What is the expense reimbursement policy in Tunisia?

This article explains how employees can request reimbursement for business‑related expenses in Tunisia, including mileage, travel costs, per diems, documentation requirements, and tax treatment. To remain non‑taxable, expenses must be reasonable, business‑related, and properly documented in accordance with Tunisian tax rules.

1. Travel & Mileage (Use of Personal Vehicle)

Mileage Reimbursement

Tunisia does not publish a statutory or government‑mandated per‑kilometre reimbursement rate for business use of personal vehicles.

• Employers typically set an internal per‑km ratebased on:
  • Fuel prices
  • Vehicle operating costs
  • Market practice
• Reimbursement applies only to business travel (not commuting between home and the regular workplace).

Tax Treatment

To remain non‑taxable, mileage reimbursement must:

• Reflect actual business travel costs, and
• Be supported by a complete mileage log.

Mileage Log Requirements

Employees must submit a mileage log including:

• Date of travel
• Start and end locations
• Odometer readings (start and end)
• Business purpose
• Total kilometres travelled

2. Parking, Tolls & Fuel

• Parking fees, tolls, and fuel must be claimed separately from mileage.
• These costs are not included in the per‑km allowance.
• Official receipts (factures) are required for deductibility.

Expenses without valid receipts may be denied or treated as taxable salary.

3. Business Travel Rules & Reasonableness

Tunisia does not impose explicit statutory caps on business travel expenses. However:

• Expenses must be:
  • Necessary
  • Reasonable
  • Directly linked to business activity
• Excessive or personal‑use expensesmay be:
  • Rejected, or
  • Treated as taxable income for the employee.

Travel should follow internal approval requirements before being incurred.

4. Transportation & Accommodation

The following may be reimbursed when business‑related and supported by documentation:

Transportation

• Air, train, bus, tram, taxi/cab
• Rental cars (with business justification)

Conditions:

• Receipts or invoices must be provided
• Economy class is generally expected unless a business justification supports an upgrade

Accommodation

• Hotels or business lodging
• Invoice or receipt required

5. Invoicing & Documentation Requirements

To be deductible for the employer and non‑taxable for the employee, receipts or invoices should include:

• Vendor name
• Tax ID / Matricule Fiscal
• Date of purchase
• Description of goods or services
• Amount paid with VAT breakdown

Missing or incomplete documentation may result in the reimbursement being treated as taxable income.

6. Examples of Non‑Taxable Reimbursable Expenses

With proper documentation, the following are generally reimbursable and non‑taxable:

• Business travel (airfare, train, bus, taxi)
• Hotel and accommodation
• Meals during business travel
• Parking and tolls
• Mileage (reasonable and documented)
• Work‑related equipment or supplies

7. Per Diems (Daily Allowances)

Tunisia does not publish national per‑diem rates.

Tax Treatment

Per diems are generally taxable, unless:

• They strictly reflect actual business‑travel meals and incidental costs, and
• Travel dates and business purpose are clearly documented.

Employers must define internal per‑diem amounts and apply them consistently.

Per diems must not be combined with meal receipts for the same period.

8. Entertainment, Gifts & Hospitality

Entertainment expenses are deductible and non‑taxable only if they are:

• Directly related to business development
• Reasonable in value
• Supported by proper invoices

Expenses that provide a personal benefit, or are excessive in nature, may be treated as taxable income.

9. Wellness & Personal Expenses

Tunisia does not treat the following as tax‑free business expenses:

• Medical expenses
• Gym memberships
• Yoga or fitness classes
• Therapy or wellness services
• Swimming or recreational activities

These are generally considered taxable benefits, unless strictly required for employment (which is rare).

10. VAT & Recordkeeping

• VAT in Tunisia typically applies at 7% or 19%, depending on the category.
• VAT must be properly shown on invoices to be deductible.

Record Retention

• Companies should retain expense documentation for at least 5 years in case of tax audits.

11. Submission & Compliance Rules

• All expenses must be directly connected to company operations
• Expenses must be reasonable and supported by receipts
• Without receipts, reimbursements are treated as taxable salary
• Mileage logs are mandatory for vehicle use
• Expenses should be submitted within company deadlines (commonly within 30 days)