Reinvestment should not be viewed solely as a last-minute tax planning tool before filing deadlines, university lecturer and judicial expert in taxation and accounting Manel Degui said last Friday.
Instead, it should be part of a proactive strategy adopted from mid-year, allowing businesses and individuals to plan investments more effectively and maximize available tax incentives, she argued.
Speaking on the program Achara3 Ettounsi, Degui said many companies wait until March (for legal entities) and April or May (for individuals) before considering reinvestment. She stressed that the current period is the ideal time to assess financial results, evaluate investment needs, and make well-informed decisions.
She noted that reinvestment can take several forms, including purchasing new equipment, upgrading existing assets, or directing funds toward tax-advantaged investments such as life insurance, equity subscriptions, or investments in startups.
According to Degui, investing early offers two key advantages. First, it allows investors to benefit from an additional year within the mandatory holding period required for certain investment products, such as life insurance policies or equity investments. Second, it gives businesses and individuals more time to determine the optimal amount to invest.
She added that investing in startup capital remains one of the most attractive tax incentives available, as it allows 100% of the invested amount to be deducted from taxable income, without the application of the minimum tax. This benefit is not available for certain other types of investments, where taxpayers must still pay the minimum tax.
Degui urged both companies and individuals not to wait until the final days before tax deadlines. Instead, she encouraged them to consult accounting and tax professionals well in advance to develop an early investment strategy that optimizes tax benefits while maximizing financial returns.
