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Taxes and Accoun...

Taxes and Accounting in Algeria

Overview by Globlatrade.net:

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 , Governing Council of Chartered Accountants

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 Algérie ; PricewaterhouseCoopers

Accounting News

Algerian accounting news

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).

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Corporate Taxes

Company Tax: 25%
19% in the production sector.
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).

Sources of Fiscal Information

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

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Intellectual Property

National Organizations: Patents, trademarks and copyright are protected in Algeria. For patents, requests for information should be made to the Algerian Institute of Standardization and Industrial Property (INAPI). Concerning trademarks, the request should be made to the National Trade Register Center (CNCR).
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property

National Regulation and International Agreements

Type of property and law	Validity	International Agreements Signed
Patent Edict n° 03-07 on patents 19 July 2003	20 years	Patent Cooperation Treaty (PCT)
Trademark Edict n° 03-06 on trademarks 19 July 2003	10 years	Nice agreement Protocol relating to the Madrid Agreement
Design Edict n° 66-86 on designs and models 28 April 1966	10 years, renewable for consecutive 10 year periods
Copyright		Berne convention Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations WIPO Copyright Treaty
Industrial Models

Legal Framework

Independence of Justice: Judicial power is not independent in Algeria. Judges are often subjected to disciplinary measures or other repressive measures on the part of the government.
Equal Treatment of Nationals and Foreigners: Yes
The Language of Justice: Arabic
Recourse to an Interpreter: For a court case it is particularly recommended that you resort to the help of an interpreter/translator, as all the exchanges take place in Arabic (the official language). However, most magistrates and lawyers speak French, as well as Arabic.
Sources of the Law and Legal Similarities: Algerian law has various sources: the Constitution, laws voted by Parliament, ministerial decrees and orders, international conventions and treaties ratified by Algeria.
There are legal similarities with all the countries whose law has come from Roman law, and only partly from Muslim law.
Checking National Laws Online: Official portal for Algerian Law
Algerian Official Journal

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Standards

National Standards Organizations: Algerian Institute of Standardization (IANOR)
Integration in the International Standards Network: The IANOR is a member of the International Standards Organisation (ISO).
Classification of Standards: The national conformity mark is entitled TEDJ. The NF and CE marks are accepted in Algeria and are established as references.
Online Consultation of Standards: Algerian Institute of Standardization
Certification Organizations: Algerac
List of research consultancies authorized to assist companies with their certification from the Algerian Ministry of Industry.

Business Practices

General Information: Kwintessential information sheets on culture and customs in Algeria.
Opening Hours and Days: In Algeria, working hours are 8am to noon and 1pm to 5pm, from Saturday to Wednesday. Thursday and Friday are the rest days.
Administrations are open on Thursday morning and the banks close at 3pm.
During Ramadan, the pace is slowed and hours are modified (9am to 3pm in general).

Public Holidays

New Year's Day	1 January
Eid al-Fitr, end of Ramadan Eid al-Adha, feast of the sacrifice, Ashoura, Muslim New Year, Mouloud, birth of the Prophet	Religious feasts do not follow the Gregorian calendar, but rather the Hegirian calendar (based on the lunar cycles). As dates are therefore variable from one year to the next, use the following page of the IMCE (Institute of Celestial Mechanics and Calculation of Ephemerides) website, for an exact calculation of the religious feasts. Note that 2008 corresponds to the year 1429 of the Hegira.
Labor Day	1 May
Coup d'Etat against Ben Bella	19 June
National Day	5 July
Anniversary of the Revolution	1 November

Periods When Companies Usually Close

Aïd El Fitr	The two days following the end of the month of Ramadan.
Aïd El Adha	2 days, about two months after Aïd El Fitr
	It is difficult to contact Algerian companies in August and during Ramadan.

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