WORLD TRADE
ORGANIZATIONG/SCM/N/38/TUN
G/SCM/N/48/TUN
G/SCM/N/60/TUN
G/SCM/N/71/TUN
1 June 2001
(01-2750)
Committee on Subsidies and
Countervailing MeasuresOriginal:  French
SUBSIDIES
New and Full Notification and Updating Notifications
under Article XVI:1 of GATT 1994 and
Article 25 of the SCM Agreement
TUNISIA
The attached communication, dated 21 May 2001, has been received from the Permanent
Mission of Tunisia.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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TABLE OF CONTENTS
Page
I. BENEFITS GRANTED FOR RE GIONAL DEV ELOPMENT ...........................................3
II. INCENTIVES FOR POLLUTION CONTROL AND ENVIRONMENTAL
PROTECTION..................................................................................................................... .....4
III. PROMOTION OF TE CHNOLOGY, RESEARCH AND DEVELOPMENT
AND ENERGY SAVING .........................................................................................................5
IV. ENCOURAGEMENT OF NEW ENTREPRENEURS, LIGHT INDUSTRIES
AND SMALL AND MEDIUM-SIZ ED ENTERP RISES ......................................................9
V. EXPORT PROMOTION .......................................................................................................12
VI. OTHER ADVANTAGES GRANTED UNDER LAW NO. 93-120 OF
27 DECEMBER 1993 PROMULGATING  THE CODE OF INVESTMENT
INCENT IVES..................................................................................................................... .....12
VII. NATIONAL UPGRADI NG PROGRAMME.......................................................................12
VIII. INDUSTRIAL COMPETITIVENESS DEVELOPMENT F UND (FODEC)....................13
IX. AMOUNTS OF THE I NCENTIVES GRANTED ...............................................................14G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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The following notification updates the initial notification by Tunisia and covers the three-year
period 1998-2000, pursuant to Article 25.1 of the Agreement on Subsidies and Countervailing
Measures.
I. BENEFITS GRANTED FOR REGIONAL DEVELOPMENT
1. Investment incentives to industrial activities taking place in regional development areas
comprise tax rebates, capital grants, payment by the government of employer contributions to the
statutory social security scheme and certain infrastructural expenses.
2. This notification covers the period 1998-2000.3. These incentives come within the overall regional development programme aimed mainly at
the central and southern regions of Tunisia, which ar e still at a disadvantage compared to the coastal
areas where economic activity is heavily concentrated.  They are designed to encourage the
establishment of small and medium-sized enterprises in these regions and reduce interregional
disparities.
4. The legal texts governing regional development incentives are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives;- Law No. 73-82 of 31 December 1973 establishing the Industrial Promotion and
Decentralization Fund (FOPRODI);
- Decree No. 99-483 of 1 March 1999 delimiting regional development areas;- Decree No. 94-539 of 10 March 1994 setting out the capital grants, lists of activities
and infrastructural and community facility projects eligible for regional development
incentives, as amended by Decree No. 99-486 of 1 March 1999;
- Decree No. 94-494 of 28 February 1994 setting out the procedures for payment by the
government of employer contributions to the statutory social security scheme, as
amended by Decree No. 95-1729 of 25 September 1995.
The areas for the promotion of regional deve lopment were designated in Annex I and I bis of
Decree No. 99-483 of 1 March 1999 on the basis of objective standards, principally the level of
economic and social development of the regions concerned.
5. Incentives to investments made in regional development areas take the following form:
(a) Deduction of all income or profits ploughed back into equity or used to increase the
initial capital of the enterprise from personal income tax or company tax subject to a
minimum tax payment;
(b) Deduction of income or profits from these investments from personal income tax or
company tax for the first ten years, and deduction of 50 per cent of such income or
profits for the following the ten years;
(c) Full deduction of profits reinvested in the company from net profits subject to
company tax;
(d) Waiver of contributions to the low-income housing development fund for the first five
years of operation;G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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(f) An investment grant of 15 or 25 per cent of the cost of the project, excluding working
capital, but including the cost of studies;
(g) A grant by way of government participation in the infrastructural expenditure
necessary to the implementation of the project. This grant could cover half to three-
quarters of expenditure on infrastructure within or outside the enterprise.
6. All investors in the manufacturing activities set out in Decree No. 94-492 of
28 February 1994, establishing the lists of activities by sector covered by the Code of Investment
Incentives, in regional development areas are eligible for the benefits foreseen in the Code.
