Tunisian Investment Fund subsidies - Decree 2017-389, Art. 3

On 2017, Tunisian Investment fund (FTI) announced subsidies for renewable energy projects according to Decree 2017-389, Art. 3 . The subsidies aim to promote and attract renewable energy investments in Tunisia. The subsidies included the following financial incentives:

• Equity Contribution by the FTI in enterprises with investment volume less than 15 million Dinar including working capital and investment expansion as follows:
  1. Contribution up to 60% for projects with costs less than or equal to 2 million Dinar.
  2. Contribution up to 30% for projects with costs more than 2 million Dinar.
• Premium related to increased added value and competitiveness up to 15% of the investment cost with a maximum limit of 1 million Dinar.
• Employability capacity premium as follows:
  1. Coverage for 3-10 years of employees' social charges
  2. Coverage for 1-3 years of 50% of employees wages up to 250 Dinar/ monthly salary
• Sustainble Development Premium that covers up to 50% of invesmtment components with a limit of up to 300,000 Dinar.
• Regional Development Premium depends on the area of the project:
  1. First group zones can be remunerated with up to 15% of the investment cost with a limit of 1.5 million Dinar.
  2. Second group zones can be remunerated with up to 30% of the investment cost with a limit of 3 million Dinar.

For projects classified under "projects of national interest" with investment cost more than 50 million Dinar and creating more than 500 jobs in 3 years from the project activity start day, the following incentives are allocated:

• Reduction of corporate tax base profits for maximum 10 years.
• Investment Premium with a maximum of up to 1/3 of the investment cost including the internal infrastructure works.
• State Participation in  infrastructure expenses.

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