on the on-site visits ,inspections, material findings and this or the control and the verification of the advantages, deductions, and privileged regimes in fiscal matter with authorization of the controllers to obtain copies of the documents necessary for the tax audit.
3/ Increase of the amount paid for the suspension of the execution of the tax decrees of arbitray assessment due to a failure to file tax returns to 20% of the tax due (instead of 10%) or the payment of a bank guarantee 15% that are applicable in case of disagreement between the administration and the taxpayer .
4/ Possibility of registration of contracts and other documents and payment of tax stamps by reliable electronic means. The modalities will be fixed by Ministrial Order.
5/ Determination of the oil services provided to the companies operating under the hydrocarbons legislation and which are concerned by the CIT rate of 35% by submitting the part of the profits from the services provided for in article 130.1 of the hydrocarbons code to the CIT at the rate of 35%.
6/ Relaxation of the conditions of the flat rate regime in the category “industrial and commercial benefits” for individual persons established within the country (outside municipal areas).
7/ The granting of tax benefits and suspensive regimes to companies and individuals with custom debts for more than two years is subject to the regularization of such debts or the signing of a payment schedule.
8/ VAT suspension of certain products for the encouragement of the fishing industry (woven polyester, nylon and polyamide yarns for the manufacture and repair of fishing nets and metallic yarns for the manufacture of metal ropes for fishing).
9/ Extension until December 31st , 2024 of the period of reduction of the rate of CIT to 20% for 5 years for companies making IPO with a public offering of at least 30% , the same measure applies to companies subject to corporate tax at a rate of 25% and which are listed on the stock market from 01/01/2017 and which benefit from a reduction of the corporate tax rate to 15 %.
10/ Increase in family deductions for dependent parents from 150 TND to 450 TND per year for each dependent parent.
11/ Clarification of the terms and conditions for the submissions of certain activities that do not meet the condition of substantial activity at the tax rate of 13,5% under certain conditions (to be fixed by Decree) . This measure mainly concerns :
– innovative services in information technology, software development and data processing
– International trading companies
– Logistics services provided in a grouped way
12/ Tax measures supporting the Tunisian Association of Children’s Villages.
13/ Determination of the tax regime for Islamic insurance and mainly the extension of the scope of corporate income tax (CIT ) to cover Islamic insurance companies at a rate of 35% .
14/ Generalization of the reduction of withholding tax from 15% to 5% for remuneration paid to film artists and owners of copyright.
15/ Registration of secret public contacts on the basis of a specific declaration according to the sample prepared by the Tax Administration.
16/ Late payment penalties for customs debts are aligned with the penalties applied to tax debts, which are set at 0.75% per month or fraction of a month’s delay.
17/ Application of a contribution of 10 TND on each judgment, judicial decision , addition of payment, and authorization on request, from all the courts for the benefit of the justice support fund which will be created for the improvement of the court infrastructure and working conditions.
18/ Possibility of exchange of tax notifications and letters between the Tax Authorities and Taxpayers by reliable electronic means. ./.