The tax advantages mentioned in paragraphs 5a), b), c) and d) are accorded directly by the
responsible departments of the Ministry of Finan ce upon presentation of an investment declaration
certificate.
The capital grant and the grant by way of government participation in the cost of infrastructure
necessary for the project, described in paragraphs 5(f) and (g) above, are made available through the
Industrial Development and Decentralization Fu nd (FOPRODI), set up under Law No. 73-82 of
31 December 1973.
Any company wishing to benefit from these incentives must submit an application supported
by a project feasibility study.
Applications are studied by a committee chaired by a representative of the Ministry of
Industry and made up of representatives from the departments concerned as well as a representative ofthe profession.
The amounts of the grants are based on the investment project as approved by the Incentives
Committee.
Grants are made by decision of the Minister of Industry and are given only once, when the
investment is made.
The benefit of government payment of employer contributions to the statutory social security
scheme is granted by decision of the Minister of Social Affairs on the proposal of the above-
mentioned committee.
7. See Section IX.
8. See paragraph 5.9. The incentives accorded for the establishment of  enterprises in the regional development areas
do not lead to an expansion of exports by the beneficiaries.  These incentives are given only once, at
the time when the investment is made and not during the production phase.
II. INCENTIVES FOR POLLUTION CONTROL AND ENVIRONMENTAL
PROTECTION
Unchanged.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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III. PROMOTION OF TECHNOLOGY, RESEARCH AND DEVELOPMENT AND
ENERGY SAVING
A. RESEARCH AND DEVELOPMENT
1. The incentives provided for investments made by companies in research and development
comprise tax rebates for investors, exemption from certain duties and charges, capital grants andgovernment payment of certain expenditure on infrastructure and social security costs if young
graduates are employed.
2. This notification covers the period 1998-2000.3. These incentives fall under the national policy to promote industrial research and
technological advancement.  They are intended to encourage research and development withincompanies, the acquisition of technological know -how and technological development to enhance
productivity and foster relations between enterprises and research centres.
4. The legal texts governing incentives for research and development are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives;
- Decree No. 94-536 of 10 March 1994 establishing the amount and procedures for
according capital grants for research and development by enterprises in the industrial,
agricultural and fisheries sectors;
- Decree No. 94-494 of 28 February 1994 setting out the procedures for government
payment of employer contributions to the statutory social security scheme;
- Decree No. 94-1191 of 30 May 1994 establishing the conditions for benefiting from
the tax advantages provided for in Articles 37, 41, 42 and 49 of the Code of
Investment Incentives and granted for facilities for energy saving, research into,
production and marketing of renewable energy and research into geothermal energy,
equipment for pollution control and waste collection, processing and treatment and
research and development facilities;
- Decree No. 98-868 of 20 April 1998 establishing the conditions and procedures for
benefiting from government payment of employer contributions to the statutory social
security scheme provided for in Article 43 bis of the Code of Investment Incentives.
5. Investments made in research and development in the industrial sector benefit from:
(a) exemption from customs duties and waiver of VAT and the consumption tax on
purchases of capital goods needed for the investment;
(b) payment by the government of the following:
1 50 per cent of social security contributions over five years, for foreign personnel brought in
to optimize production capacities and for Tunisian nationals holding certificates of higher education;
2 100 per cent over five years of the employ er's contribution for graduate recruitment.
(c) a capital grant for research and development activities representing 20 per cent of
the cost, up to a limit of D 100,000, of the creation and technical testing ofprototypes, field experiments and the acquis ition of scientific laboratory equipmentG/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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needed for research and development projects, as well as 30 per cent of the cost, up
to a limit of D 25,000, of original studies necessary for developing new products or
processes.
This grant is charged to the budget of the State Secretariat for Scientific Research and
Technology.
6. All investments in industrial activities aimed at promoting research and development and
enterprise - research centre links are eligible fo r the benefits provided under the Code in respect of
research and development.
The tax advantages for the purchase of capital goods needed for research and development
projects are granted to enterprises by decision of the Minister of Finance, based on an opinion by the
committee sitting at the Ministry of Finance.
The capital grant for research and development mentioned in paragraph 5(c) is given by the
Secretary of State for Scientific Research and Technology on the basis of a performance contract
setting out the investment and financing plan, a list of the equipment needed, a timetable for the
operations to be carried out, the amount of the grant as well as the procedures for its disbursement and
the undertakings given by the beneficiary enterprise.
The incentive of government payment of contributions to the statutory social security scheme
mentioned in paragraph 5(b)1 is accorded by decision of the Minister of Social Affairs, on the proposal
of a committee chaired by the representative of the Ministry of Social Affairs.
