Jurisdiction overviewTax in Algeria
Last reviewed: · by TaxProsRated editorial
Key points
Algeria's Direction Generale des Impots (DGI) administers personal income tax (IRG) at progressive 0-35 percent across five brackets, corporate income tax (IBS) at 19/23/26 percent by sector, and TVA at 19 percent standard. Hydrocarbon revenues dominate public finances via a separate Sonatrach framework. Cryptocurrency has been banned since 2018. Algeria has approximately 30 active bilateral tax treaties with no US-DZ DTA.
Who is the tax authority?
The Direction Generale des Impots (DGI), part of the Ministere des Finances, administers Algeria's tax system. Customs falls under the Direction Generale des Douanes (DGD). Large taxpayers deal with the Direction des Grandes Entreprises (DGE), while regional filings go through Directions des Impots de Wilaya.
The Jibaya'tic e-services portal handles electronic filing. DGI has progressively expanded digital compliance since 2020. The credentialed Algerian profession is Expert-Comptable, regulated by the Ordre National des Experts-Comptables.
Substantive law rests on four codes: the Code des Impots Directs et Taxes Assimilees (CIDTA), the Code des Taxes sur le Chiffre d'Affaires (CTCA), the Code des Procedures Fiscales (CPF), and Hydrocarbons Law 19-13 (2019 reform) for petroleum operators.
What is the tax year and when are returns due?
Algeria's tax year is the calendar year (1 January to 31 December). IRG-Salaires (wage tax) is withheld monthly by employers.
TVA-registered businesses file monthly returns by the 20th of the following month. Corporate IBS payers make quarterly advance payments (acomptes provisionnels). Both the IBS annual return and the individual IRG return are due 30 April.
Who counts as an Algerian tax resident?
Under the CIDTA, a person is an Algerian tax resident if any of four conditions applies:
- Maintaining a habitual abode (foyer permanent d'habitation) in Algeria
- Having their principal place of residence in Algeria
- Maintaining their main centre of economic interests in Algeria
- Being physically present in Algeria for more than 183 days in any 365-day period
Residents pay tax on worldwide income. Non-residents pay tax only on Algerian-source income — typically at flat or schedular rates, often 24% for most income categories, with treaty rates applying where a bilateral DTA is in force.
What are the IRG personal income tax rates?
Algeria's personal income tax (Impot sur le Revenu Global, IRG) applies progressive rates across five brackets:
| Annual income (DZD) | IRG rate |
|---|---|
| Up to ~240,000 | 0% |
| ~240,001 to ~480,000 | 23% |
| ~480,001 to ~960,000 | 27% |
| ~960,001 to ~1,440,000 | 30% |
| Over ~1,440,000 | 35% |
Employers withhold IRG-Salaires monthly from wages. Mandatory social contributions (CNAS for employed, CASNOS for self-employed) apply in addition to IRG at progressive rates on both employee and employer sides. Investment income such as dividends from Algerian companies faces a 15% final withholding tax.
How does IBS corporate tax work?
Algeria's corporate income tax (Impot sur les Benefices des Societes, IBS) uses three sector-differentiated rates. Activity classification determines the applicable rate — not just the legal form.
Goods production and agricultural activities. The lowest IBS rate — designed to incentivise domestic manufacturing and food production.
Construction, public works, hydraulic projects, and tourism or thermal activities. Mid-tier rate covering key infrastructure sectors.
The standard rate applying to trading, services, and activities not covered by the two lower rates. Also covers banking and financial services.
Sonatrach drives ~60% of government revenue — ~95% of exports
Petroleum and gas activities fall under Hydrocarbons Law 19-13 (2019 reform), not the standard IBS framework. The 2019 reform liberalised the prior 2013 law to attract renewed foreign investment. Operators face a Tax on Hydrocarbon Income (TIPH) plus a royalty framework distinct from general CIT. Joint-venture and production-sharing-agreement structures require specialist analysis — general IBS rules do not apply.
Withholding tax on dividends paid to non-residents is 15% (treaty rates apply). Royalties default to 24%. Technical-service fees default to 24%. Interest defaults to 10%. Tax losses carry forward for four years. Carryback is not available. Algeria has not yet adopted OECD Pillar Two global minimum tax.
What are the TVA (VAT) rates?
Algeria's value-added tax (Taxe sur la Valeur Ajoutee, TVA) is governed by the Code des Taxes sur le Chiffre d'Affaires (CTCA).
| TVA rate | Applies to |
|---|---|
| 19% | Standard — most goods and services |
| 9% | Basic foodstuffs, selected agricultural inputs, certain other categories |
| 0% | Exports (zero-rated, not exempt) |
Mandatory TVA registration applies once annual turnover exceeds DZD 30 million. A reverse-charge mechanism applies on imported services. The Taxe sur les Activites Professionnelles (TAP) applies to certain banking and professional transactions at low flat rates as an additional turnover-based levy.
How are cryptoassets treated?
