Individual - Significant developments

Last reviewed - 01 June 2022

Finance Law (FL) 2022 introduces several adjustments to the application of the single flat-rate tax (SFT) regime. Main changes include:

  • Decreasing the eligibility threshold of the SFT regime from 15 million to 8 million Algerian dinars (DZD).
  • The exclusion of ’civil companies of a professional nature‘ from the SFT regime.
  • The exclusion of non-commercial professions from this tax regime, following the introduction of a new simplified tax regime for this category of taxpayers.

FL 2022 also amends the methods of taxation of capital gain generated on the transfer of developed or undeveloped properties. The new provisions seek to reduce the capital gain tax (CGT) burden such that the CGT base will take into consideration the following:

  • 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.