Government payment of contributions to the statutory scheme mentioned in paragraph 5(b)2 is
accorded by decision of the governor having geographical jurisdiction, based on the opinion of an
advisory panel attached to the regional vocational training and employment offices.
7. See point IX.8. See paragraph 5.
9. The incentives granted for investments in research and development do not lead to the
expansion of exports by the beneficiary sectors.
B. 
PROMOTION OF TECHNOLOGY AND TECHNOLOGICAL EXPERTISE
1. Incentives for investments to acquire technology and technological expertise take the form of
direct financial assistance paid from the Industrial Competitiveness Development Fund (FODEC)
and payment by the government of human resource training costs.
2. This notification covers the period 1998-2000.
3. The objective of the aid is to help indu strial companies to finance the acquisition of
technology and technological know-how in order to increase their local content and boost productivity.
4. The legal texts governing incentives for the acquisition of technology and technological
expertise are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives;G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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- Law No. 90-111 of 31 December 1990 containing the Finance Act for the 1991 budget
year;
- Decree No. 94-540 of 10 March 1994 establishing the conditions and procedures for
benefiting from government payment of human resource training costs in connectionwith investment in technology;
- Decree No. 99-2741 of 6 December 1999 establishing the organisational and
operational regulations and working procedures of the FODEC.
5. The incentives granted to investments to acquire technology and technological expertise
include:
(a) financial assistance paid from FODEC funds;
(b) payment by the government of up to 50 per cent of the cost of human resource
training in connection with technological investment, up to a ceiling of D 125,000.
Training expenses includes registration fees, transport and accommodation costs and other
training-related outlays. They are paid from the budgeted funding of the Ministry for Vocational
Advancement and Employment.
6. All industrial enterprises may benefit from F ODEC assistance, which is granted by decision
of the Minister of Industry, based on a study and report by an advisory committee.
As regards payment of human resource training costs, any enterprise wishing to benefit from
this measure must submit to the National Centre for Continuing Education and VocationalAdvancement a training plan along the lines of a model drawn up by the responsible department in
the Ministry for Vocational Advancement and Employment.
7. See Section IX.8. See paragraph 5.
9. Incentives granted for investments in the acquisition of technology and technological know-
how do not increase exports by the beneficiary sectors.
C. 
ENERGY SAVING
1. Incentives accorded to enterprises making energy-saving investments take the form of
exemption from duties and taxes on capital goods and financial assistance from the National
Renewable Energy Agency (ANER).
2. This notification covers the period 1998-2000.
3. These incentives come under the national programme for the management of energy
consumption designed to prepare for the post-petroleum phase when Tunisia will have an energy
deficit.  They are meant to encourage companies to make energy savings and conduct research into
and develop renewable sources of energy as well as geothermal energy.
4. The legal texts governing incentives for energy saving are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives;G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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- Law No. 90-62 of 24 July 1990 on energy management;
- Decree No. 87-50 of 22 November 1987 instituting compulsory energy audits;
- Decree No. 94-537 of 10 March 1994, setting the amounts and criteria for the capital
grants for investments in energy management;
- Decree No. 94-1191 of 30 May 1994 establishing the conditions for benefiting from
the tax advantages provided for in Articles 37, 41, 42 and 49 of the Code of
Investment Incentives and granted for facilities for energy saving, research into,
production and marketing of renewable energy and research into geothermal energy,equipment for pollution control and waste collection, processing and treatment and
research and development facilities.
5. Investment incentives in the field of energy management take the following forms:
(a) Exemption from customs duties, reduction to 10 per cent of VAT on purchases of
capital goods needed for the investment;
(b) a specific grant for energy management projects including those relating to renewable
and geothermal energy:  This grant covers:
- 50 per cent of the cost of conducting energy audits, up to a ceiling of D50,000;- 50 per cent of the cost of demonstration projects, up to a ceiling of D 50,000;
- 5 per cent of the cost of investments in rational energy use and renewable
energies, up to a maximum of D 100,000.
6. All industrial enterprises wishing to make en ergy-saving investments are eligible for the
incentives mentioned in paragraph 5.
Tax advantages for the purchase of capital goods needed for research and development
projects are accorded to enterprises by decision of the Minister of Finance, based on the opinion of the
Technical Committee attached to the Ministry of Finance.
