The Arab Institute of Business Leaders (IACE) has presented a series of recommendations for the 2026 Finance Law, aiming to revive the economy, improve corporate competitiveness, and strengthen fiscal fairness.
The document, submitted to Parliament, proposes introducing a preferential tax rate of 15% for industrial activities, given their added value, compared with 25% for commercial activities and 20% for services. The goal is to stimulate the manufacturing sector, considered a pillar of economic recovery.
IACE also recommends reducing the tax burden on sole proprietorships, which is deemed disproportionately high compared with companies, as well as exempting companies from the third provisional tax payment if they have recorded an excess tax for three consecutive years.
Other proposed measures include revising the scope of deductible expenses, clarifying the tax regime for professional vehicles, and extending the period for deducting carried-forward losses from 5 to 10 years, in light of recent crises that heavily affected the economic fabric.
IACE further suggests avoiding double taxation for Tunisian companies operating abroad.
Regarding VAT, the institute calls for restoring the suspension regime for exporting and service companies and reducing VAT on residential properties for individuals from 19% to 13% for homes priced over 400,000 dinars, to support a struggling real estate sector.
IACE also emphasizes strengthening taxpayer protections, proposing mandatory prior notification in all cases of automatic taxation, including penalties, and removing provisions that prevent full deduction of amounts reinvested in land acquisition, to encourage regional and agricultural investment.
It recommends reintroducing the material tax relief mechanism removed by the 2017 reform to encourage the renewal of productive equipment and extend fiscal benefits to companies involved in the primary processing of agricultural and marine products.
According to IACE, it is necessary to maintain the current wealth tax system by limiting the tax to real estate and the tax base to unproductive real estate. This measure aims to prevent capital flight, reduce savings decline, and curb tax evasion.
The institute also calls for exempting non-residents who own real estate in Tunisia financed in foreign currency, as well as foreign residents in Tunisia who hold real estate abroad, from wealth tax.
What the 2026 Finance Law provides for companies
Among the measures proposed in the 2026 Finance Law for business enterprises is the creation of a 15-million-dinar (MD) credit line to provide favorable loans to companies operating in disadvantaged regions.
Additionally, a 35 MD fund will be reserved to support the credit line available to community-based companies.
The law also proposes supporting SMEs through a new credit line of 10 MD to finance their management and operational costs. This line will be effective from January 1, 2026, to December 31, 2027.
Another 23 MD credit line will be established during 2026 to provide interest-free and collateral-free loans to young entrepreneurs and small businesses, ensuring project leaders can self-finance.
Finally, the law stipulates launching a 10 MD credit line dedicated to small farmers to support financing for the 2025–2026 agricultural season.
