Algeria Income Tax Rate for 2017, 2016, 2015, 2014, 2013
Algeria Personal Income Tax Rate 2015
Taxable Income (DZD)
Tax on Total Income
It is a tax that applies on the income of individuals
(natural person) and those of
The overall net income is the total net income of the
- The industrial, commercial and craft;
- Benefits for non-commercial professions;
- Income from agriculture;
- Income from the rental of developed and undeveloped
- Income from movable capital;
- Wages, salaries, pensions and annuities
Tax on Professional Activity
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.
Federal Taxes and Levies
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.
Value Added Tax (VAT)
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.
Two different VAT rates apply in Algeria:
A special reduced rate of 7% applies to products,
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.
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.
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.
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
Vocational Training Tax
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.
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
The tax is payable on the profit after company tax at
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 Rates 2013-2014 and Deductions
Algeria Income Tax Rate for Individual Tax
Lowest Individual Tax Rate is 20 %
and Highest Rate is 35%
Taxable Income (DZD)
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
Individuals who are owners or beneficial owners of a home in
Individuals who are tenants in Algeria with a rental term of a
continuous period of at least one year, whether by single or by
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
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
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
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
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
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
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
1% for the portion of interest payments not exceeding DZD 50,000
10% for the portion of the interest payments exceeding DZD
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.
Algeria Due Dates for filing Returns /
Reporting and Payment
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.