The specific grant is accorded by decision of the Minister of Industry, based on an opinion by
the committee chaired by the managing director of the National Renewable Energy Agency (ANER).It is granted within the framework of a perfor mance contract concluded between the ANER and the
enterprise concerned, setting out all the technical, economic and financial aspects of the investment
project, as well as the amount of the aid granted, the eligibility conditions and the procedures for its
release.
7. See point IX.
8. See paragraph 5.9. The grants given for investments in energy-saving projects do not lead to an increase in
exports from the sectors concerned.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
G/SCM/N/60/TUN, G/SCM/N/71/TUN
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IV. ENCOURAGEMENT OF NEW ENTREPRENEURS, LIGHT INDUSTRIES AND
SMALL AND MEDIUM-SIZED ENTERPRISES
A. NEW ENTREPRENEURS
1. Incentives to new entrepreneurs comprise capital grants, grants by way of government
participation in the cost of studies, technical assistance fees and expenses relating to the acquisition ofserviced sites or premises necessary to the implementation of industrial projects, and equity
participation.
Those considered as new entrepreneurs include natural persons of Tunisian nationality,
whether or not grouped together in a company, undertaking their first investment project, managing
the project personally on a full-time basis and having the requisite experience and qualifications, but
insufficient capital of their own.
2. This notification covers the period 1998-2000.3. These incentives are designed to encourage the creation of micro, small and medium-sized
enterprises, foster the spirit of private enterprise, combat unemployment and encourage the renewal ofthe production apparatus.
4. The legal texts governing these incentives are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives, as
amended by Law No. 99-4 of 11 January 1999 amending and supplementing the Code
of Investment Incentives;
- Decree No. 94-538 of 10 March 1994 granting investment incentives to new
entrepreneurs, as amended by Decrees Nos. 99-482 and 99-483 of 1 March 1999delimiting regional development areas;
- Law No. 73-82 of 31 December 1973 establishing the Industrial Promotion and
Decentralization Fund (FOPRODI);
- Decree No. 94-494 of 28 February 1994 establishing the procedures for government
payment of employer contributions to the statutory social security scheme.
5. New entrepreneurs who make investments in industry not exceeding a total cost of D 3 million
may receive the following benefits:
(a) a capital grant of 10 per cent of the cost of the equipment, up to a ceiling of
D 100,000;
(b) a government grant towards defraying the co st of the project study; this grant is set at
70 per cent of the cost of the project and may not exceed D 20,000;
(c) a minimum equity participation granted to manufacturing and service sector projects
on the following basis:
• for the first part of the investment and up to D 1 million, total equity participation paid from
FOPRODI funds shall not exceed 45 per cent of minimum equity; the investor shall also
provide evidence of a personal contribution equal to at least 10 per cent of the said capital andof participation of a venture capital investment company;G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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• for the balance of the investment and up to D 3 million, total equity participation paid from
FOPRODI funds shall be limited to 20 per cent of the additional minimum equity; the investor
shall also provide evidence of a personal contribution equal to at least 20 per cent of the said
capital and of participation of a venture capital investment company;
(d) payment by the government of a third of the price of the land or premises required for
the project, up to a ceiling of D 30,000.
In all instances, the participation paid from Industrial Promotion and Decentralization Fund
funds corresponds to that of the venture capital investment company.
6. The capital grants and loans mentioned in paragraph 5 are made available by the Industrial
Promotion and Decentralization Fund for industrial projects, following examination and study by the
technical committee and on the basis of a project feasibility study.
The incentive of government payment of employer contributions to the statutory social
security scheme is accorded by decision of the Minister of Social Affairs on the proposal of acommittee chaired by the representative of the Ministry of Industry.
7. See Section IX.8. See paragraph 5.9. The grants given for investments by new entrepreneurs do not lead to increased exports by the
beneficiary sectors as those incentives are given upon establishment of the enterprise and not during
the production phase.
B. 
LIGHT INDUSTRY AND CRAFTS AND TRADES
1. Incentives to light industry and crafts and trades take the form of an equity participation and a
grant by way of government participation in the cost of studies and technical assistance.
2. This notification covers the period 1998-2000.3. Incentives for investment in crafts and trades and light industries come within the strategy
launched over ten years ago to promote handicraft projects and encourage the trades, considering their
impact on employment.
4. The legal texts governing these incentives are as follows:
- Law No. 81-76 of 9 August 1981 creating the National Fund for the Promotion of
Crafts and Trades and Light Industries (FONAPRAM);
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives as
amended by Law No. 99-4 of 11 January 1999 amending and supplementing theCode of Investment Incentives.
