Corporate Tax in Algeria

Overview by
Tax Base For Resident and Foreign Companies
Foreign companies are taxed on the profits they make in Algeria.

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
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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