Equity Savings Account – Tax-Advantaged Investment
The Equity Savings Account (ESA) allows you to reduce your taxes by up to 55%.
Who Can Open an ESA?
The ESA is available to any individual taxpayer domiciled in Tunisia — employees, self-employed professionals, etc.
How to Open an ESA
The ESA can be opened with:
- A Brokerage Firm, or
- or A Bank
Management Options
When opening an Equity Savings Account (ESA), you sign an agreement with your brokerage firm or bank. This agreement specifies the management method that best suits you:
- Self-Directed Management: You personally decide on the buying and selling of securities.;
- Discretionary Management : You delegate the management of the account to a professional (Brokerage Firm or Bank).
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What Are the Advantages of an ESA?
Tax Benefits
The Equity Savings Account (ESA) is a smart way to invest in the stock market through diversified and profitable medium- and long-term investments. This scheme offers several advantages:
- You can deduct the amounts deposited in the ESA from your taxable income, up to 100,000 dinars per year.
- Your tax savings can reach 55% of the tax amount owed.
- You benefit from the capital gains potential of the shares acquired over the medium and long term.
- You decide how much, when, and how often to contribute to your ESA.
Eligibility Conditions
The tax benefits associated with the Equity Savings Account (ESA) are subject to compliance with certain conditions:
- Lock-in period: The funds deposited in the ESA must remain blocked for five years, starting from January 1 of the year following the deposit. The lock-in requirement applies only to the deposited funds — buying and selling transactions within the ESA remain unrestricted.
- Proof of deposit: The investor must present to their employer or the tax authorities a certificate of deposit issued by the institution where the ESA is held.
- Investment allocation: The funds deposited in the ESA must be used within 90 trading days from the deposit date for the exclusive acquisition of:
- At least 60% in listed shares and up to 40% in Treasury Bonds issued by the State; or
- Shares or units of mutual funds (UCITS) that comply with the same allocation rules.
- Sale of securities: The sale of securities is allowed provided that the proceeds used to acquire them (and which determined the tax benefit) are redeposited into the ESA. These amounts must be reinvested within no more than 90 trading days.
- The funds deposited in the ESA do not earn intere
Loss of Tax Benefit
- With regard to the beneficiary, in the event of non-compliance with the lock-in requirement:
- The withdrawal of funds or securities before the end of the fifth year following the year of deposit results in the payment by the account holder of the tax due but unpaid, increased by late payment penalties.
- The withdrawal of funds or securities made after the end of the third year following the year of deposit results only in the payment of late payment penalties.
- Late payment penalties are not applicable in cases of withdrawals due to unforeseen events such as illness, accident causing bodily injury, work stoppage, or death of the account holder.
- The death of the account holder does not entail the termination (closure) of the account nor the loss of the associated tax advantages.
- The heirs retain the tax benefits, provided they comply with the lock-in requirements for the remaining period.
A Few Tips for Making the Most of Your ESA Investment
- If you plan to manage your ESA yourself, you must have enough time to do so and, above all, possess sufficient knowledge of how the stock market operates. Otherwise, you have two other options:
- Discretionary Management: In this case, you delegate the management of your ESA to a brokerage firm or a bank.
- Collective Management: In this case, you invest in an ESA Mutual Fund (FCP CEA), thereby combining the tax savings advantage with the benefits of professional collective management.
- Do not invest money that you may need in the short term. You should have sufficient savings to allow you to lock in your funds for a five-year period and fully benefit from the associated tax advantages.
Legal Framework
Establishment of the ESA, definition of the tax advantage, and flexibility in account management: Income Tax and Corporate Tax Code, particularly Article 39.
List of unforeseeable events: Order of the Ministers of Finance, Public Health, and Social Affairs dated August 31, 2002.
Conditions for opening Equity Savings Accounts, governing the management and use of funds and securities deposited therein: Decree No. 99-2773 of December 13, 1999, as amended by subsequent texts.
Obligations of the Brokerage Firm or the Bank
- Ensure that the deposited funds are used within a maximum of 90 trading days from the date of deposit.
- Ensure that the deposited funds are invested in listed shares (at least 60%) and in Treasury Bonds (up to 40%), or in mutual fund (UCITS) units that comply with these same allocation rules.
