French Supreme Court Upholds Decision that Company Benefiting from Tunisian Export Exemption Qualifies as Resident for Tax Treaty Purposes

The French Supreme Administrative Court (Conseil d'Etat) issued a decision on 2 February 2022 concerning whether a company benefiting from export incentives in Tunisia may qualify as a resident of Tunisia for the purpose of the 1973 France-Tunisia tax treaty and, therefore, qualify for treaty benefits.

The case involved a Tunisian export company that benefited from an incentive allowing it to deduct all foreign-source profits from their taxable result for a 10-year period. In 2013 and 2014,…