Tunisia

Tunisia currently prohibits the use and trading of cryptocurrencies. All activities related to virtual assets are considered illegal under the Central Bank of Tunisia (BCT) Circular 2018 and the Code of Currency Control. This means that engaging in crypto transactions, holding digital assets, operating exchanges, making payments with crypto, or mining cryptocurrencies is unlawful. Profits derived from such activities are not subject to taxation but are instead considered proceeds of crime and are liable for confiscation. Violations can lead to fines, asset seizure, and even imprisonment for up to five years. The Central Bank of Tunisia (BCT) is the primary authority enforcing this ban, overseeing the country's financial regulations. While the Ministry of Finance typically handles tax administration, there is no established tax framework for cryptocurrencies due to their prohibited status. Given the ban, there are no specific tax rules for cryptocurrencies. Individual income tax, capital gains tax, and corporate tax do not apply to crypto holdings or transactions because these activities are illegal. Similarly, Value Added Tax (VAT) is not levied on crypto transactions, as they are unlawful. There is no distinction between short-term and long-term gains, nor are there any exemptions or allowances for cryptocurrency activities. Specific crypto activities like staking, mining, Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs) are also prohibited. Therefore, any income or gains generated from these activities are not taxed. Mining rewards, for instance, are not subject to taxation, but equipment used for mining may be seized. Converting crypto to fiat currency or engaging in crypto-to-crypto swaps are likewise illegal and do not trigger taxable events, but rather expose participants to legal penalties. Due to the illegality of crypto, there are no reporting obligations for individuals or entities regarding crypto holdings or transactions. However, banks are required to report suspicious transfers that may be crypto-related to the Tunisian Financial Analysis Unit (CTAF). Tunisia is exploring potential reforms to its cryptocurrency stance. A draft bill for a licensing regime is currently under parliamentary review, aiming to establish a framework for virtual assets. This includes plans for FATF-compliant exchanges, a progressive capital gains tax, and income tax upon legalization. The timeline suggests a virtual asset framework by 2026, expansion of the existing fintech sandbox in 2026, pilot exchanges by 2027, and potential full retail access by 2028. There are also discussions about a low-rate corporate tax for tokenized bonds.