Individual - Income determination

Last reviewed - 08 June 2021

Taxable income is determined by deducting from gross salary non-taxable items and employee social security contribution.

Employment income

Employment income is taxable at a marginal rate of 35%.

Monthly salaries not exceeding DZD 30,000 are exempt from PIT.

Equity compensation

Equity compensation is taxable at a marginal rate of 35%.

Business income

Business income is taxable at a marginal rate of 35%.

Capital gains

Capital gains are taxed at 15% for residents and 20% for non-residents.

Dividend income

Dividends are taxed at 15% for both residents and non-residents.

Interest income

Interest is taxed at 10%.

Rental income

Rental incomes are taxed at 7% for collective house rental, 10% for personal house rental, and 15% for real-estate used for professional purposes.

A 15% tax rate in full discharge of tax is levied on undeveloped property rentals in the same manner levied on rental income for trading or professional purposes.

A rate of 10% applies for undeveloped property rental for agricultural use.

Exempt income

Food and transportation primes in special zones and social security primes are exempt from PIT.