Regulatory framework

It is a savings method in securities initiated by the law n°99-92 issued on August, 17th, 1999 and related to the relaunch of the Financial Market.

The decree N°99-2773 of December, 13th, 1999 sets the conditions for opening, management and use of amounts and stocks kept on the stocks ISA.
 

Advantages of the stocks ISA account

Besides of the possibility to accumulate savings in securities, the customer can benefit through this kind of account from a reduction in the tax base equal to 100% of the payments amount that do not overpass 100.000 TND per year. In addition, the amount of the reduction should not result in a tax lower than the fixed minimum limit of 60% from the tax amount before the reduction. This could be proved upon presentation of a certificate issued by institution with which the stocks ISA account is opened (bank or market intermediates).

The owner of the account can seize opportunities and either buy or sell securities available on the account.

The beneficiary can, during the blocking period, dispose of the income generated by the account (dividends, interests on treasury bills, profits from share deals and any other income generated from the account).
 

Authorized bodies to open and manage stocks ISA accounts

Stocks ISAs could be opened at banks and market intermediaries.
 

Beneficiaries

Any salaried or retiree private individuals, those practicing a liberal profession under the current system and physical persons making profits from non commercial activities whose net tax base is equal to 70% of the gross income can benefit from tax advantages related to stocks ISA account.

In addition, physical persons who make industrial and trade incomes and determine their net income subject to taxes on the basis of simplified bookkeeping requirements can also benefit from deductions on funds deposited in stock ISA accounts.

However, persons subject to flat-rate tax system that fall into the category of industrial and trade incomes cannot benefit from these deductions.

Nevertheless, private individuals subject to flat-rate scheme and who generate incomes from goodwill transfer in a given year can benefit from tax advantages related to stocks ISA at the same year. 

Opening and management methods

The customer has to sign an agreement with a bank when opening a stock ISA account. It lasts for 5 years and could take one of the following forms:

• Opening agreement and stock ISA account management under mandate: The owner’s bank manages funds credited to the stocks ISA account according to the current legislation.
• Opening agreement and free stock ISA account management: The owner manages the credited funds by himself. However, the bank is authorized during the 5 last days of the 30 days period starting from the date of payment to automatically acquire stocks on behalf of the owner when the amount which is not allocated to securities purchases is more than 100 TND.

In any case, at least 80% of the credited funds to the stocks ISA account should be allocated to the acquisition of equities, treasury bills and shares of collective investment in securities using their assets as specified before. 

Payment and issue of attestations

Payments could be done on one or more installments during the year from January, 1st to December, 31th of the same year.

The bank issues an attestation to the employer or tax authority at every payment.
 

Transfer of stock ISA account

The owner can transfer his account to a bank or market intermediary and retain all related rights. 

Withdrawal of credited funds to stock ISA account

Funds withdrawal is not possible during the period of stock ISA account except for income generated by the account.

Any other withdrawal during the period of 5 years requires a tax clearance certificate.
 

Opening frequency of stock ISA account

Involved individuals could every year open a stock ISA account without any time limit.