Tunisia – United States Tax Treaty
The Tunisia-United States tax treaty caps withholding on dividends at 20% for portfolio investors and 14% for qualifying direct investment, and interest at 15%. Royalty rates vary by category, from 10% on equipment to 15% on copyright. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 1 active treaties in Tunisia's network and one of 64 in United States's. The general dividend rate of 20% compares to a median of 20% across Tunisia's network and 15% across United States's.
Verified data
IRS Table 1 - Tax Rates on Income Other Than Personal Service Income (Rev. May 2023)
Withholding Rate Summary
Source: IRS Table 1 (Withholding Rates)| Income Type | Treaty Rate | Statutory Rate (United States) |
|---|---|---|
| Dividends (general) Portfolio investors | 20%saves 10% | 30% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 14%saves 16% | 30% |
| Interest Bank interest, bonds, loans | 15%saves 15% | 30% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 14% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 30% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (United States)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 20% applies to portfolio investors. A reduced rate of 14% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 30%.
Source: IRS Table 1 (Withholding Rates)
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 30% statutory rate. This represents a 15% reduction from the statutory rate.
Source: IRS Table 1 (Withholding Rates)
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 5 categories, with rates ranging from 10% to 15%.
Source: IRS Table 1 (Withholding Rates)
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are subject to 30% withholding.
Source: IRS Table 1 (Withholding Rates)
Comparative Context
🇹🇳Tunisia's Network
Among Tunisia's 1 active treaty partners, the 20% general dividend rate ranks 1st (median: 20%).
🇺🇸United States's Network
Among United States's 64 active treaty partners, the 20% general dividend rate ranks 57th (median: 15%).
| Partner | Rate |
|---|---|
| Venezuela | 15% |
| Vietnam | 15% |
| South Africa | 15% |
| Tunisia (this treaty) | 20% |
| Turkey | 20% |
| Israel | 25% |
| India | 25% |