Algeria

Individual - Significant developments

Last reviewed - 01 June 2022
    • FL for 2022 introduces several adjustments to the application of the Single Flat-rate Tax “SFT” regime, in its articles 73 and 74 amending articles 282 ter and quarter of the Algerian Tax Code. Main changes include:
      • Decreasing the eligibility threshold of the SFT regime from Million DZD 15 to Million DZD 8;
      • The exclusion of "civil companies of a professional nature" from the SFT regime.
      • And lastly, the exclusion of non-commercial professions from this tax regime, following the introduction of a new simplified tax regime for this category of taxpayers.

     

    • Taxation of capital gains arising from the disposal of movable and immovable properties: Articles 23, 24 and 25 of the FL2022 amend Articles 77, 78, 79 bis of the Algerian Tax Code governing the methods of taxation of capital gain generated on the transfer of developed or undeveloped properties.

    The new provisions seek to reduce the tax burden on capital gain taxation (CGT). CGT taxable base will take into consideration:

    • Taxes, duties and transaction related fees and costs are deductible from the CGT base.
    • It will also be possible to revise the purchase price or the value of creation of the property by including the costs of acquisition, maintenance, and improvement costs if any, provided that these are duly justified. This is to be considered up to a limit of 30% of the purchase price or the value of creation.

    Where the transaction relates to movables properties, any incurred tax, duty and transaction related fees and costs will also be deducted from the CGT taxable base.