Tax in Algeria

Who is the tax authority and where do filings live?

Algeria's Direction Generale des Impots (DGI), under the Ministry of Finance, administers Algeria's tax system [SC1]. Customs is administered by Direction Generale des Douanes (DGD). DGI operates through Direction des Grandes Entreprises (DGE) for large taxpayers and regional Directions des Impots de Wilaya. Filings flow through the Jibaya'tic e-services portal — Algeria has progressively expanded electronic filing capabilities since 2020. The credentialed Algerian tax-and-accounting professions are Expert-Comptable regulated by the Ordre National des Experts-Comptables. Substantive law: Code des Impots Directs et Taxes Assimilees (CIDTA), Code des Taxes sur le Chiffre d'Affaires (CTCA), Code des Procedures Fiscales (CPF), Hydrocarbons Law 19-13 (2019 reform replacing prior 2013 framework), and successive Lois de Finances. Algeria is a Greater Arab Free Trade Area (GAFTA) member.

What is the tax year and when are returns due?

The individual tax year is the calendar year. Personal income tax returns are due 30 April of the year following the tax year [SC1]. Wage earners' income tax (IRG-Salaires) is fully withheld monthly by employers under the IRG framework. Corporate fiscal years align with the calendar year (with limited exception); annual corporate IBS returns are due 30 April. Quarterly advance corporate tax instalments apply (acomptes provisionnels). TVA returns are filed monthly by the 20th of the following month under the standard regime. Annual financial statements are required for in-scope corporations.

Who is an Algerian tax resident?

Under the CIDTA, an individual is tax resident in Algeria if (a) maintaining their habitual abode (foyer permanent d'habitation) in Algeria, OR (b) having their principal residence in Algeria, OR (c) maintaining their main centre of economic interests in Algeria, OR (d) being physically present in Algeria for more than 183 days in any 365-day period [SC2]. Residents are taxed on worldwide income; non-residents on Algerian-source income at flat or schedular rates (typically 24 percent on most categories with treaty rates applying). Treaty tie-breakers under the OECD Model framework apply for dual-residents.

What are the personal income tax rates?

Personal income tax brackets for 2024: 0 percent up to DZD 240,000 of annual taxable income; 23 percent on DZD 240,001-480,000; 27 percent on DZD 480,001-960,000; 30 percent on DZD 960,001-1,920,000; 33 percent on DZD 1,920,001-3,840,000; and 35 percent above DZD 3,840,000 [SC1]. Investment income (dividends from Algerian companies) face 15 percent withholding (final). Capital gains face specific rates with progressive holding-period reductions. Mandatory CNAS/CASNOS social security contributions apply at progressive rates (employee + employer side).

How does Algeria's corporate tax work?

The corporate income tax (Impot sur les Benefices des Societes, IBS) operates under sector-specific rates: 19 percent on production-of-goods activities; 23 percent on building, public works, hydraulic, and tourism/thermal activities; 26 percent on trading, services, and other activities not specified [SC2]. Hydrocarbons sector is taxed under the Hydrocarbons Law 19-13 (2019 reform replacing prior 2013 framework) with specific Tax on Hydrocarbon Income (TIPH) and Royalty framework — the 2019 reform progressively liberalised the prior framework attracting renewed foreign investment. Banking-sector elevated rate applies. Withholding tax on dividends to non-residents is 15 percent (treaty rates apply); royalties 24 percent default; technical-services 24 percent default; interest 10 percent default. Pillar Two implementation pending. Tax loss carryforwards: 4 years; carryback unavailable.

What about TVA (VAT)?

The standard VAT rate (Taxe sur la Valeur Ajoutee, TVA) is 19 percent under the CTCA [SC3]. Reduced rate of 9 percent applies on basic foodstuffs, certain agricultural inputs, and specified other categories. Zero-rated supplies include exports. Registration threshold is DZD 30 million annual turnover (above which mandatory). Reverse-charge mechanism applies on imported services. The Tax on Banking Operations (TAP) at 0.4 percent applies on banking transactions.

How are cryptoassets taxed?

Algeria has taken a restrictive position on cryptoassets. The Loi de Finances 2018 explicitly prohibited the use, possession, and transfer of cryptocurrency in Algeria [SC2]. Practitioners and individuals operating cryptocurrency-related activities face FERA-equivalent violation exposure. Where declared (rare given prohibition), gains would technically fall under existing income-tax categories at applicable rates pending dedicated framework. Dedicated CASP framework remains pending parliamentary action.

What is the treaty network and what are the audit triggers?

Algeria has approximately 50 active double tax treaties [SC4]. Algeria has not signed the OECD MLI as of late 2024. Audit triggers include disproportionate VAT credits, transfer-pricing non-compliance, undeclared bank deposits flagged via expanding CRS exchanges (Algeria adopted CRS framework under successive amendments), and the post-2020 Jibaya'tic data reconciliation framework. Standard SOL is 4 years; extended for fraud or non-filing.

What are the common penalties and pitfalls for foreigners?

The Algerian penalty framework imposes administrative-fine sanctions for late filings, failure to file, incorrect declarations (50-100 percent surcharge), and failure to maintain accounting records [SC5]. Default interest accrues at the prevailing rate plus statutory margin. Tax-evasion criminal exposure under specific provisions carries fines and imprisonment for grossly-significant evasion. Common foreign-national pitfalls: (1) the Hydrocarbons Law 19-13 (2019 reform) substantially liberalised the prior framework — practitioners on oil-and-gas matters should track post-2019 framework developments; (2) the sector-specific IBS rate framework (19/23/26 percent) requires careful activity-classification analysis; (3) Pillar Two implementation pending; (4) the Loi de Finances 2018 cryptocurrency prohibition creates substantial exposure for crypto-related activity; (5) cross-border digital VAT framework progressively expanded; (6) the Jibaya'tic e-filing mandate creates compliance overhead; (7) MLI not yet signed — treaty modifications continue via bilateral protocols; (8) the centre-of-economic-interests test creates broad domiciliary-tax-attachment; (9) the Tax on Banking Operations (TAP) 0.4 percent layers on banking flows; (10) the post-2020 e-filing infrastructure requires careful technological-system integration for foreign-managed enterprises.