Circular to Approved Intermediaries No. 2020-03 of February 4, 2020

CIRCULAR TO APPROVED INTERMEDIARIES No. 2002-03 of February 4, 2020 Subject: Business Travel Allowances.

The Governor of the Central Bank of Tunisia; Pursuant to the Exchange and Foreign Trade Code promulgated by Law No. 76-18 of January 21, 1976, consolidating and codifying the legislation governing foreign exchange and trade relations between Tunisia and foreign countries, as amended by subsequent texts and notably the decree-law No. 2011-98 of October 24, 2011; Pursuant to Law No. 2016-35 of April 25, 2016 establishing the status of the Central Bank of Tunisia; Pursuant to Decree No. 77-608 of July 27, 1977 setting the implementation conditions for the aforementioned Exchange and Foreign Trade Code, as amended and supplemented by subsequent texts and notably Government Decree No. 2017-393 of March 28, 2017; Pursuant to Circular to Approved Intermediaries No. 2016-08 of December 30, 2016 regarding business travel allowances; Pursuant to Circular to Approved Intermediaries No. 2016-10 of December 30, 2016 regarding the authorization to export foreign currency in banknotes and by checks; Pursuant to Opinion No. 03 of the Control and Compliance Committee dated January 27, 2020,

Decides: Article 1. The provisions of Articles 2, 3 and 4, the first paragraph of Article 5, the first dash of Article 5, Articles 8, 9 and 10, the second paragraph of Article 11, Articles 13, 15 and 17, the second paragraph of Article 19, and Article 24 of Circular No. 2016-08 of December 30, 2016 regarding business travel allowances are repealed and replaced as follows:

« Article 2 (new) - Business travel allowances consist of transfer rights in dinars fixed in accordance with this circular and include the "Exporters" business travel allowance, the "Markets Realizable Abroad" business travel allowance, and the "Other Activities" business travel allowance. These allowances are intended to cover stay expenses incurred for business trips related to their professional activities and may in no case be used to cover expenses other than stay costs. »

« Article 3 (new) - Resident natural and legal persons making exports of goods or services may open business travel allowance files for "Exporters" with approved intermediaries. »

« Article 4 (new) - The amount of the "Exporters" business travel allowance is fixed at twenty-five percent (25%) of repatriated export revenues from goods or services, arising from the activity for which the allowance file was opened, with a ceiling equal to five hundred thousand dinars (500,000 TND) per calendar year. The registration of the transfer right for the "Exporters" business travel allowance takes place upon collection of export proceeds, no later than three months from the date of collection. »

« Article 5 first paragraph (new) - Export revenues used as the basis for calculating the "Exporters" business travel allowance must be supported by final invoices issued in accordance with current regulations as well as proof of corresponding payment, and consist of: »

« Article 5 first dash (new) - Export revenues in foreign currency or convertible dinars from non-residents. These revenues include hoteliers' income from their non-resident clients, including those collected via international payment cards. »

« Article 8 (new) - Resident natural and legal persons not holding "Exporters" or "Markets Realizable Abroad" business travel allowances, who exercise a professional activity requiring foreign travel and are listed in Annex No. 2 to this circular, may open "Other Activities" business travel allowance files with approved intermediaries. »

« Article 9 (new) - The amount of the "Other Activities" business travel allowance is fixed at:

• eight percent (8%) of the previous year's declared turnover excluding taxes, with a ceiling of fifty thousand dinars (50,000 TND) per calendar year, for activities listed in numbers 1 to 25 of the list in Annex No. 2;
• four hundred thousand dinars (400,000 TND) per calendar year, for the activity listed in number 26 of the aforementioned list. »

« Article 10 (new) - When opening or renewing this allowance, if the tax declaration showing turnover excluding taxes cannot be provided at the beginning of the calendar year, the approved intermediary is authorized to grant advances up to fifty percent (50%) of the transfer rights from the previous year, calculated based on the turnover excluding taxes indicated in the final tax declaration certified by the tax authority for the year preceding the current year. The allowance holder must, in this case, submit the final tax declaration for the relevant year to the domiciled approved intermediary no later than July 15 of that year. Failing submission within this period, the approved intermediary must immediately suspend the use of the allowance and notify both its client and the Central Bank of Tunisia. The use of the allowance may be resumed when the final tax declaration for the relevant year is subsequently provided to the approved intermediary, provided that the amount of advances granted to the allowance holder is fully covered by the transfer rights for the current year, calculated based on the required tax declaration. If advances under the first paragraph exceed the current year's transfer rights, the approved intermediary must immediately suspend the allowance, take necessary measures to deactivate international payment cards linked to the allowance, and notify its client and the Central Bank of Tunisia. In this case, the use of the business travel allowance may only be resumed upon decision by the Central Bank of Tunisia. »

« Article 11 second paragraph (new) - The allowance must, in this case, be opened upon presentation of a copy of the deposit certificate or approval or specifications required for exercising an activity regulated by a law organizing the sector, statutes setting a minimum capital of two hundred thousand dinars (200,000 TND), an extract from the national business register, and a bank certificate proving the mobilization of at least twenty-five percent (25%) of the equity funds registered in the project's financing plan. »

