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Investing in the Bizerte and Beja Dairy Chain

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Investing in the Bizerte and Beja Dairy Chain BIZERTE Investing in the Bizerte and Beja BÉJA Dairy Chain Keys to success TUNISIE OPPORTUNITIES CONTACTS PARTNERSHIPS INCENTIVES Are you an entrepreneur or an investor in the dairy chain? Are you interested in Tunisia? This guide is for you. Designed as a toolbox, it provides an overview of the general conditions for investment in Tunisia, the specific arrangements for the Bizerte and Beja dairy chain, as well as information on support organisations and other useful contacts. It presents about 20 concrete investment and partnership opportunities proposed by local stakeholders. This publication has been produced as part of LACTIMED project with the financial assistance of the European Union under the ENPI CBC Mediterranean Sea Basin Programme. The contents of this document are the sole responsibility of ANIMA Investment Network, LACTIMED coordinator, and the Bizerte Competitiveness Pole (PCB), a partner of the project, and can under no circumstances be regarded as reflecting the position of the European Union or of the Programme’s management structures. LACTIMED aims to foster the production and distribution of typical and innovative dairy products in the Mediterranean by organising local value chains, supporting producers in their development projects and creating new markets for their products. The project is implemented under the ENPI CBC MED Programme, and is financed, for an amount of EUR 4.35 million, by the European Union through the European Neighbourhood and Partnership Instrument. The European Union is made up of 28 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. The 2007-2013 ENPI CBC Mediterranean Sea Basin Programme is a multilateral Cross-Border Cooperation initiative funded by the European Neighbourhood and Partnership Instrument (ENPI). The Programme objective is to promote the sustainable and harmonious cooperation process at the Mediterranean Basin level by dealing with the common challenges and enhancing its endogenous potential. It finances cooperation projects as a contribution to the economic, social, environmental and cultural development of the Mediterranean region. The following 14 countries participate in the Programme: Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, Lebanon, Malta, Palestinian Authority, Portugal, Spain, Syria, Tunisia. The Joint Managing Authority (JMA) is the Autonomous Region of Sardinia (Italy). Official Programme languages are Arabic, English and French. © Copyright LACTIMED 2015. No part of this publication may be reproduced without express authorisation. All rights reserved for all countries. Electronic version available on: www.lactimed.eu . Lead author: Jeanne Lapujade, ANIMA Investment Network; . Other contributors to this brochure: - Mahjouba Zaiter, Bizerte Competitiveness Pole (PCB); - All project promoters mentioned in the part “Investing and forming partnerships” of this brochure. Official sources used for the part “An attractive investment framework”: - Foreign Investment Promotion Agency (FIPA-Tunisia); - Agency for the Promotion of Industry and Innovation (API); - Agricultural Investment Promotion Agency (APIA); - Agricultural National Bank (BNA); - Ministry of Economy and Finance of Tunisia. 1 ARTIFICIAL INSEMINATION SERVICES ................................................................................................ 14 VETERINARY ASSISTANCE SERVICES ............................................................................................... 14 BREEDING CENTRE FOR PREGNANT EWES (YEARLINGS) AND SPAWNING RAMS..................... 15 HAY STORAGE UNIT .............................................................................................................................. 15 DEVELOPMENT OF HYDROPONIC FORAGE UNITS AND BREEDING .............................................. 16 MILK COLLECTION CENTRE ................................................................................................................. 17 EXTENSION OF A PLANT FOR THE PRODUCTION OF LIVESTOCK CONCENTRATE FEED .......... 18 PRESSED CHEESE PRODUCTION UNIT .............................................................................................. 18 PRODUCTION UNIT OF SHEEP AND COW’S MILK CHEESES ........................................................... 19 GOAT BREEDING AND PRODUCTION OF RICOTTA, FRESH AND MATURED CHEESE ................. 20 EXTENSION OF A PRODUCTION UNIT OF SHEEP'S MILK CHEESE AND OTHER PRODUCTS ..... 21 ICE CREAM AND SORBETS PRODUCTION UNIT ................................................................................ 