Arab Institute of Business Leaders (IACE) Presents Recommendations for the 2026 Finance Law
The Arab Institute of Business Leaders (IACE) has presented a series of recommendations for the 2026 Finance Law, with the aim of relaunching the economy, improving business competitiveness, and strengthening tax equity. The document, transmitted to Parliament, proposes the introduction of a preferential tax rate of 15% for industrial activities, considering their added value, compared to 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 alleviating the tax burden on individual businesses, deemed disproportionate compared to that of companies, as well as exempting the third provisional installment for businesses showing a tax surplus for three consecutive years. The proposed measures also include revising the scope of deductible charges, clarifying the tax regime applied to professional vehicles, and extending the deadline for deducting reported losses from 5 to 10 years, in light of recent crises that have heavily affected the economic fabric. IACE also proposes avoiding double taxation for Tunisian businesses abroad. Regarding VAT, the institute calls for restoring the suspension regime for exporting and service companies and reducing VAT from 19% to 13% on housing for individuals with a price exceeding 400,000 dinars, in order to support a struggling real estate sector. IACE also emphasizes the need to strengthen taxpayer guarantees, proposing to make prior notification mandatory in all cases of taxation, including penalties, and eliminating provisions that prevent the total deduction of reinvested amounts for land acquisition, in order to support regional and agricultural investment. It recommends reintroducing the material exemption mechanism abolished by the 2017 reform, in order to encourage the renewal of productive equipment, and granting tax benefits to companies operating 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 non-productive real estate. This measure aims to avoid capital flight, reduce savings, and increase tax evasion. The Institute also calls for exempting non-residents who own real estate in Tunisia financed in foreign currency, as well as foreigners residing in Tunisia and holding real estate outside the country, from the wealth tax.
