The New Investment Framework In Tunisia October, 10th 2018 - London

Towards a New Development Model New Investment Law Tunisia Investment Authority

2016-2020 Socio Economic Development Plan pillars towards a New development model : General Background 2016-2020 Socio Economic Development Plan pillars Speed up the implementation of good governance Diversified economy with high employment content Improve business climate Improve export capacities & further integration into the world economy Promote digital economy as a vector of development From a low-cost economy to an economic hub Human development & social inclusion Fulfilling the ambitions of the regions Green economy a driver of sustainable development Improve the living conditions Enhance the efficiency of social policies Boost complementarity components of the education system reinforce the citizenship spirit among youth Strengthen the capacities of the regions and enhancing their attractiveness Improve living conditions Reduce disparities and interconnecting the regions Implement the principle of positive discrimination Fair land management respectful of ecological balances Optimize natural resources management Use clean production means 3 4 5 1 2

Other Ratios and economic indicators towards a New development model : Enhancing Economic Indicators (% at constant prices) GDP growth Investment Growth 2016-2020 4.0 9.0 2020 24% 64% 40% Other Ratios and economic indicators Investment rate of GDP Private investment in total investment Export ( % of GDP)

Logistics Framework Law towards a New development model : Reforms Exchange System Customs Code Fiscal Incentives Law Logistics Framework Law Start-up Act Investment Law Competetion Law Banking Law Venture Capital code PPP Law Completed Underway https://www.tunisiappp2018.tn/en/

Towards a New Development Model New Investment Law Tunisia Investment Authority

Private Public Debates Value added activities Sustainable Development 2. new investment law Benchmark Studies Seminars Private Public Debates Regional Development Value added activities Employment and Skills Sustainable Development

2. new investment law : Characteristics Unique Interlocutor: TIA Fast Track Short deadlines Traceability: Integrated Information System Deletion of Authorizations Recruitment of foreign skills Access to land for investment (non-agricultural) 25 articles 3 decrees 1 decree for authorizations Faster Guarantees according to international standards New Dispute Resolution Framework: Conciliation and Arbitration Protection of intellectual property Financial incentive system more encouraging compared to Benchmark Tax Framework more incentive Simplier More openness Investment law More guarantees More incentives

2. new investment law : New Framework of Investment In Tunisia Entry into force : April 1st 2017 25 ARTICLES General provisions Market Access Investor’s Guarantees & Obligations Investment Governance Grants and Incentives Dispute Settlement Transitional and final provisions Tunisian Investment Fund High Investment Council Tunisia Investment Authority

10 days 60 days 90 days 180 days Simple and clear Deadlines 2. new investment law : Acess to Market Simple and clear Unique interlocuteur for investors "SILENCE COUNTS AS ACCEPTANCE" for administration Cancellation of entry authorizations related to economic activity (27 activities) Freedom of investment principle Deadlines are limited Appeal authorities are identified Deadlines The investment is free. Foreign investors can freely transfer abroad their funds in foreign currency in accordance with applicable change legislation. Setting the deadlines of authorisations Requirement to justify the refusal After the expiry of the deadlines, the authorisation is considered as granted Authorisations to be granted by Tunisia Investment Authority if the administrative authority fails to reply within the deadlines 10 days 60 days 90 days 180 days The administrative authority must invite the applicant to complete his docs If no authorization period is indicated If the granting of the authorization requires the intervention of an administration or the TCB For sectors requiring authorization from the HIC (6 sectors)

Guarantees for the investor 2. new investment law : Guarantees and Obligations Guarantees for the investor Fair and equitable treatment Protection against non-commercial risks Guarantee of industrial and intellectual property Free transfer of benefits abroad Recourse to arbitration if litigation Investor obligations Compliance with applicable regulations on employment, social security, health, competition, consumer protection and environmental protection, Provide accurate and complete information on investment

