Corporate Tax in Algeria
- Tax Base For Resident and Foreign Companies
- Foreign companies are taxed on the profits they make in Algeria.
|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
The local tax system applies indiscriminately, whatever the origin of the capital; however, a temporary tax exemption is possible (from 3 to 10 years), in the case of approval by the ANDI (National Agency for the Development of Investment).
Foreign companies which exercise a temporary activity in Algeria as service providers in the framework of contracts concluded with Algerian operators are subject to a tax regime which departs considerably from common law : IRG or IBS at a rate of only 18%.
- 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.
Country Comparison For Corporate Taxation
|Algeria||Middle East & North Africa||United States||Germany|
|Number of Payments of Taxes per Year||34.0||21.6||11.0||16.0|
|Time Taken For Administrative Formalities (Hours)||451.0||194.1||187.0||215.0|
|Total Share of Taxes (% of Profit)||72.0||32.8||46.8||48.2|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
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