Algeria

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

Based on the new taxation regime (effective starting from 01 January 2023), rental gross income not exceeding DZD 1,800,000 will be subject to a discharging withholding tax (WHT) 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 1,800,000 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 PIT return on which provisional taxation will be deducted as a tax credit from the PIT due amount as determined on the basis of the total annual income.

Exempt income

Starting from 01 January 2021 provides the PIT exemption of allowances for special living conditions of residence and isolation up to 70% of the basic salary.