Value-added tax (VAT)
VAT is applied on the supply of goods or services in Algeria. It includes all economic activities conducted in Algeria. The standard VAT rate is 19%. The reduced rate is 9%, applying to various basic items listed by law.
Monthly VAT returns and payments are due by the 20th day of the following month.
Algerian imports are subject to payment of customs duties in the following increments: duty-free, 5%, 15%, 30%, or 60%.
A list of banned equipment for importation has been published in January 2018.
In July 2018, another measure has been introduced by CFL 2018 to discourage importing certain goods. For this purpose, an additional provisional safeguard right (Droit Additionnel Provisiore de Sauvergarde or DAPS) has been set up on a limited list of imported goods. DAPS rates range from 30% to 200%.
For 2022, a new list of 2,608 goods subject to DAPS has been released.
Specific customs exemptions and temporary admission regimes are granted to the oil and gas sector and to investments under the incentives tax regime of the National Agency of Investment (ANDI in French).
Bear in mind that goods originated from countries having signed free trade agreements (such as the European Union [EU] and Arab Free Exchange Zone [GZALE]) with Algeria benefit from a customs preferential regime (reduced customs duties rates or exemptions).
All tobacco products (including electronic cigarettes and similar) are subject to an additional excise tax set at the rate of 5% starting from 2022 (to be declared and paid by manufacturers).
An annual property tax is levied on real estates in Algeria. Rates depend on the location of real estate.
Wealth tax is calculated as follows:
|Value of the holdings (DZD)||Rate (%)|
|Less than 100,000,000||0|
|100,000,001 to 150,000,000||0.15|
|150,000,001 to 250,000,000||0.25|
|250,000,001 to 350,000,000||0.35|
|350,000,001 to 450,000,000||0.50|
|More than 450,000,000||1.00|
A transfer tax is applicable to land, buildings, and ongoing business at a rate of 5% for registration fees, plus 1% tax applicable for publication formalities of land and building transfer of ownership. Additionally, registration duties are due on the transfer of shares or movable assets and on the merger, demerger, increase, or decrease of the share capital of existing companies.
Stamp duty is levied at varying rates on transactions, including the execution of various documents and deeds.
PIT is withheld on salary and assimilated income (minus employee social security contributions) by applying the progressive scale rates (with a maximum rate of 35%). Additionally, training tax and apprenticeship tax are each levied at the rate of 1% of the payroll cost.
Social security contributions
Social security contributions are levied at the rate of 35% on the gross salary (26% borne by the employer and 9% borne by the employee).
Bank domiciliation tax
A 4% tax (Taxe de domiciliation bancaire) applies on the importation of services.
This tax is reduced to 0.5% for the importation of goods or merchandise, without the amount of the tax being less than DZD 20,000.
Assets that may cause environmental damage are subject to a pollution tax.