« Article 13 (new) - Subject to the provisions of the first paragraph of Article 12 quarter, any resident natural or legal person may hold only one business travel allowance. The holder of a business travel allowance may, however, convert the regime of this allowance after closing the file for which they are already a beneficiary. »

« Article 15 (new) - The opening by the approved intermediary of a business travel allowance file occurs upon submission of the documents specified, as applicable, in Annex No. 4 to this circular. The supporting documents to be provided to the approved intermediary for opening business travel allowance files and issuing these allowances must be kept in accessible files for control purposes. »

« Article 17 (new) - The use of business travel allowances granted to companies is exclusively by their executives, employees, and board members whose names appear on the list attached to the commitment referred to in Article 14 of this circular. Allowances granted to natural persons may only be used by their holders. »

« Article 19 second paragraph (new) - Cash transfers require the domiciled approved intermediary to issue an authorization for foreign currency export in the form of foreign banknotes and deliver it to the beneficiary under the conditions set forth in Circular No. 2016-10 of December 30, 2016 referenced above. The foreign currency amount to be physically exported may not exceed the equivalent of thirty thousand dinars (30,000 TND) per trip and per beneficiary. To this end, the foreign currency export authorization in banknotes issued by approved intermediaries to beneficiaries of transfers under these allowances may not cover an amount exceeding the ceiling fixed by this paragraph. »

« Article 24 (new) - Approved intermediaries prepare monthly statements of business travel allowances opened on their books, in accordance with the model set out in Annex No. 5 to this circular. Approved intermediaries submit to the Central Bank of Tunisia via the Data Exchange System (SED) the monthly statements of business travel allowances opened on their books, as well as lists of persons eligible for transfers under these allowances, no later than the 15th day of the month following those to which the statements relate. These declarations must be submitted to the Central Bank of Tunisia in accordance with the technical guide made available to approved intermediaries and downloadable via the Data Exchange System (SED). »

Article 2. A section 2 bis titled "Markets Realizable Abroad Business Travel Allowances" is added to Circular No. 2016-08 of December 30, 2016 regarding business travel allowances, comprising Articles 12 bis, 12 ter, 12 quarter, and 12 quinto as follows:

« SECTION 2 BIS: MARKETS REALIZABLE ABROAD BUSINESS TRAVEL ALLOWANCES Article 12 bis - Resident natural and legal persons who have concluded market contracts for studies, design, works, monitoring, control, and other services with a client established outside Tunisia may open "Markets Realizable Abroad" business travel allowance files with approved intermediaries. The file is opened by the approved intermediary upon presentation of a copy of the duly signed market contract. Article 12 ter - The amount of the "Markets Realizable Abroad" business travel allowance is fixed at fifteen percent (15%) of the portion of the market contract price payable in convertible foreign currency for which the allowance is requested. The registration of transfer rights occurs upon submission to the approved intermediary of a copy of the completed foreign market contract, no later than three months from the date of conclusion of the market contract. Article 12 quarter - Persons referred to in Article 12 bis may combine the benefit of the "Exporters" business travel allowance and the "Markets Realizable Abroad" business travel allowance. In this case, both allowances must be domiciled with a single approved intermediary. Foreign currency revenues already used to calculate transfer rights for one of the two allowances mentioned in the first paragraph of this article may, under no circumstances, be included in foreign currency revenues admitted for calculating transfer rights for the other allowance. Article 12 quinto - The holder of a "Markets Realizable Abroad" business travel allowance must, after the expiration of the final deadline set in the contract for receiving payments admitted for calculating transfer rights under this allowance, submit to the Central Bank of Tunisia copies of supporting documents for these payments within a maximum period of one month from the date of the last credit notice received. »

Article 3: Annexes No. 2, 3, 4 and 5 to Circular to Approved Intermediaries No. 2016-08 of December 30, 2016 regarding business travel allowances are replaced by the attached annexes. Article 4: The provisions of Articles 23 and 25 of Circular to Approved Intermediaries No. 2016-08 of December 30, 2016 regarding business travel allowances and its Annexes No. 6 and 7 are repealed. Article 5: This circular enters into force from the date of its publication.

The Governor Marouane EL ABASSI

ANNEX NO. 2 TO THE CIRCULAR TO APPROVED INTERMEDIARIES No. 2016-08 OF 30/12/2016 List of activities enabling persons exercising them to be eligible for the "Other Activities" business travel allowance