22 UNIT FOR THE PRODUCTION OF FOOD CONTAINERS, POTS ET BUCKETS IN « IML » ............... 22 2 3 Investing in Tunisia means benefiting from multiple advantages: . a competitive, outward-looking economy with an attractive domestic market; . young, qualified and affordable human resources; . a functional, continuously improving infrastructure; . a climate favorable for quality resources availability over most of the year; . a clear, transparent and investment-friendly legal framework. Indeed, the Tunisian legislation ensures: . the freedom of investment in most sectors; . simple establishment procedures; . the protection of intellectual property; . flexible recruitment procedures; . import and export facilitation; . a real legal protection for investors; . free repatriation of profits and real net proceeds from sale of capital invested in foreign currency for foreign investors; . the current convertibility of the Tunisian dinar. The Investment Incentive Code is the main reference. It establishes the scheme for project creation and incentives for investments in Tunisia by foreign and Tunisian promoters, both resident and non-resident, as well as for joint ventures. It lays down a set of financial and tax benefits and covers the majority of sectors. Foreign investors can hold up to: . 100% of the project capital without authorization in most sectors; . 66% of the capital in the agricultural sector (land use is subject to a long-term lease: 25 years for State land and freely determined by the parties for private land); . 49.99% of the shares in the framework of an equity participation in a Tunisian firm in business. The tax system includes a single tax on personal income and corporate profits. Corporate tax: 25% as a general rule, 10% for agricultural companies, handicrafts and small trades and 35% for a few limited areas; . VAT: reference rate of 18% (6% for sensitive products, 12% for certain equipment and services); . Tax on dividends: reduced rate of 5%; . 69 tax treaties to avoid double taxation; . Tariff dismantling on industrial products imported from the European Union: abolition of customs duties on equipment, inputs and semi-finished products, reduction of duties on other products. The Code provides common incentives for all investments: . Relief on income/ profits reinvested to a maximum of 35% of taxable income/ profits; . Exemption from customs duties on capital goods with no locally manufactured counterparts; . Suspension of VAT on imports of capital goods not manufactured locally for greenfield projects and other investment operations. Additional tax and financial incentives are also laid down for investments in regional development areas. The Code divides the Tunisian territory into 4 types of areas which benefit from degressive advantages: . Priority regional development areas (in green on the map); . Second group regional development areas (in dark blue on the map); . First group regional development areas (purple on the map); . Areas with no incentives (in light blue on the map). The Governorate of Bizerte is divided as follows: . Priority areas: Sejnane; . Areas of the second group: Djoumine, Ghezala . Areas with no incentives: Bizerte Nord, Bizerte Sud, El Alia, Ghar al Milh, Mateur, Menzel Bourguib, Menzel Jemil, Ras Jebel, Tinja, Utica, Zarzouna. The governorate of Beja is divided as follows: . Priority Areas: Nefza, Amdoun; . Areas of the second group: Beja Nord, Beja Sud, Testour, Teboursouk, Goubellat, Tibar ; . Areas of the first group: Medjez el Bab. Summary of the tax and financial incentives in the regional development areas Priority areas Areas of the 2nd group Areas of the 1st group Exemption from tax on the Total Total Total reinvested earnings and income 100% during the first 10 years and no more than Deduction of earnings or 100% for the first 10 years 50% over the course of the 100% for the first 5 years income from the activity next 10 years Contribution to the Fund for the Promotion of Social Housing Permanent exemption Permanent exemption None (FOPROLOS) Professional Training Tax Permanent exemption Permanent exemption None Coverage of the employer's 100% for 5 years and contribution to the social decreasing for the following security scheme (CNSS) 100% For the first 10 years 5 years (from 80% to 20 %) 100% for 5 years Financial benefits in the form of subsidies, including working 25% of the project cost up to 15% of the project cost up to 8% of the project cost up to capital capped at 10% of project a max of 1.5 M TND a max of 1M TND a max of 500,000 TND cost Coverage of infrastructure costs in the approved and developed 85% 75% 25%
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