Tunisia is an African country with a population over 12 million, and it borders the Mediterranean Sea and the Sahara Desert. Best known for the Arab Spring political revolt in 2011, Tunisia had a large impact on other Muslim nations throughout the world. If you’re looking for close access to the Mediterranean Sea and connections to other countries in Africa, Tunisia is a great location for your expansion.
Companies planning an expansion to Tunisia need to start thinking about all the key factors of an expansion, including their Tunisia payroll options. Will you outsource or handle your own payroll? Do you have staff ready to handle taxation and global compliance? Instead of worrying about these questions, you can benefit from the fact that G-P offers Tunisia payroll outsourcing to help you focus on running your company.
Taxation Rules in Tunisia
Tunisia’s resident employees have a progressive income tax, with the top rate set at 35%. All non-resident employees must pay a flat tax of 20% on their gross income. As an employer, you have to register your hired employees with the Tunisian social security regime (CNSS). Then, you need to contribute 16.57% of gross income while employees pay 9.18% of gross income. Tunisia uses a Pay As You Earn (PAYE) reporting system, so employers must withhold all income tax on employment income and send it to the Tunisian tax authorities every month.
Tunisia Payroll Options for Companies
Your company is not limited to one specific payroll type. Instead, you can choose between these four Tunisia payroll options:
- Remote: When you choose a remote payroll option, you’ll add your employees to your parent company’s payroll in another country. You may benefit from all employees being under one payroll, but you’ll have to follow different laws for each country.
- Internal: Another option is establishing an internal payroll within your subsidiary’s office. This setup usually only works for large companies that have the right budget, staff, and experts.
- Tunisia payroll processing company: If you don’t want to handle your own payroll, you can work with a Tunisia payroll processing company. A local company will outsource your payroll, but not your worries about compliance.
- Tunisia payroll outsourcing: You can use Tunisia payroll outsourcing with G-P if you truly want to outsource every aspect of your payroll. We’ll handle your payroll and also take on compliance as the Employer of Record.
How to Set Up a Payroll in Tunisia
Setting up your Tunisia payroll has to wait until you incorporate in the country. A subsidiary houses your employees, payroll, and benefits plan and is the hub from which you work in Tunisia. However, incorporating can take a few weeks or a few months and push back setting up your Tunisia payroll.
G-P will help you work faster with Tunisia payroll outsourcing services. We’ll use our Tunisia PEO to help you work in a day or two. Instead of setting up your own payroll, you can add your employees to our existing and compliant global PEO.
Tunisia has extensive legislation related to entitlement and termination terms. Learning and truly understanding these terms before deciding on a Tunisia payroll option will help you stay compliant. Some of the highlights of the law follow:
- The worker has the right to appear before the Discipline Council to defend their case.
- Employers and employees must give one month’s notice of termination in writing.
- The employee can take time off during the second half of the notice period to look for other jobs without losing any salary.
Payroll Processing Company in Tunisia
G-P has experience helping companies expand all over the world. Contact us today for more information about Tunisia payroll outsourcing and our other services.