Verified Facts
The tax rates in Algeria range from 0% to 35% for individuals and 19% for corporations, with various deductions and exemptions available for residents and non-residents.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Algeria has a territorial tax system, which means that individuals and companies are taxed only on their Algerian-sourced income, regardless of their residency status. However, residents are also subject to tax on their worldwide income, with credits available for taxes paid abroad. To be considered a tax resident in Algeria, an individual must have a permanent home in the country, be present in the country for more than 183 days in a calendar year, or have their center of economic interests in Algeria.
The tax system in Algeria is governed by the Tax Code, which provides the framework for the taxation of individuals and companies. The Tax Code is regularly updated to reflect changes in the country's economic and social landscape. Taxpayers in Algeria are required to file their tax returns with the Direction Générale des Impôts, which is responsible for the collection of taxes and the enforcement of tax laws.
Personal Income Tax
| Income Bracket (DZD) | Tax Rate |
|---|---|
| 0 - 120,000 | 0% |
| 120,001 - 360,000 | 20% |
| 360,001 - 720,000 | 25% |
| 720,001 - 1,440,000 | 30% |
| 1,440,001 and above | 35% |
| Individuals in Algeria are entitled to various deductions and allowances, including a personal allowance of DZD 120,000, as well as deductions for charitable donations, mortgage interest, and medical expenses. Taxpayers are required to file their tax returns by April 30th of each year, and are subject to penalties and fines for late filing or non-compliance. |
Corporate & Business Tax
- The corporate tax rate in Algeria is 19%, with a reduced rate of 10% available for certain industries, such as agriculture and manufacturing.
- Small businesses in Algeria are eligible for tax incentives, including a reduced tax rate of 10% for the first three years of operation.
- Algeria has several free zones, which offer tax exemptions and other incentives to companies that operate within these zones.
- Companies in Algeria are required to register with the tax authorities and obtain a tax identification number in order to conduct business.
- Companies are also required to file their tax returns and pay their taxes on a quarterly basis.
VAT / Sales Tax
- The standard VAT rate in Algeria is 19%, with reduced rates of 7% and 14% available for certain goods and services, such as food and pharmaceuticals.
- Certain goods and services are exempt from VAT, including financial services, education, and healthcare.
- Algeria has a tourist refund scheme, which allows foreign visitors to claim a refund of VAT paid on certain goods and services.
- Businesses in Algeria are required to charge and collect VAT on their sales, and to file their VAT returns on a monthly basis.
For Expats & Foreign Workers
- Tax residency rules in Algeria are based on the 183-day rule, which means that individuals who are present in the country for more than 183 days in a calendar year are considered tax residents.
- Algeria has double taxation treaties with over 45 countries, which help to prevent double taxation and fiscal evasion.
- Expats and foreign workers in Algeria are required to register with the tax authorities and obtain a tax identification number in order to work and live in the country.
- Expats and foreign workers are also subject to social security contributions, which are used to fund pension, healthcare, and unemployment benefits.
- Remittances of foreign currency are subject to tax, and individuals are required to declare their foreign assets and income to the tax authorities.
- Expats and foreign workers may be eligible for tax credits and deductions for taxes paid abroad, and should consult a qualified tax professional to ensure compliance with Algerian tax laws.
Crypto & Investment Income
- Investment income, including dividends, interest, and rental income, is subject to tax in Algeria, and is taxed at the progressive tax rates outlined above.
- Cryptocurrency is considered a taxable asset in Algeria, and is subject to capital gains tax at a rate of 15%.
- Dividends paid to shareholders are subject to tax at a rate of 10%, and are also subject to withholding tax at a rate of 5%.
- Individuals and companies in Algeria are required to declare their investment income and cryptocurrency transactions to the tax authorities, and to pay their taxes on a quarterly basis.