- Decree No. 94-814 of 11 April 1994 defining small businesses, establishing their
sphere of activity and the criteria and procedures for granting the benefits for which
they are eligible, as amended by Decree No. 96-1444 of 12 August 1996.
5. Light industries and crafts and trades engaging in the activities envisaged in the Decree are
eligible for the following:G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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(a) a capital loan equivalent to 90 per cent of equity assets corresponding to the first
D 10,000 of the investment and to 80 per cent of equity assets of the part of the
investment between D 10,000 and D 50,000.  This sum is repayable free of interest as
of the eighth year;
(b) a capital grant of 6 per cent of the total cost of the investment.
Any person wishing to invest in the crafts and tr ades or engage in any of the activities referred
to in Decree No. 96-1444 of 12 August 1996 may benefit from the advantages mentioned in
paragraph 5.
The grants and equity participation mentione d in paragraph 1 are paid out of FONAPRAM
funds, which are managed by banks.
7. See Section IX.
8. See paragraph 5.
9. The grants given to small and medium-sized enterprises do not lead to increased exports by
the beneficiary sectors.
C. ENCOURAGEMENT OF SMALL AND MEDIUM -SIZED ENTERPRISES
1. Incentives to new small and medium-sized enterprises comprise equity participation and a
grant by way of government participation in the cost of studies and technical assistance.
2. This notification covers the period 1998-2000.3. The legal texts governing these incentives are as follows:
- Law No. 93-120 of 27 December 1993 enacting the Code of Investment Incentives, as
amended by Law No. 99-4 of 11 January 1999 amending and supplementing the
Code of Investment Incentives;
- Law No. 73-82 of 31 December 1973 establishing the Industrial Promotion and
Decentralization Fund (FOPRODI);
- Decree No. 99-484 of 1 March 1999 granting incentives to small and medium-sized
enterprises.
4. Small and medium-sized enterprises are eligible for the following assistance from the
Industrial Promotion and Decentralization Fund:
(a) minimum equity participation in accordance with the following criteria:
• for the first part of the investment and up to D 1 million, the participation
paid from FOPRODI funds shall not exceed 30 per cent of the minimum
equity;
• for the balance and up to D 3 million, the participation paid from FOPRODI
funds shall not exceed 10 per cent of the additional minimum equity.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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(b) a studies and technical assistance grant representing 70 per cent of the total cost, up to
a ceiling of D 20,000.
9. The incentives granted within the framework of the encouragement of small and medium-
sized enterprises do not affect the growth of exports by the beneficiaries.  These incentives are given
only once, at the time when the investment is made and not during the production phase.
V. EXPORT PROMOTION
Unchanged.
VI. OTHER ADVANTAGES GRANTED UNDER LAW NO. 93-120 OF
27 DECEMBER 1993 PROMULGATING  THE CODE OF INVESTMENT
INCENTIVES
Unchanged.
VII. NATIONAL UPGRADING PROGRAMME
1. The national upgrading programme initiated in 1996 provides financial assistance to
industrial enterprises carrying out restructuring.  Such restructuring includes:
(a) Physical investments, in particular in vestments in the technical and technological
modernization of the production process, conversion in order to adapt to markets andimprovement of company competitiveness;
(b) Intangible investments, in particular those covering diagnostic studies prior to the
upgrading and those fostering greater company competitiveness.
2. This notification covers the period 1998-2000.
3. The opening of the economy and establishment of a free-trade area with the European Union
calls for the upgrading of the industrial sector by setting up a programme and structures for
modernizing the economy and strengthening the capacities of firms to adapt to the demands of the
international market.
Upgrading entails a package of actions within the company and its environment.  It therefore
affects aspects such as technology, organization, financial balance, vocational training, etc.
With regard to the company's environment, upgrading affects basic infrastructure, support
structures and the range of production and service entities related to the industry.
Initial cost estimates for the first phase of this programme (1996-2000) stand at around
D 2.5 billion, 60 per cent of which will be spent on upgrading and modernizing enterprises and
40 per cent on upgrading and reinforcing the infrastructural environment.
The programme is financed by both the enterprises and the financial sector.  Government
assistance complements market mechanisms and is designed to foster and support efforts by
enterprises, in view of the cost of the operation.
