Taxable income is determined by deducting from gross salary non-taxable items and employee social security contribution.
Employment income is taxable at a marginal rate of 35%.
Monthly salaries not exceeding DZD 30,000 are exempt from PIT.
Equity compensation is taxable at a marginal rate of 35%.
Business income is taxable at a marginal rate of 35%.
Capital gains are taxed at 15% for residents and 20% for non-residents.
Dividends are taxed at 15% for both residents and non-residents.
Interest is taxed at 10%.
Based on the new taxation regime, rental gross income not exceeding DZD 600,000 will be subject to a discharging withholding tax of:
- 7% on income stemming from the rental of residential properties.
- 15% on income stemming from the rental of unfurnished commercial or professional properties (also applicable to contracts concluded with companies);
- 15% on income stemming from rental of bare lands. This rate will be reduced to 10% in case of agricultural lands.
Where the annual income exceeds the DZD 600,000 threshold, a provisional taxation of 7% will apply on the income irrespective of the nature of the property.
Such payment could be then deducted from the final taxation of the individual annual income. In this case, the individual will be required to file to the annual personal income tax return on which provisional taxation will be deducted as a tax credit from the Personal Income Tax (“PIT”) due amount as determined on the basis of the total annual income.
Article 8 of FL for 2021 provides the PIT exemption of allowances for special living conditions of residence and isolation up to 70% form the basic salary.