In the event of non-compliance with these obligations , cthe brokerage firm or the bank is liable for the payment of the tax due on the amounts deducted by the saver, plus penalties. To prevent this, the brokerage firm or the bank may, within the last five trading days of the 30-day period, execute securities purchase transactions on behalf of its client, regardless of the type of management agreement concluded (self-directed management or discretionary management).
Glossary
A document issued by the institution where the Equity Savings Account (ESA) has been opened, certifying the deposit of funds that will allow the employer to deduct them from the employee’s taxable income base.
A share represents ownership in a company. Each share corresponds to a fraction of the company’s capital.
This is the remuneration paid to shareholders. It represents part or all of the profits generated by the company, which it decides to distribute to its shareholders in proportion to the number of shares each one holds.
The positive difference between the selling price of a share and its initial purchase price.
These are debt securities. Each bond represents a portion of a loan. The holder of a bond becomes a creditor of the issuing company. Bonds pay an interest rate that may be fixed or variable depending on the terms of issuance.
Government-issued bonds that pay an interest rate, which may be fixed or variable depending on the issuance terms.
Entities responsible for managing a collective portfolio of securities on behalf of investors. The main types of UCITS are SICAVs (Open-End Investment Companies) and FCPs (Mutual Funds).
They are the only entities authorized to conduct or record transactions involving securities. They may also manage investment portfolios, such as those held in an Equity Savings Account (ESA).
Failure by the holder of an ESA to comply with the conditions required to obtain the tax benefit exposes them to sanctions, including the payment of the unpaid tax amount and, in some cases, late payment penalties.
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Frequently Asked Questions
No, the law does not set any minimum amount for opening an ESA.
Only cash deposits are allowed, up to a maximum total of 100,000 dinars per year
| Equity Savings Account | Securities account | |
| Eligibility | Individuals residing in Tunisia | Individuals or legal entities |
| Contribution limit | 100,000 dinars/year | No limit Funds available at any time |
| Availability of funds | Funds are always available, but funds must be frozen for at least five years in order to benefit from the tax advantage. | Funds available at any time |
| Transfer option | Option to transfer your Equity Savings Account to another institution | Option to transfer your securities account to another institution |
| Tax advantages |
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| Minimum holding period | 5 years to benefit from tax advantages | No minimum holding period |
| Type of investment | Securities (shares, UCITS, etc.) | Securities (shares, bonds, UCITS, etc.) |
| Taxation of withdrawals | Loss of tax benefits if withdrawn before 5 years | Capital gains taxed in accordance with current regulations |
| Target audience | Individual investors wishing to benefit from a tax advantage | Investors wishing to manage their investments freely |
Eligible individuals (employees, self-employed professionals, retirees) can open a Equity Savings Account each year and enjoy the tax benefit during the year of deposit.
The institution where you opened your Equity Savings Account must send you a statement at least once a quarter showing the status of your account and the results recorded during the period in question.
You can make one or more payments into your Equity Savings Account. Each time you make a payment, you will receive a deposit certificate entitling you to the tax benefit. However, the five-year lock-in period applies separately to each payment.
Yes, while retaining your rights, of course (the date of the first payment and tax seniority are retained after the transfer).
Only resident individuals (tax residents in Tunisia) are eligible.
No, the management of a Equity Savings Account is governed by specific legal and tax regulations. The Equity Savings Account is funded by deposits that will be used to acquire shares in listed companies for at least 60% of the total amount, with the remainder invested in Assimilable Obligation of the Treasury, or to acquire shares or units in UCITS that comply with the same rules.
You will be required to pay the full amount of tax due as well as late payment penalties. However, in the event of withdrawal after the expiry of the third year following the year of deposit, or withdrawal due to unforeseeable circumstances (illness, accident resulting in bodily injury, incapacity for work, death of the account holder, etc.), late payment penalties will not be payable.
You can choose between two management methods: either you manage it yourself (free management) or you entrust the management to a stockbroker or bank (mandated management).
Capital gains are exempt from tax if the sale of the shares takes place after the end of the year following the year of acquisition. Otherwise, they are subject to income tax at a rate of 10%, after deduction of capital losses recorded during the same year and after a deduction of 10,000 dinars from the remainder.
Dividends are subject to tax at a rate of 10%.
Yes, as income from movable capital, interest on Assimilable Obligation of the Treasury is subject to taxation in the form of a 20% withholding tax. However, it is deductible from the income tax base up to a certain limit.
Why choose a Equity Savings Account?
Find out more about the advantages of a share savings account