Taxes - Accounting

Algeria

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: Value added tax (TVA)
Tax rate: 17%
Reduced tax rate: 14% (reduced rate) on certain semifinished products.
7% (special reduced rate) in general on essential foodstuffs and medicines.
Other consumption taxes: A consumption tax (taxe intérieure de consommation) is levied on several products : on beer, tobacco and matches (with a tax rate definied per hl and kg) ; on salmon, cofee, some fruits, alcool, all-terrain vehicules, etc. (with a rate that varies between 10 and 100%). For further information, consult the pages of the fiscal administration's website on the area of application of the different consumption taxes (in french only).

Corporate taxes

Tax rate

Capital companies are subject to tax on company profits (IBS)	25% 19% in the production sector.
Partnerships are subject to global income tax (IRG)	From 0 to 35%
Tax on Professional Activity (TAP)	2% of turnover apart from VAT.

Tax rate for foreign companies: Foreign companies are taxed on the profits they make in Algeria.
Capital gains taxation: Long term capital gains are taxed at 35% in Algeria.
Main allowable deductions and tax credit: Expenses are deductible for depreciation, amortization, reserves, rents for premises and equipment, wages, etc. Do not hesitate to consult an Algerian chartered accountant to know more about it.
Other corporate taxes: See the list of taxes and their explanation on the Algerian tax website.

Individual taxes

Tax rate

Global income tax (IRG)

Progressive rate up to 35%: 0% up to 120 000 DZD, 20% from 120 001 to 360 000 DZD, 30% from 360 001 to 1 440 000 DZD and 30% over 1 440 000 DZD

Allowable deductions and tax credit: To know the different deductions allowed to people working in Algeria, you should contact the Tax Office.
Special expatriate tax regime: The expatriate tax regime is similar to that of nationals.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: ANDI website
Withholding taxes: Dividends: 15%, Interest: 10%, Royalties: 24% (withholding taxes).
Bilateral agreement: Algeria and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
09/02/1985	Law 85-50 of 07/05/85	28/05/1986
23/07/1990	Law 90-85 of 29/10/90	22/06/1992

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Directorate-General of Taxes
Other domestic resources: Direction Générale des Grandes Entreprises (DGE). Large Entreprises Directorate

Accounting Rules

Tax year

The tax year begins on 1 January and finishes on 31 December of the same year.

Accounting standards

The Act 07-11 of 25 November 2007 on the financial accounting system has ended the rule of the national accounting plan dating from 1975; it was enforcement in 2009. This law aims to harmonize the Algerian accounting plan with the international standards (IFRS) of the IASB. New accounting standards largely based on these IFRS have been officially adopted.

Accounting regulation bodies

National Popular Assembly

Accounting reports

Accounting structure includes: the balance sheet, the profit and loss account and the notes to the accounts.

Publication requirements

Monthly and Annual declarations are compulsory:
- A monthly declaration of tax paid in cash or deducted at source. Before the 21 of every month, each company must make a monthly declaration, series GN50, if they belong to the Real regime;
- An annual declaration of company profits (IBS: tax on company profits). Before 1 April of every year, each company must make an annual declaration of its profits, series E N6, to the tax office it comes under.

Large companies have to pay provisional tax 3 times a year: 20 March, 20 June, 20 November.

Professional accountancy bodies

CRCECC

Certification and auditing

The monitoring and the certification of the legality of accounts were made compulsory by a decree of 1993. The 1998 Finance Act introduced the obligation for public industrial and commercial establishments (EPICs) to have their accounts certified by an auditor. This takes place every year. On the other hand, resorting to an external auditor is not a legal obligation. However, companies have to set up an internal audit organization (Act 88-10).

You can consult an external auditor :KPMG Algeria ; Deloitte Algeria ; PricewaterhouseCoopers

Accounting news

Algerian accounting news