Algeria Tax Rates 2026: Personal Income Tax, Corporate Tax, VAT and Withholding

Official Algeria tax law for 2026

Algeria's tax system is primarily administered through the Code des Impôts Directs et Taxes Assimilées (CIDTA), the Code des Taxes sur le Chiffre d'Affaires and other fiscal codes, as amended by annual finance laws. The DGI published the official 2026 editions of Algeria's principal tax codes in 2026.

Algeria personal income tax rates - IRG 2026

The progressive IRG scale in Article 104 of the CIDTA, as presented by the DGI, is based on annual taxable income. The current bands are:

The rates apply progressively by income fraction rather than applying the highest marginal rate to the whole income.

Salary income and withholding tax

For employees, the DGI calculates salary IRG by monthly application of the progressive scale. Salary income up to DZD 30,000 per month is fully exempt. For employees earning between DZD 30,001 and DZD 35,000, the calculation includes the standard 40% relief and an additional relief formula. Salary above DZD 35,000 remains subject to the progressive scale after the applicable 40% relief, within the statutory minimum and maximum limits.

Non-monthly remuneration, allowances, bonuses, gratuities and salary adjustments treated as a separate monthly payment are generally subject to withholding at 10%. Certain occasional intellectual activities are also subject to specific 10% or 15% final withholding rates.

Tax residence and non-residents

Individuals having their tax domicile in Algeria are generally subject to IRG under the residence rules of the CIDTA, whereas persons whose tax domicile is outside Algeria are taxed on Algerian-source income in accordance with the Code and applicable tax treaties. Residence questions can depend on a permanent home, principal place of residence, centre of main interests, professional activity and other statutory connecting factors.

Algerian-source income can include income from property, business or professional activities exercised in Algeria and other payments treated as Algerian-source under the CIDTA. A double-tax treaty may modify domestic treatment.

Algeria corporate income tax rates - IBS 2026

Article 150 of the CIDTA provides different standard IBS rates according to the company's activity:

Where a company simultaneously conducts activities subject to different rates, taxable profits are determined according to the turnover attributable to the respective activities under the applicable rules. The DGI also identifies a reduced 10% rate for qualifying reinvested profits, subject to statutory conditions including qualifying investment and holding requirements.

Foreign companies, branches and withholding tax

Foreign enterprises without a permanent professional installation in Algeria may be subject to withholding-based taxation on Algerian turnover under the rules applicable to qualifying contracts and services. The DGI states that a 24% statutory withholding rate may apply to the gross turnover concerned, with specified reductions in the tax base for certain international leasing and software arrangements.

Net profits transferred by an Algerian branch or other qualifying professional installation of a non-resident company are treated similarly to dividends and are subject to a 15% withholding tax under the current DGI guidance, subject to any applicable treaty relief.

Algeria VAT rates 2026

Algeria's value added tax (TVA) applies to taxable turnover under the real and simplified regimes. The current DGI guidance states two principal VAT rates:

Taxpayers subject to the Impôt Forfaitaire Unique (IFU) are generally outside the VAT regime, while taxpayers under the real or simplified regime may be required to charge, report and remit VAT. The deduction of input VAT is subject to documentation and payment conditions prescribed by the Code.

Professional activity tax (TAP) abolished; Local Solidarity Tax applies in limited sectors

The old version of this page described a general Tax on Professional Activity (TAP) of 2%. That information is no longer current. Algeria abolished TAP under the 2024 reforms. A Local Solidarity Tax (Taxe Locale de Solidarité - TLS) now applies to specified activities, notably hydrocarbon pipeline transportation and mining activities, under the current DGI rules.

Single flat tax (IFU)

The Impôt Forfaitaire Unique is a simplified regime for eligible taxpayers. The DGI currently indicates an annual turnover or professional-receipts threshold of DZD 8,000,000 for the IFU regime, subject to excluded activities and other statutory conditions. Taxpayers exceeding the threshold under the statutory rules move to the real or simplified regime, as applicable.

Other taxes and levies

Depending on the taxpayer, transaction and activity, other Algerian taxes may include registration duties, stamp duty, property taxation, wealth tax, training and apprenticeship taxes, local solidarity tax and sector-specific fiscal charges. The tax base and rate depend on the applicable fiscal code and annual Finance Law.

For 2026, the DGI states that net taxable wealth exceeding DZD 100,000,000 is within the scope of Algeria's wealth tax for individuals, with progressive rates from 0.15% to 1% above the statutory threshold.

Algeria tax return and payment deadlines

Under the general rules, taxpayers under the real regime file the monthly G50 declaration within the first 20 days of the following month for applicable taxes, instalments and withholding amounts. The standard annual IBS return (G4) and related fiscal statements are ordinarily due by 30 April, and the IBS liquidation balance is ordinarily due by 20 May.

For returns concerning fiscal year 2025, the DGI announced exceptional extensions in 2026: annual results declarations G4 and G11, their annexes, and the annual salary declaration G29 were extended to 30 June 2026; the annual individual income declaration G1 was extended to 30 July 2026. Taxpayers should therefore verify the DGI fiscal calendar each year because statutory deadlines may be extended by official notice.

Historical Algeria tax rates: 2013-2017

The following rate table is retained for historical research only. It is not the current 2026 IRG scale.

Historical corporate, VAT and activity-tax information

Earlier versions of this article referred to corporate tax rates of 19% or 23% in different periods, VAT rates of 7% and 17%, a 2% professional activity tax, and older single-flat-tax rates. Those figures relate to earlier tax years and should not be used for 2026 compliance. Current rates and regimes are set out above.

Historical residence, capital gains and withholding material

The earlier article also described tax residence, non-resident Algerian-source income, capital-gains treatment, dividends, interest, directors' fees, branch taxation and loss carry-forwards. These topics remain relevant, but their applicable rates and conditions must be determined under the current CIDTA, Finance Law and any applicable double-tax treaty.