Algèria: Entorn econòmic
The acquisition of products, goods and services already benefiting from a VAT exemption or VAT franchise regime is zero-rated.
Tobacco products are subject to excise tax. An annual property tax is levied on real estates, with rates varying according to the location of the property.
Various stamp duties apply.
The depreciation rates usually follow this scheme: office items depreciation rate is 10% or 20%; industrial buildings 5%; cars 20% or 25% (limited to DZD 1 million).
Start-up expenses are deductible when paid and cannot be capitalised and depreciated. Bad debts are deductible if a legal action has been taken to recover the debt or when evidence is provided that the receivable has become irrecoverable. Charitable contributions are deductible (capped at DZD 1 million).
Some specific provisions apply to R&D expenses: they are fully deductible when paid by the entity bearing the expenses and when justified. Revenues derived from R&D activities are exempted from corporate income tax (capped at 10% of the taxable benefit or DZD 100 million), provided that the exempted amount is reinvested in R&D activities.
Taxes are generally deductible (except the IBS itself, the tax on apprenticeship and training and that on passenger cars).
Incentives are further available for qualifying investments that are declared to the National Agency for Investment Development (ANDI), such as investments to acquire assets included in the creation of new activities, to participate in the share capital of an Algerian company and to take over privatisation activity. Exemptions could apply to VAT, IBS or the Tax on Professional Activity (TAP). Specific rates depend on whether the investment qualifies in the general regime or the derogatory regime (which requires contribution from the Algerian state). A temporary exemption from IBS is granted to investing companies creating at least 100 jobs.
Other significant taxes include: Tax on Professional Activity (TAP) of 2% of turnover (or 3% for companies engaged in the transport of hydrocarbons, 2% with a 25% concession for construction and water engineering works, 1% for manufacturing), Apprenticeship Tax of 1% of payroll, and Training Tax of 1% of payroll. Social contributions paid by the employer amount to 26% of gross salary.
A Transfer Tax applies to land, buildings, and ongoing business at a rate of 5% for registration fees, plus 1% for publication formalities for the transfer of ownership of land and buildings.
A 4% tax applies on the import of services (Bank Domiciliation Tax, reduced to 0.5% for the importation of goods or merchandise with a minimum amount of DZD 20,000). A pollution tax is levied on assets that may be harmful to the environment.
Various stamp duties apply.
Algeria | Middle East & North Africa | United States | Germany | |
Number of Payments of Taxes per Year | 27.0 | 20.8 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 265.0 | 204.0 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 66.1 | 32.1 | 36.6 | 48.8 |
Source: Doing Business, Latest available data.
Global income tax (IRG) | Progressive rate up to 35% |
Up to DZD 10,000 | 0% |
From DZD 10,001 to 30,000 | 20% |
From DZD 30,001 to 120,000 | 30% |
Over DZD 120,000 | 35% |
A reduction of 40% of the payable tax applies (capped at DZD 1,500) |
Interest: 10%, unless the rate is reduced under a tax treaty.
Royalties: 0 when paid to residents, 24% when paid to non-residents (unless specified otherwise by a treaty, with rates varying between 5%, 10%, and 12%).
Technical service fee (withholding tax applied on service fees paid abroad by a local company to a foreign company): 24% (unless specified otherwise by a treaty).
Branch remittance tax (applied to remittances by a permanent establishment to its foreign head office): 15% (unless specified otherwise by a treaty).
Find out more about Taxes and Accounting in Algeria on GlobalTrade.net, the Directory for International Trade Service Providers.
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Actualitzacions: May 2022