| Taxable Income (DZD) |
Tax Rate |
| 0 to 120,000 |
0% |
| 120,001 to 360,000 |
20% |
| 360,001 to 1,440,000 |
30% |
| Over 1,440,000 |
35% |
Tax on Total Income
It is a tax that applies on the income of individuals
(natural person) and those of
partnerships.
The overall net income is the total net income of the
following categories:
- The industrial, commercial and craft;
- Benefits for non-commercial professions;
- Income from agriculture;
- Income from the rental of developed and undeveloped
properties.
- Income from movable capital;
- Wages, salaries, pensions and annuities
This tax is applied to the turnover excluding VAT of natural or legal person. The rate of tax is set at 2%. The tax base consists of the total revenues raw professional or excluding VAT turnover when it comes of taxpayers subject to this tax, made in Algeria during the year.
Company Tax (Corporate Tax)
All companies, except partnerships and joint ventures under the Commercial Code, are liable for corporate income tax on their profits arising from any business carried on in Algeria. Companies are liable for corporate income tax at the rate of 23% for all kinds of activities Foreign companies not established in Algeria and foreign companies with no permanent establishment in Algeria are subject to withholding tax of 24% on their turnover realized in Algeria or they can be taxed according to the general scheme following a request.
VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax. All economic activities conducted in Algeria, including industrial and handicraft activities and liberal or commercial professions, are subject to VAT.
Exports by definition are consumed abroad and usually are not subject to VAT. Any VAT charged under such circumstances is usually refundable. This avoids downward pressure on exports.
(1) Rates
Two different VAT rates apply in Algeria:
A special reduced rate of 7% applies to products, commodities, wares, merchandise and operations related to printing, materials for agriculture, products of traditional crafts, plants and domestic animals (aquaculture products), excluding fish and other edible products of sea and various other items; and,
17% for operations related to services and goods not
subject to another rate.
(2) Registration
Registration generally is required for entities that
have an annual turnover of DZD
100,000 for sales of goods and DZD 130,000 for the
service. A business must
register within 30 days of becoming liable.
(3) Filing and payment
Monthly returns and any tax payable are due by the 20th day of the following month.
Single Flat tax
It is a tax that replaces taxes (TOTAL INCOME TAXE or INCOME TAX , VAT and TAX ON PROFESSIONAL ACTIVITY) that is applied to taxpayers whose turnover does not exceed 30 million dinars.
The rate of this tax are:
- 12%: applicable to the service delivery activity;
- 6%: applicable to sales activity.
Stamp Duty
It is a tax that applies to the documents listed by the
law, among them there are:
- Contracts subject to the registration fee, court
documents, negotiable instruments
(bills of exchange, promissory notes, bills and
non-marketable bonds) trade register.
Property tax
It is a tax that applies to developed and undeveloped properties. The rate of PT vary between 3 and 10%.
Fringe Benefits Tax
As fringe benefits are considered to be a part of the salary paid to an employee, they are subject to social security and income taxes. Taxable fringe benefits are evaluated on the basis of their market value.
Other Taxes and Levies
Companies that employ more than six (6) permanent employees are subject to a tax of 1% of the annual payroll for vocational training. An additional tax of 1% of the annual payroll is also payable (for learning) for all companies that employ more than 20 permanent employees, taxpayers may be exempt from paying this tax on condition to initiate training and learning.
Branch Tax
Introduced by the Finance Act 2009 (Section 6), branch tax is applicable to profits transferred to a non-resident by the branch or permanent establishment of a foreign company.
The tax is payable on the profit after company tax at 15%.
Luxury Vehicle Tax
Vehicles registered in the category of passenger cars (PC) which are less than five (5) years old and disclosed in the Balance Sheet of a company established in Algeria, or rented by the company tor a cumulative period equal to or greater than three (3) months during a tax period, are subject to an annual tax determined as follows:
Between DZD 2,500,000 and DZD 5,000,000: DZD 300,000 Over DZD 5,000,000: DZD 500,000.
