The demand of cryptocurrency in Tunisia has grown despite the fact that the government has prohibited the open-market dealing in the country completely. Bitcoin and other digital assets have only been available in informal peer-to-peer networks since 2018, although local developers are still in the regulatory sandbox at the Central Bank of Tunisia (BCT).
The investors and start-ups, however, should be aware of what is already on the table and the tax regime that will be implemented now that legalisation is taking place. The management of risk therefore needs to understand the status quo of how crypto is being treated by the BCT, the Financial Market Council (CMF) and the National AML Commission (CTAF).
Tax Authorities and Regulations
Lead agencies: The BCT is responsible for the monetary policy, enforces the 2018 directive that criminalised unauthorised virtual-money transactions and operates the fintech sandbox. The CMF would license any future security-token offering and the CTAF would regulate all financial institutions with respect to anti-money-laundering.
Central laws: The BCT circular of 2018 bans trading, exchange services and crypto-payments. The code of currency control in Tunisia allows fines and up to five years in jail in case of violations.
Asset classification: Cryptocurrency is not yet classified as a property or currency under the Tunisian law as far as taxation is concerned since the trading is illegal. Proposals drafted in parliament envisage that it would be categorized as a form of virtual asset and would be compelled to have FATF travel-rule licensing once the ban is eased.
Categories of Crypto Taxation in Tunisia
Capital Gains Tax (CGT): The tax does not apply at the moment. Profits are regarded as proceeds of a crime and are liable to confiscation.
Income Tax: Mining, staking or receiving the salary in crypto is an offence, and the system of income-taxation is not introduced yet.
Value-Added Tax (VAT): VAT will not apply because crypto transactions are unlawful.
Other Taxes: Digital assets do not appear in any wealth, inheritance or stamp-duty laws. The future draft bills promise standard income-tax treatment on the commencement of licensing.
Tax Rates & Brackets (As It Stands)
CGT rate: 0% in law, but any realised profit is subject to being confiscated under the penalty of currency-control.
Personal income-tax rates on crypto: Zero till the ban exists.
Corporate tax: None; companies are prohibited to account crypto in their balance sheet.
Future incentives: Evidence exists of a commitment by policymakers that reduced CGT would be used on sandbox licensees in the event of partial legalisation.
Crypto Transactions and Tax Treatment
Buying or selling crypto: It is a criminal offense; the profits are not legally taxable.
Mining & staking: The introduction of ASICs or conversion of block rewards to dinar is a violation of the 2018 order.
Salary or payment of business: Wage payment or receipt in crypto is illegal and increases AML red flags.
Crypto-to-crypto exchanges: They are illegal because transfers of virtual-money are illegal.
DeFi lending / yield farming: Sandbox is allowed under the supervision of BCT only; any open activity is not allowed.
NFT minting and sales: Limited to closed-loop sandbox pilots only; sales on the open market are subject to the same penalties as other tokens.
Crypto Reporting and Compliance
They cannot use any standard forms of taxes to declare the gains on the digital assets since trading is illegal. The participants of the sandbox will however be obliged to:
(i) Enrol their project with the BCT;
(ii) Maintain full KYC files;
(iii) Document all on and off-chain transactions; and
(iv) Submit Suspicious Transaction Reports to the CTAF.
Banks will be required to prohibit transfers that are related to foreign exchanges and report potential crypto activity. Should Tunisia approve the pending bill on licensing, individual traders will declare profits on the end-year form known as the Impot sur le Revenu and the companies will amend their corporate-tax returns called the IS. Penalties will be charged on unfiled declarations in the form of back-tax, late-payment interest and administrative penalties.
Tax Deductions and Exemptions
At the moment, there are no crypto incomes that can be deducted because they are not legal. In the bill introduced by the parliament, there would be standard deductions of expenses incurred in business to the exchange license-holders including depreciation of hardware, electricity used in licensed mining, and cybersecurity costs. It also makes it possible to be able to offset capital losses against future gains within the next three years as is the case in Tunisia under its rules on equity-taxation. Loss carry-backs are not in the picture. Those investors who exit the sandbox in Tunisia and go offshore can avail of foreign-source-income exemptions provided they meet a 183-day non-residency test and have credible evidence of tax residence outside of the country.
Enforcement and Non-Compliance Penalties
The BCT is cooperating with commercial banks, mobile-money operators and customs in order to monitor crypto-related flows. Exchanges are obliged to geo-block Tunisian IP addresses otherwise they receive a cease-and-desist letter. There are also local authorities that monitor blockchain explorers and social-media in the case of any large peer-to-peer trades. When the investigators suspect a resident of a wallet, they may take the device and require the delivery of the personal key and block any associated bank accounts. Punishments are growing fast:
Unauthorised trading or mining: a fine of not more than TND 50,000, and imprisonment of one to five years.
Carrying out an illegal exchange or ICO: bigger fines and the revocation of the business-licence.
Tax evasion after legalisation: expected surcharge of 25 per cent of the unpaid taxes, late-interest and possible criminal referral in case of amounts above TND 100,000.
The Tunisia AML laws prohibit repeat offenders to travel and their assets are forfeited. Companies which understate volumes at sandbox will lose their testing license and may be black-listed in the future fintech programmes.
Prospects of Crypto Taxation in Tunisia
Parliamentary committees are optimistic that they will have a virtual-asset framework by the year 2026. The draft includes conditional exchange licences, on-shore KYC as well as progressive CGT regime with equity gains. Regulators also have low-rate corporate tax on issuance of tokenised-bonds to promote green-finance projects. It is expected to be phased along with sandbox expansion in 2026, pilot exchanges in 2027 and full retail access in 2028.
Conclusion
Tunisia remains one of the most restrictive crypto jurisdictions in the world, yet its sandbox and draft law are a sign of change. Nowadays, any profit obtained with the help of crypto can be seized and be punished as a crime, and, so, it is essential to follow the regulations of the BCT. Until the matter of trading is legalized, the stakeholders should maintain written documentation, monitor the changes in the legislation and stay within the sandbox boundaries. The exposure to back-tax, fines and jail sentences will be minimized by a specialist tax advisor, especially when the opening of the license takes place. It will leave investors and innovators in a strong place once Tunisia, finally, brings an end to prohibition and legalizes a controlled market.
FAQs
1. Is Bitcoin legal to buy in Tunisia?
No. Any cryptocurrency is not allowed to be retailed or sold.
2. May I keep a wallet of my own never trading?
Possession is technically illegal but it is usually applied when there is a transaction.
3. How can I experiment with blockchain?
Make an application to the BCT sandbox, comply with strict KYC standards and operate within the volume limits.
4. What are the consequences of conducting a local exchange without a licence?
Fines up to several thousands of dinars, seizure of property and imprisonment up to five years.
5. When will Tunisia submit a formal tax code on crypto?
It is intended that draft legislation will be available by 2026- 2027, and CGT and income-tax rules will probably soon after, when trading is authorized.
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