Algeria has taken the most restrictive position in Africa on cryptoassets. The Loi de Finances 2018 explicitly banned the use, possession, and transfer of cryptocurrency within Algeria.
The Bank of Algeria enforces a blanket prohibition on cryptocurrency transactions under the 2018 Finance Law. Individuals and firms engaging in cryptocurrency-related activities face regulatory exposure equivalent to foreign-exchange violation sanctions. There is no separate tax-assessment framework for crypto gains — because the activity is legally prohibited, no formal taxation regime has been enacted. A dedicated virtual-asset service provider (CASP) framework remains pending parliamentary action.
No dedicated crypto register, exchange-listing licence, or DGI ruling framework exists as of 2026. If declared, gains would technically fall under the nearest existing income-tax category, but practitioners should treat crypto activity as carrying significant prohibition-related risk.
What is the treaty network?
Algeria has approximately 30 active bilateral double-tax agreements (DTAs). The network is strong by North African standards — France is the anchor treaty, reflecting the deep economic and diaspora relationship. There is no Algeria-USA DTA, meaning US persons with Algerian income face potential full double-tax exposure without treaty relief.
Algeria has signed the OECD MLI but had not ratified it as of late 2024. Treaty modifications from the MLI therefore do not yet apply — use bilateral treaty texts directly. Algeria adopted the Common Reporting Standard (CRS) framework, and Algerian financial institutions report foreign-resident account holders to DGI for exchange with CRS partners. Standard audit statute of limitations is four years; extended for fraud or non-filing.
Where does Algeria sit in the Maghreb-North Africa cohort?
Algeria anchors the Maghreb hydrocarbon-state cohort — the group of North African Arab-League countries with hydrocarbon-dominant fiscal profiles. The North Africa-Arab League tax landscape splits into five distinct archetypes:
Algeria's Maghreb neighbors Morocco and Tunisia run more diversified tax bases with stronger tourism and services sectors. Libya shares the hydrocarbon-dominant fiscal profile. Algeria's OPEC+ membership and AfCFTA signatory status place it in overlapping regional trade frameworks, but the DZD managed float and capital controls remain material for cross-border structuring.
Common pitfalls and compliance pressure-points
Foreign companies and individuals frequently run into Algeria-specific compliance traps:
US citizens and residents with Algerian income have no bilateral treaty to reduce withholding rates or resolve residence conflicts. Default 24% non-resident withholding on most income types applies. US-based practitioners must rely on US foreign-tax-credit mechanics rather than treaty rates.
Companies providing services to the petroleum sector face a classification decision: general IBS (19/23/26%) vs the Hydrocarbons Law 19-13 TIPH framework. The 2019 reform changed the boundary — practitioners on oil-and-gas adjacent activities must check current qualifying criteria.
The Loi de Finances 2018 prohibits use, possession, and transfer of cryptocurrency. There is no taxable framework because the activity is banned. Individuals engaging in crypto face regulatory sanctions, not just tax risk.
The 7-percentage-point gap between 19% (production) and 26% (services) makes activity classification a material planning decision. Mixed-activity companies with both manufacturing and service revenue need clear legal analysis of how DGI apportions the applicable rates.
The Algerian Dinar operates under a managed float with Bank of Algeria reference-rate conversions. Foreign exchange controls apply to outbound capital movements. USD-denominated contracts face DZD conversion obligations, and profit repatriation requires prior Bank of Algeria clearance.
Algeria signed the OECD Multilateral Instrument but had not ratified it as of late 2024. Treaty anti-avoidance modifications from the MLI do not yet apply — rely on bilateral treaty texts rather than assuming OECD model provisions are in force.
Foreign energy companies entering Algeria via joint venture with Sonatrach face a different contractual and fiscal framework than production-sharing agreement structures. The 2019 Hydrocarbons Law liberalised both models — but the two carry meaningfully different total effective tax rates.
Algeria is an AfCFTA signatory but implementation schedules for tariff liberalisation and customs harmonisation are phased over multiple years. Trade-preference claims under AfCFTA require verification of the applicable schedule for specific goods categories before relying on preferential treatment.
Currency framework — the Algerian Dinar
The Algerian Dinar (DZD) operates under a managed float regime administered by the Bank of Algeria. The DZD has experienced periods of depreciation tied to oil-revenue cycles — hydrocarbon receipts in USD are converted at Bank of Algeria reference rates. Tax thresholds, penalties, and statutory payments are all DZD-denominated and not automatically indexed for inflation. Foreign entities holding DZD-denominated receivables should factor conversion risk and Bank of Algeria clearance requirements into cash-flow modelling.
OPEC+ membership and regional trade frameworks
Algeria's OPEC+ membership means hydrocarbon-export and production decisions are coordinated multilaterally — a factor for energy-sector due diligence and transfer-pricing comparables. AfCFTA signatory status opens intra-African trade preferences, though schedules are still phasing in. Greater Arab Free Trade Area (GAFTA) membership provides tariff preferences with Arab League partners. Businesses active across both the Maghreb and sub-Saharan African markets benefit from mapping Algeria's overlapping treaty and trade-agreement network before structuring cross-border flows.
