Accounting and legal

Accounting and tax

    what is the tax and legal considerations for Algeria business
  1. The standard corporate tax rate levied on all net profits derived from Algeria is 26% for trade and service activities whereas production of goods, tourism and construction pay a reduced rates of up to 19%. Tax returns must be filed before the 30th of April;
  2. The standard VAT rate levied on most goods and services in Algeria is 17%. A reduced rate of 7% applies to various basic items e.g. construction and internet services. Exports are however not taxed;
  3. Capital gains are subject to standard corporate tax rate of 26%. Assets related to industrial, commercial and agriculture activities however benefit from reduced rates of i) 16% if held for less than 3 years or ii) 7.5% if held for a longer period;
  4. Payments made to non-resident companies are subject to withholding tax, at rates of i) 15% for dividends, ii) 10% for interest iii) 24% for royalties payments and iv) 15% for branches remittances, unless the rate is reduced by tax treaty;
  5. Employers must remit social security contributions to the authorities on all salaries at the rate of 26%. There is no payroll tax;
  6. The rate of tax payable on transfer of land or buildings is 5% of the value plus an additional 1% for the land publicity fee;
  7. Other taxes include i) 2% tax on turnover, ii) 3% tax on importation of services and iii) 2% training tax on professional training and apprenticeship;
  8. Algeria has signed double taxation treaties with 29 countries and dependent territories, including France, Italy, China, Canada, Indonesia and the United Arab Emirates to reduce withholding tax on payments abroad;
  9. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.

Contact us

For additional information on our accounting and tax services in Algeria, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon