Algeria

Corporate - Tax credits and incentives

Last reviewed - 01 June 2020

Investment incentives

Tax incentives can be granted to new investors, subject to the application of a specific request with the ANDI. The tax incentives can be granted for the investment phase and for the exploitation phase. They can be granted for a period of three years or five years, depending on the kind and the size of the business.

Other incentives can be granted for start-up businesses as per the introductions of FL 2020 under CIT and VAT to encourage youth investment.

Many tax regimes and tax holidays/incentives are available to attract foreign direct investors in Algeria. For example, there is a temporary exemption from IBS for investing companies creating 100 jobs or more. VAT and custom duties exemptions are also available during the investment phase.

There is also a temporary exemption from IBS for companies that invest in certain strategic sectors, such as advanced technologies, the food industry, mechanics, and the automotive sector.

There is a five-year reduction of IBS for companies whose securities are introduced on the stock exchange.

Foreign tax credit

Algerian tax law does not provide for unilateral tax relief. A DTT, however, may provide for bilateral relief.