When should you talk to an Algerian Expert-Comptable or Tax-Adviser?
Some Algeria filings are routine and handled through the Jibaya'tic portal. Other situations call for a qualified Expert-Comptable (registered with the Ordre National des Experts-Comptables) or an experienced Tax-Adviser with Algerian IBS or hydrocarbon-sector expertise:
- Your business or income involves hydrocarbon-sector activities under Hydrocarbons Law 19-13
- Your structure involves a Sonatrach joint venture or production-sharing agreement
- You are a US person or resident of a country without a bilateral DTA with Algeria
- Your company's activities span production (19% IBS) and services (26% IBS) — rate apportionment matters
- Your company is above the DGI threshold for transfer-pricing documentation under the post-2015 BEPS-aligned rules
- You received a DGI notice of assessment, tax audit letter (avis de verification), or back-tax query
- You are converting foreign-currency earnings under Bank of Algeria rules
- You are structuring cross-border flows using AfCFTA or GAFTA preferences for the first time
You can find vetted Algeria practitioners through the directory below.
This page presents general information. It is not personal guidance for your specific situation. Tax rules change. Always check current figures on the DGI website (mfdgi.gov.dz) or with a licensed Algerian practitioner before filing.
Frequently asked
Who is the Algerian tax authority?
Direction Generale des Impots (DGI), under the Ministere des Finances. Large taxpayers use Direction des Grandes Entreprises (DGE). Regional filings go through Directions des Impots de Wilaya. Electronic filing via Jibaya'tic portal. Expert-Comptable regulated by the Ordre National des Experts-Comptables.
When is the Algerian annual return due?
Personal IRG returns and corporate IBS annual returns are both due 30 April of the year following the calendar tax year. IRG-Salaires is withheld monthly by employers. TVA monthly by 20th of following month. IBS quarterly advance payments apply.
Who is an Algerian tax resident?
Tax residents maintain habitual abode in Algeria, OR have principal residence there, OR maintain main centre of economic interests in Algeria, OR are physically present more than 183 days in any 365-day period. Residents pay tax on worldwide income. Non-residents pay on Algerian-source income only.
What are the Algerian personal income tax rates?
IRG (Impot sur le Revenu Global) applies five brackets: 0% up to about DZD 240,000; 23% on 240,001-480,000; 27% on 480,001-960,000; 30% on 960,001-1,440,000; 35% above 1,440,000. Dividends 15% final withholding. CNAS/CASNOS social contributions apply additionally.
How does Algeria's corporate tax work?
IBS (Impot sur les Benefices des Societes) uses three sector rates: 19% for goods production and agriculture; 23% for construction, public works, and tourism; 26% for trading and services. Hydrocarbons operate under Hydrocarbons Law 19-13 with a separate TIPH framework. Non-resident dividend withholding 15%. Losses carry forward 4 years. Pillar Two not yet adopted.
What is the Algerian TVA rate?
Standard TVA is 19% under the CTCA. Reduced 9% applies to basic foodstuffs and selected agricultural inputs. Exports are zero-rated. Mandatory TVA registration above DZD 30 million annual turnover. TAP applies to certain professional and banking transactions.
How does Algeria treat cryptoassets?
Cryptocurrency is banned in Algeria under the Loi de Finances 2018. The Bank of Algeria prohibits use, possession, and transfer of cryptocurrency. No separate tax framework exists because the activity is legally prohibited. A dedicated CASP framework remains pending.
How many tax treaties does Algeria have?
Approximately 30 active bilateral DTAs. Partners include France (anchor), Belgium, Spain, Italy, Germany, UK, China, Russia, South Korea, Turkey, Tunisia, Morocco, Egypt, and UAE, among others. There is no Algeria-USA DTA. Algeria signed but had not ratified the OECD MLI as of late 2024.
Major tax firms in Algeria
Verified directory of the largest accounting + tax practices operating in Algeria. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Big 4
Deloitte Algeria
- Big 4
Deloitte Algérie
- Big 4
EY Algeria
- Big 4
EY Algérie
- Big 4
KPMG Algérie
- Big 4
PwC Algérie
- National
Forvis Mazars Algeria
- National
RSM Algeria
- Regional
AFC Grant Thornton
- Regional
Cabinet d'Audit Hamza et Associes
Find a tax pro in Algeria
Browse credentialed pros serving Algeria — filter by specialty, language, and credential type.
Browse the Algeria directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- DGI (Algeria) · accessed
- Government of Algeria · accessed
- Government of Algeria · accessed
- Ministry of Finance (Algeria) · accessed
- PwC Worldwide Tax Summaries · accessed
- Government of Algeria · accessed
- Government of Algeria · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Algeria as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.