Free tool for foreign shareholders

Can your Tunisian subsidiary actually transfer its dividends?

Eight questions, two minutes. The right to transfer dividends abroad depends on how the foreign investment was documented when the money came in, not on the day you want to take it out. The check gives a green, amber or red verdict, the actions to take in order, and the list of documents your bank will ask for.

The three key points

Was the capital paid up by a foreign-currency transfer from abroad into an account with a Tunisian bank? Do you hold the bank certificates evidencing the import of the currency and its allocation to capital, for the initial contribution and for each increase? Are the shares held directly by the foreign shareholder, with no nominee arrangement through a Tunisian resident? A negative answer to any of these goes to the very right to transfer and must be examined with the bank before any distribution.

The five other checks

Capital increases and incorporated profits documented as foreign investment; shareholder loans covered by a written agreement and received in foreign currency through the bank; last year's accounts approved and the distribution decided in proper minutes; withholding tax on dividends paid, 10% under domestic law for a non-resident, with a residence certificate if a reduced treaty rate is applied; list of documents agreed in writing with the bank before the transfer request.

The transfer file: documents to gather

  • Up-to-date articles of association and extract from the national business register
  • Transfer advices and bank certificates evidencing the import of foreign currency: initial capital, increases, shareholder loans
  • Approved financial statements for the last year, with the statutory auditor's report where there is one
  • Minutes of the general meeting deciding the distribution
  • Proof of payment of the withholding tax
  • Tax residence certificate of the shareholder, if a reduced treaty rate is applied
  • Any additional document requested by the bank, confirmed in writing

See also: repatriating dividends, the full guide · subsidiary compliance check · tax advisory · request a proposal.