Regulatory Alerts2005-07-18
Law No. 2005-56 of July 18, 2005 on the Spin-off of Economic Enterprises
Issued by the President of Tunisia on July 18, 2005, Law No. 2005-56 establishes the legal framework for corporate spin-offs by defining them as financial and technical assistance provided to internal or external promoters launching independent ventures. The legislation mandates that sponsoring enterprises guide these promoters through project development, financing, and initial operations while recording related expenses in detailed financial annexes. Furthermore, it introduces a new tax provision allowing enterprises to deduct spin-off-related expenditures from their taxable income within decree-prescribed limits, while granting promoters access to existing leave, delegation, and patent income regimes.
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