Taxation of international executives
The residency rules are the same for short- or long-term assignments, although it is often more likely that an employee will remain resident in the home country/jurisdiction under a tax treaty during a short-term assignment. If the employee is a non-resident of Tunisia, it may be possible to structure the assignment in such a way as to make use of a dependent personal clause in the tax treaty with the country/jurisdiction of residence in order to exempt the employee from income tax in Tunisia on their compensation earned for services carried in Tunisia.
Are there special payroll considerations for short-term assignments?
No special consideration.
What income will be taxed during short-term assignments?
The income paid for services performed in Tunisia and booked in the accounts of the local entity is subject to individual income tax in Tunisia.
Are there any additional considerations that should be considered before initiating a short- term assignment in Tunisia?
Information is not available.
All information contained in this publication is summarized by KPMG ENTREPRISES SARL, the Tunisian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Tunisian Tax code, Tunisian Personal Income Tax and corporate Tax Code, 2020, Tunisian Social Security administration Website, Tunisian Labor Law Code, Tunisian Investment Law of 2017, Central Bank of Tunisia Website, Tax treaties signed by Tunisia, Ministry of Employment Website.
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