The Finance Law for the year 2027 provides for new measures aimed at supporting the financial restructuring of the Tunisian Sugar Company (STS) and strengthening its economic balance. These provisions notably concern the State taking over certain debts and the possibility of an increase in the company’s capital.
The Essentials
- Article 55 : the State would assume the Tunisian Sugar Company’s debt toward the National Company for Petroleum Distribution (SNDP), payable until December 31, 2025.
- Settlement : a compensation operation would be established from a portion of SNDP’s retained earnings allocated to the State.
- Taxation : the operation would benefit from an exemption from corporate income tax.
- Article 56 : the Minister of Finance would be authorized to subscribe, on behalf of the State, to an increase in the capital of the Tunisian Sugar Company, within the limits provided by the text.
The State Could Assume a Portion of the Company’s Debts
According to Article 55 of the 2027 Finance Bill, the State would substitute itself for the Tunisian Sugar Company in repaying the debt accumulated toward the National Company for Petroleum Distribution (SNDP), payable until December 31, 2025.
This measure aims to ease the financial commitments of the sugar company and to contribute to restoring its financial balance.
The project provides that the settlement of this debt would be carried out by means of a compensation operation decided by decree, the amount to be determined based on a portion of SNDP’s retained earnings returning to the State.
This procedure would thus enable handling the concerned receivables within the framework of a financial mechanism involving the State and the two companies.
A Tax Exemption Planned for the Operation
The article 55 also provides for a specific tax provision.
By way of derogation from the applicable tax legislation, the compensation operation would be exempt from corporate income tax.
This exemption aims to facilitate implementing the debt settlement mechanism without creating additional tax burden under this tax.
An Increase in Capital Envisaged
Parallel to the debt treatment, Article 56 of the 2027 Finance Bill provides to authorize the Minister of Finance, acting on behalf of the State, to subscribe to an increase in the capital of the Tunisian Sugar Company.
This subscription would be limited to the amount corresponding to the debt of the Tunisian Sugar Company toward the National Company for Petroleum Distribution, transferred within the framework of the planned scheme.
The objective is to strengthen the financial structure of the company and to support its turnaround capabilities.
These measures thus constitute a financial support framework built around two complementary mechanisms: debt treatment and potential strengthening of equity.
However, these provisions are at this stage part of the 2027 Finance Bill. Their implementation remains conditioned on the final adoption of the text and its entry into force.
The exact amount of debt concerned is not specified in the elements presented.
