Algeria

Rebates granted to resident companies - Professional Tax

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 AAPI. 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 ten 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 of 10 years for investing companies in specific zones or those creating 500 jobs or more. VAT and custom duties exemptions are also available during the investment phase.

There is also a 10 years temporary exemption from CIT for companies making decisive investment, which have potential for creating jobs and wealth.

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.