Tunisia Employer of Record & Payroll

Africa Deployments Tunisia offers our clients Employer of Record (EOR) services covering all of the regions within.  We offer full-time employment or fixed terms contracts based on your requirements in Tunisia for locals or expatriates.  ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors.  We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Morocco.

 

ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law.  We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Tunisia, Medical, Disability, Life, and Workmen’s Compensation Insurances. Tunisia, officially the Republic of Tunisia, is a country along the Gulf of Guinea and the Atlantic Ocean, in the subregion of West Africa.

What income is Taxable in Tunisia:

Any individual who works and lives in Tunisia for more the 183 days a year will be subject to local taxes in Tunisia.  They maintain a permanent home in Tunisia.  The tax years from effectively from 1 February to 25 March  the following year.  They may not be present for more than 122 days in the tax year and the two preceding tax years after that.

Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee.  All income will be taxed in accordance with the law and the final payroll issued monthly.

What income is exempt from taxes in Tunisia:

  • Net taxable Income which is less than TND  5000 per month is not taxable.
  • Emoluments payable to employees of the East African Development Bank with effect from 01st July 1997

What type of leave is allowed in Tunisia:

  • Annual leave – Paid leave granted at 2 days per month or 24 working days per year.
  • 13 Public Holiday per annum as per Morocco Leave Laws
  • Maternity leave – leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.
  • Paternity leave – Immediately after delivery or miscarriage entitled to 3 working days leave from work.

Can you give Fringe Benefits:

Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax.  Only benefits that cannot be converted to cash will not be subject to tax.  If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.

WHAT ARE THE EMPLOYER & EMPLOYEE CONTRIBUTIONS:

  • Social Security Contribution (Employer 16.57% &Employee 9.18%)
  • Vocational Training Tax

Entities subject to CIT are subject to vocational training tax, calculated at 2% of the gross amount of salaries paid to its employees, including benefits in kind.

IS THERE GRATUITY PAYMENTS FOR TERMINATION:

An Employer and Employee can agree on severance pay.  However it should be noted that the Bill seeks to legislate a fixed severance pay as of 1 month’s gross salary for each year of service.  Dismissal will not be entitled to severance.  Severance must be agreed by both parties and paid within 21 days of acceptance.

What Double Tax Treaties are in place in Tunisia:

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Tunisia.