Algeria

Corporate - Tax credits and incentives

Last reviewed - 01 June 2022

Rebates granted to resident companies

A 25% rebate applies to:

  • The amount of revenue from building, public works, and hydraulic engineering activities.

A 30% rebate applies to:

  • The amount of wholesale transactions.
  • The amount of retail sales of products whose retail price includes more than 50% indirect duty.

A 50% rebate applies to:

  • The amount of wholesale transactions involving products whose retail price includes more than 50% indirect duties.
  • The amount of retail sales transactions relating to medicinal products on the double condition that:
    • it is classified as a strategic good in accordance with the legislation and regulations in force, and
    • the retail sales margin is between 10% and 30%.

A 75% rebate applies to:

  • The amount of retail sales operations of super, normal, unleaded petrol, diesel, LPG/C, and CNG.
  • The turnover realised for the installation of LPG/C kits.

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 under CIT, TPA, customs duties, 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 CIT 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 CIT 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 CIT 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.