Freedom to hire more management staff 2. new investment law : Hiring Managerial Staff and Land Ownership Freedom to hire more management staff Employment of 30% of foreign management staff (of the total number of managerial staff) until the 3rd year. This rate is reduced to 10% from the 4th year. Beyond the percentage or the limit mentioned in the previous paragraph, the recruitment of foreign management is subject to Ministry in charge of employment approval in accordance with the labour Code. Any enterprise is allowed to recruit foreign management up to 30% of the total number of the management staff till the end of the third year following the legal constitution of the enterprise, or starting from the date of its entry into effective production, according the enterprise's choice. The investor is free to own, rent and exploit non-agriculture properties for the purpose of achieving direct investments operations or their extensions with respect to the the land management and urbanism Code and the land use plans. Ownership of lands Allow foreign investors to own non-agricultural lands for investments

2. new investment law : Incentives Investment grants Regional Development Priority Sectors Economic Regimes Infrastructure expenditure under regional development Economic performance grants Material investments to master modern technologies and improve productivity Immaterial Investments Research & Development Employee certification training cost Income tax rate reduced to 10 % for totally exporting companies Total tax exemption on reinvested profits in share subscription or increases of the company capital Total tax exemption of benefits for to companies operating in regional development zones for : 10 years (zone 1), 5 years (zone 2 ), and tax income rate of 10% after that period Grants based on job creation capacity Subsidy on employers’ social contribution Wage Subsidy Sustainable Development Grants Regional Development areas 5 or 10 years Totally exporting compaies 10% Total Tax exemption of benefits or reduced income tax

2. new investment law : Incentives for National Interest Projects The investment cost is no less than 50 MD or the creation of 500 jobs within three years. - Deduction of profits from the corporate tax base, up to ten years, - Investment grant up to one third of the investment cost, with a ceiling of 30 MD, - Contribution to the expenses resulting from external infrastructure works.

Towards a New Development Model New Investment Law Tunisia Investment Authority

Tunisia Investment Authority Contact About Boards System Mission Services Tunisia Investment Authority

Coordination sectoral agencies Contact Boards System Mission Services About Coordinate with sectoral agencies to ensure consistency of actions encouraging private investment Unique interlocutor, identification of potential investors, assistance, monitoring, after care Simplify and harmonize procedures for the investor in coordination with other relevant agencies & administrations Ensure compliance with deadlines and standardize the treatment of investment projects Coordination sectoral agencies Interlocutor Unique Investment Policies and Reforms A force of proposals in terms of strategy, investment policies and reforms, in consultation with the private sector

Technical Departments Contact System Mission Services About Boards Technical Departments Authority’s Council Strategic council Investment Policies and Reforms Assistance to Investor Incentives Support … Ensures the proper functioning of the administrative management and the implementation of its general policy. Evaluation of the business climate Recommendations concerning the strategic choices and the public policies related to investment. Public and Private

Contact System Services About Boards Mission “The TIA is the Unique Interlocutor for local and foreign investors. With its network of partners, it positions itself as the facilitator for the concretization of investment projects through reliable information, fluid procedures and personalized support” Mission Excellence Transparency Consistency

Contact Services About Boards System Mission Promotion of Industry and Innovation Agency (APII) National Office of Tunisian Crafts (ONA) Promotion of Agricultural Investments Agency (APIA) Export Promotion Center (CEPEX) - Launching of a national digital platform that aims to bring together investment agencies, local authorities and government departments to reduce deadlines and simplify business procedures. - Digitalization of the Business legal Registration procedure which aims to introduce a faster, more transparent and more uniform system for registering a business National Office of Tunisian Tourism (ONTT) Foreign International Promotion Agency (FIPA)

04 06 01 02 05 03 Contact Services About Boards System Mission Investment Declaration Authorization request Legal constitution Incentive request Claims/ Requests National Interest Projects

Tunisia Investment Authority Contact Services About Boards System Mission www.tia.gov.tn Tunisia Investment Authority

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