| Algeria Income Tax Rates Algeria personal income tax rates for 2009:
Taxable Income / Tax Rate %
DZD 0 - 120,000 0%
DZD 120,000 - 360,000 20%
DZD 360,000 - 1,440,000 30%
Above DZD 1,440,000 35%
Individuals in Algeria are subject to taxes below:
1) 'Tax on total income' (impôt sur le revenu global -IRG) when you make an income corresponding to one of the following categories:
. Profits in industrial, commercial and craft;
. Non-commercial profits;
. Income from agriculture;
. Income from rental properties built and not built;
. Income from movable capital;
. Salaries, wages, pensions and annuities.
2) 'Tax on professional activity' (taxe sur l'activité professionnelle - TAP), if you operate a business whose profits fall into the category of industrial and commercial income, or non-commercial benefits.
3) 'Land tax' (taxe foncière - TF) under your properties built or not built except those exempted by law.
4) 'Value added tax' (taxe sur la valeur ajoutée - TVA) on sales operations carried out.
Tax year: Tax year in Algeria begins on 1 January and finishes on 31 December of the same year.
Wealth Tax: Wealth tax for residents is assessed on a worldwide basis. In Algeria, wealth is taxed on a progressive scale up to 1.5%. Where an individual has paid a similar tax on non Algerian assets, this tax may be deducted from the tax due in Algeria. Nonresidents are subject to Algerian wealth tax with respect to property deemed or actually located in Algeria.
Algeria Corporate Tax Rates. Algeria corporate income tax rate for 2009 is 25% for companies in the services sector except those who are in the tourism sector.
. For companies in the production sector, the corporate tax rate is 19%.
Corporations in Algeria are subject to taxes below:
1) 'Tax on corporate profits' (impôt sur les bénéfices des sociétés - IBS) on all income earned in the part of your operations, including gains;
2) 'Tax on professional activity' (taxe sur l'activité professionnelle - TAP);
3) 'Land tax' (taxe foncière - TF);
4) 'Value added tax' (taxe sur la valeur ajoutée - TVA)
Tax rate for foreign companies: Foreign companies are taxed on the profits they make in Algeria.
Alternative Minimum Tax: DZD 5,000 per year is the minimum corporate tax in Algeria.
Capital gains taxation: Capital gains are taxed as ordinary income in Algeria. For certain assets, 35% relief is given where the assets have been held for up to 3 years, or 70% where the assets have been held for a longer period.
Main allowable deductions and tax credit: Expenses are deductible for depreciation, amortization, reserves, rents for premises and equipment, wages, etc.
Branch Remittance Tax: There's no branch remittance tax in Algeria.
Real Property Tax: Property tax is charged on developed land; tax holidays may be provided for new buildings and those located in specified development areas in Algeria.
Social Security Tax: Social security tax funds both pensions and health care. The employer pays 26% of gross salary and the employee pays 9% of pre-tax salary.
Transfer Tax: A transfer tax is applicable to land and buildings at a rate of 5% of the value, plus a 1% tax for registration.
Withholding Tax
Dividends: Dividends and profit distributions paid to a nonresident company are subject to a 15% withholding tax unless the tax rate is reduced under an applicable tax treaty.
Interest: Interest paid to a nonresident is generally subject to a 10% withholding tax; a 50% rate is applicable to bearer bonds. The tax rate may be reduced under an applicable tax treaty.
Royalties: The withholding tax on royalties is 24%, unless the tax rate is reduced under an applicable tax treaty. The same tax rate applies to gains on disposals of shares in an Algerian company by a nonresident.
Algeria Value Added Tax (VAT) RatesThe standard rate of Value added tax (TVA) in Algeria is 17%
Reduced tax rate 14%: On certain semifinished products.
7% (special reduced rate): Essential foodstuffs and medicines in general.
Exports are zero rated.
Other Consumption Taxes in Algeria
A consumption tax (taxe intérieure de consommation) is levied on several products : Beer, tobacco and matches (with a tax rate definied per hl and kg) ; on salmon, coffee, some fruits, alcohol, all-terrain vehicles, etc. (with a rate that varies between 10 and 100%).
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