However, the tax does not apply to vehicles intended exclusively for sale, either to rent or to execute a transport service available to the public, when these operations correspond to the normal activity of the owning company
Algeria Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate is 20 % and Highest Rate is 35%
| Taxable Income (DZD) |
Tax Rate |
| 0 to 120,000 |
0% |
| 120,001 to 360,000 |
20% |
| 360,001 to 1,440,000 |
30% |
| Over 1,440,000 |
35% |
Individuals who are tax resident in Algeria are subject to income tax on their worldwide income. Individuals who are not tax resident in Algeria are subject to tax on their income from Algerian sources.
The following individuals are considered to be tax resident in
Algeria:
Individuals who are owners or beneficial owners of a home in
Algeria
Individuals who are tenants in Algeria with a rental term of a continuous period of at least one year, whether by single or by successive agreements
Individuals who have their place of principal residence or the center of their main interests in Algeria
Individuals working in Algeria, regardless of whether they are paid
Agents of the Algerian government who serve at a mission in a foreign country and who are not subject in the foreign country to a personal tax on all of their income
All bonuses paid by the employer on a non-monthly basis are subject to a reduced rate of 10%. For this purpose, non-monthly bonuses include amounts paid to persons in addition to the amounts paid to employees for their principal activities.
Relief for losses
In general, losses incurred in business and agricultural activities may be carried forward for four years to offset profits from the same category. Losses attributable to the depreciation of assets may be carried forward indefinitely.
Nonresidents
Individuals who are not tax resident in
Algeria are subject to tax on their Algerian-source income. The
types of income considered to be Algerian-source income include,
but are not limited to, the following:
Income from Algerian securities and capital assets
Income from farms in Algeria
Income from paid or unpaid professional activities carried out in Algeria
Operations profits, as defined in Article 22 of the Algerian Direct Tax Code (self-employment profits), derived in Algeria
The following types of income are also considered
Algerian-source income if the payer of the income is resident
for tax purposes or established in Algeria:
Pensions and annuities
Products that are specified in Article 22 and that are received
by inventors or under copyrights and revenues from industrial
and commercial property and similar rights
Amounts paid as compensation for services provided or used in
Algeria
Corporate Tax Rates in Algeria
The corporate tax rate is 19%.
Capital Gains Tax in Algeria
Capital gains. Capital gains derived from
the transfer of tangible property during the course of a
nonbusiness activity are not taxable.
The taxation of gains derived from the transfer of capital
assets depends on whether the assets are short-term or long-term
assets. Capital assets are considered long-term assets if they
have been held more than three years. Thirty-five percent of
gains on long-term assets are included in taxable income.
Capital assets that are not long-term assets are considered
short-term assets. Seventy percent of gains on short-term assets
are included in taxable income.
A 20% final withholding tax is imposed on gains derived by
nonresidents in Algeria.
Capital gains on share transfers are subject to a final
withholding tax at a rate of 10% for residents and 15% for
nonresidents.
Withholding Tax Rate in Algeria
Investment income. Dividend distributions
are subject to a final withholding tax at a rate of 10% for
residents and 15% for nonresidents.
Revenues from loans and deposits are subject to 10% withholding
tax. However, for interest earned on monies deposited in savings
accounts of individuals, the following are the withholding tax
rates:
1% for the portion of interest payments not exceeding DZD 50,000
10% for the portion of the interest payments exceeding DZD
50,000
Directors? fees. Directors? fees are fees paid to directors of
companies as compensation for the performance of their
functions. Directors? fees are considered distributions of
income. Consequently, they are subject to a withholding tax at a
rate of 10% for residents and 15% for nonresidents.
The Algerian tax law provides for monthly,
quarterly and annual tax returns.
The monthly tax return (G50) applies only to businesses under
the real regime. This tax return must be filed by the 20th day
of each month.
The quarterly tax return applies only to
businesses under the simplified regime. It must be filed by the
20th day of the month following the end of the quarter.
An annual tax return must be filed by 30 April of each year.