Accounting Outsourcing and
Tax compliance in Algeria
Algeria– Accounting Outsourcing and Tax Compliance
Global Expansion Plus provides accounting outsourcing and tax compliance in Algeria. We provide services with the support of our local accountants and tax specialists. We will perform bookkeeping, accounting, and filing a tax return on your behalf bearing all associated compliance risks.
Every state will put in place a tax system to raise revenue. Algeria is no different. Whether a resident or a non-resident, individual or corporate, there is the need to understand taxation in Algeria. Otherwise, you are bound to get on the wrong side of the law.
Algeria in facts
Corporate income tax (CIT) in Algeria
Algerian tax code applies a standard tax regime for all companies registered in Algeria and used worldwide. The following standard taxes include the following. The profits are taxed based on the activities:
If companies have more than one type of activity, they should provide proper managerial accounting records to separate them. If companies fail to split the activities, they are taxed at the highest rate.
The minimum corporate tax amount is DZD 10,000, even if the tax return shows losses.
Tax on business activity
Tax on business activity (TAP) is an additional corporate tax that is counted based on the invoices revenue:
- 1% for the production and manufacturing activities;
- 2% for construction, public and hydraulic engineering and (tax allowance of 25% is available);
- 3% for oil and gas pipelines;
Value-added Tax (VAT) in Algeria
Goods and services are subject to VAT taxation. The value-added tax standard rate is 19%, with a reduced 9% for some goods listed by the Tax Code. All exported goods and services are taxed on 0% VAT.
VAT return and payments are submitted by the 20th day of the upcoming month.
Personal Income tax (PIT) in Algeria
PIT is applied to an individual’s income on the progressive scale:
Withholding Tax (WHT) in Algeria
Withholding tax of 24% is applied to service contracts of foreign companies in Algeria. The base for calculation is the gross contract amount.
Payroll-Related Taxation in Algeria
Personal income tax is applied to the salary and wages at a rate of 35%. 1% of training and traineeship tax is also placed on the payroll cost.
Social security contributions
Employers are paying 26% of gross salary as social security contribution while employees are paying 9% of their gross wage out of their gross salary. The social security contribution fund is covering retirement and unemployment and sick leaves, and others.
Import/ Export related taxation in Algeria
Custom duties are paid for the imported goods at a rate ranging from 5% up to 60%.
To stimulate the investment, custom duties for the oil and gas products are temporarily were canceled.
Excise taxes are levied on all tobacco products.