1. Liberal professions organized under a national order or council (lawyers, doctors, pharmacists, certified accountants, architects, …).
2. Studies and consulting (engineering offices, control offices, consultants, …).
3. Information technology services.
4. Real estate development.
5. Public works and construction.
6. International road freight transport.
7. Assistance by foreign airlines.
8. Ship consignments.
9. Freight forwarders.
10. Cinematographic production and distribution.
11. Printing and publishing.
12. Advertising and communication.
13. General insurance agency.
14. Insurance brokerage.
15. Travel agencies with "A" license.
16. Management of classified restaurants.
17. Management of golf courses and marinas.
18. Higher education.
19. Initial vocational training, as provided by Law No. 2008-10 of February 11, 2008 on vocational training.
20. Clinics.
21. Analysis laboratories.
22. Senior technician activities in anesthesia and resuscitation, obstetrics, psychiatry, physiotherapy, occupational therapy, speech therapy, optometry, and dental prosthesis.
23. Industrial activities exercised by legal persons whose turnover excluding taxes in the calendar year preceding the year of benefit for "Other Activities" business travel allowance is at least five hundred thousand dinars (500,000 TND).
24. Any other activity exercised by a legal person that has, in the calendar year preceding the benefit year for "Other Activities" business travel allowance, imported goods amounting to at least two hundred thousand dinars (200,000 TND), justified by import documents bearing customs clearance.
25. Financial services provided by legal persons other than banks (insurance, leasing, factoring, stock exchange activities, and stockbroking…).
26. Banking activities.

ANNEX NO. 3 TO THE CIRCULAR TO APPROVED INTERMEDIARIES No. 2016-08 OF 30 DECEMBER 2016 Approved Intermediary: …………………… Code: ……………………. Branch: ……………………………. Code: ……………………. Commitment regarding the business travel allowance I, the undersigned (Name and surname): ……………………………. Identification Code 1: ……………………. Address: ……………………………. Acting in my capacity as 2: ……………. Tax Identification Code……………... Certifies, under penalty of law, that:

• I do not hold another business travel allowance.
• I do not hold a "Resident Natural Person" account.
• Only executives, employees, and board members whose names, surnames, titles, and identification codes appear on the attached list may benefit from transfers under this business travel allowance.
• Any modification to this list will be brought to your attention.
• I will repatriate unused balances and return them in dinars within the deadlines prescribed by current foreign exchange regulations. Made at: ……………, on ………….

Stamp and authorized signature 1 National ID (CNI) or Residence Permit (CS) 2 - If representing a legal person, indicate function.

• If acting as a natural person for own account, indicate activity

ANNEX NO. 4 TO THE CIRCULAR TO APPROVED INTERMEDIARIES No. 2016-08 OF 30 DECEMBER 2016 Common documents for opening a business travel allowance file 1- For natural persons:

• copy of the national identity card (CNI);
• copy of the residence permit (CS) for resident foreign nationals;
• copy of the professional card for liberal profession holders;
• copy of the tax identification card;
• copy of the extract from the national business register. 2- For legal persons:
• copy of registered statutes and list of shareholders or partners;
• copy of the extract from the national business register;
• copy of the tax identification card;
• copy of the national identity card or residence permit for natural persons authorized to manage the legal person's accounts.

ANNEX NO. 5 TO THE CIRCULAR TO APPROVED INTERMEDIARIES. No. 2016-08 OF 30 DECEMBER 2016 ANNUAL STATEMENT "BUSINESS TRAVEL ALLOWANCE" (BTA) Approved Intermediary: ……….......... Code:……………………. Allowance Holder:.................................................. Branch: …………………………………… Code:…………………. Name or denomination:.................................................... Identification Code: (2) ……………………………………. Type of Business Travel Allowance: // (1) Address: ……………………………………………………… Year of operation: from //// //// to //// / //_/ Application No. and date F2 (if applicable):…….……… Turnover excluding taxes:.............................…(3) Date, signature and stamp of the approved intermediary

(1)- Enter '1' for BTA "Exporters" and '2' for BTA "Markets Realizable Abroad" and 3 for BTA "Other Activities". (2)- Enter 'D' (for tax ID number), if not 'C' (for National Identity Card), if not 'S' (for Residence Permit). (3) -Turnover excluding taxes declared to the Tax Administration for the previous year (regarding BTA "Other Activities"). (4)- If credit operation, specify: 'RAP' for repatriations, 'RAV' for retrocessions following trip cancellation, 'RRV' for retrocessions of unused balances after a trip, 'MOC' for the complementary amount authorized by CBT. If debit operation, specify: - Travel expenses followed by: 'BBA' for banknotes, 'VIR' for transfers, 'CAP' for international payment cards. (5)- For BTA "Markets Realizable Abroad", enter '0' regarding advance funding of the BTA, while for BTA "Exporters", enter '1' for foreign currency received from abroad, '2' for convertible dinar payments, '3' for Tunisian dinar payments by international trade companies and fully resident exporting companies and resident companies in economic activity parks, '4' for Tunisian dinar payments by resident travel agencies to hoteliers. '5' for Tunisian dinar payments to export advisors. (6) - Calculated in accordance with current foreign exchange regulations. (7)- Used to calculate transfer rights under the allowance regime. (8)- C (National Identity Card) or S (Residence Permit).

DATE DESIGNATION (4) CREDIT DEBIT CUMULATED TRANSFER RIGHTS AMOUNTS OF CUMULATED TRANSFERS BASE FOR CALCULATING TRANSFER RIGHTS (7) BENEFICIARIES OF TRANSFERS AMOUNT ORIGIN OF FUNDS (5) AMOUNT COUNTRY IDENTIFICATION CODE (8) NAMES AND SURNAMES TYPE NUMBER