4. Government assistance is financed from the Industrial Competitiveness Development Fund
(FODEC), established by Law No. 94-127 of 27 December 1994.  The organization, working and
operating procedures of FODEC are laid down in Decree No. 99-2741 of 6 December 1999.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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5. Government assistance takes the form of capital grants set as follows:
* Physical investments:
- 20 per cent of physical investments financed from equity assets;
- 10 per cent of investments financed with other resources;
- 50 per cent of the cost of priority equipment purchased in the context of upgrading,
up to a ceiling of D 100,000;
* Intangible investments:
- 70 per cent of the cost of diagnostic studies preliminary to upgrading, up to a ceiling
of D 30,000;
- 70 per cent of the cost of any other non-tangible investment designed to improve the
company's competitiveness.
6. The upgrading programme covers private-sector  industrial enterprises and industry-related
service companies, regardless of size, category or location.
Government assistance is granted by decision of the Minister of Industry based on an opinion
by the steering committee of the upgrading programme.  To that end, an agreement is concluded
between the Ministry of Industry and the enterprise, setting out the rights and duties of each of the
parties.
7. See Section IX.8. See paragraph 5.
9. The upgrading programme has no direct impact on exports by the beneficiary enterprises.
VIII.  INDUSTRIAL COMPETITIVENESS DEVELOPMENT FUND (FODEC)
1. The Industrial Competitiveness Development Fund provides funding for programmes for
improving the quality of industrial products, industrial restructuring processes and strategic sectoral
studies.
2. This notification covers the period 1998-2000.
3. FODEC assistance takes the form of funding.4. FODEC was created by Law No. 94-127 of 26 December 1994 promulgating the Finance Act
for the 1995 budget year and its operations were established by Decree No. 99-2741 of
6 December 1999.
5. FODEC funding takes the following forms:
(a) financial assistance of up to 50 per cent of the cost of priority equipment, up to a
ceiling of D 100,000 for each enterprise;
(b) financial assistance of up to 70 per cent of the cost of isolated, intangible and priority
investments, up to a ceiling of D 70,000 for each enterprise;
(c) financial assistance of up to 70 per cent of the cost of diagnostic studies prior to the
restructuring of enterprises in financial difficulties, up to a ceiling of D 30,000.G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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Such assistance is accorded by decision of the Minister of Industry.
6. FODEC assistance is intended for private-sector industrial enterprises and industry-related
service companies.
7. See Section IX.8. See paragraph 5.9. The FODEC has no direct impact on exports by the beneficiary enterprises.
IX. AMOUNTS OF THE INCENTIVES GRANTED
The following is a breakdown of the amounts of th e incentives accorded to enterprises for the
period 1998-2000:
1. Tax incentives for all categories of investment:
- Company tax:
. 1998: D 192.188 million;
. 1999: D 224.297 million;
. 2000: D 235.076 million (up to September 2000).
- Personal income tax:
. 1998: D 13.462  million;
. 1999: D 9.103 million;
. 2000 D 9.377 million (up to September 2000).
- Waiver of duties and taxes on capital goods purchases:
. 1998: D 218.061  million;
. 1999: D 310.163  million;
. 2000: D 199.784  million (up to September 2000).
2. Financial incentives for all categories of investment:
(a) Industrial capital grants:- Regional development:
. 1998:  D 11.234 million;. 1999:  D 39.872 million;
. 2000:  D 53.517 million (up to September 2000).
- Pollution control:
. 1998: D 2.464 million;. 1999: D 3.2  million;
. 2000: D 2.5 million.
- New entrepreneurs:
. 1998:  D 820,000;. 1999:  D 2,331,000;
. 2000:  D 3,789,000 (up to September 2000).G/SCM/N/38/TUN, G/SCM/N/48/TUN,
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- Research and development:
. 1998: D 283,996 dinars;
. 1999: D 133,100 dinars;
. 2000: D 320,412 dinars.
- National Upgrading Programme:
. 1998: D 6.607 million;
. 1999: D 7.662 million;
. 2000: D 12.400 million.
- Light industries:
. 1998: D 0.806 million;. 1999: D 1.509 million;
. 2000: D 1.47 million (up to September 2000).
- Industrial Competitiveness Development Fund (FODEC):
. Grants for intangible investments: D 3.272 million;. Grants for physical investments:  D 4.273 million;
(b) Contribution to cost of basic infrastructure:
. 1998: D 0.285 million;
. 1999: D 0.184 million;. 2000: D 0.334 million (up to September 2000).
(c) Government payment of the employer contribution to the statutory social security
scheme:
. 1998: D 4.206 million;. 1999: D 7.347 million;
. 2000: D 4.508 million (until September 2000).
(d) Export promotion (FOPRODEX):
. 1998: D 15,414,571;
. 1999: D 22,235,465;
. 2000: D 25,883,514.
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