Law No. 17 of 2025: New Tax Incentives for Tunisian Families
The law n°17 of 2025, related to the finance law for the 2026 fiscal year, was published in the Official Journal of the Tunisian Republic n°148, dated December 12, 2025, after being promulgated by the President of the Republic, Kais Saied.
Key Provisions
The law introduces, through its article 55, a specific tax advantage granted once during the importation or acquisition, on the local market, of a new or used vehicle for the benefit of resident Tunisian families.
According to the provisions of this article:
- Vehicles imported with a diesel thermal engine with a displacement not exceeding 1,900 cm³, or a thermal engine with a displacement not exceeding 1,600 cm³, benefit from a reduced consumption tax of 10%, as well as a value-added tax rate set at 7%.
- Electric and hybrid vehicles are exempt from consumption tax, just like vehicles manufactured and assembled locally.
- The age of the vehicle must not exceed eight years at the time of acquisition. Additionally, individuals who already own a vehicle less than or equal to eight years old are not eligible for this advantage.
Income Conditions and Restrictions
The law also sets income conditions:
- The individual net income must not exceed ten times the double of the guaranteed minimum wage.
- The ceiling is set at fourteen times this amount for couples.
- The law imposes a ban on the sale of the vehicle for a period of five years, mentioned on the vehicle registration document.
- It is also prohibited to combine this advantage with another tax advantage related to the purchase of vehicles.
Implementation and Allocation
At least 10% of the total vehicles authorized for importation each year must be concerned by this advantage. The mechanism also provides for the use of donation mechanisms from Tunisians residing abroad, tourist allocation, and authorization to purchase foreign currency for this purpose.
The implementation of the provisions of this article will be the responsibility of the Ministry of Finance, the Ministry of Commerce, the Central Bank of Tunisia, and other concerned ministries, each within their field of competence, within a period of six months from the entry into force of the law.
