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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The tax year begins on 1 January and finishes on 31 December of the same year.
Accounting Standards
The Act 07-11 of 25 November 2007 on the financial accounting system has ended the rule of the national accounting plan dating from 1975; it was enforcement in 2009. This law aims to harmonize the Algerian accounting plan with the international standards (IFRS) of the IASB. New accounting standards largely based on these IFRS have been officially adopted.
Accounting Regulation Bodies
National Popular Assembly
Accounting Reports
Accounting structure includes: the balance sheet, the profit and loss account and the notes to the accounts.
Publication Requirements
Monthly and Annual declarations are compulsory:
- A monthly declaration of tax paid in cash or deducted at source. Before the 21 of every month, each company must make a monthly declaration, series GN50, if they belong to the Real regime;
- An annual declaration of company profits (IBS: tax on company profits). Before 1 April of every year, each company must make an annual declaration of its profits, series E N6, to the tax office it comes under.

Large companies have to pay provisional tax 3 times a year: 20 March, 20 June, 20 November.

Professional Accountancy Bodies
CRCECC , Governing Council of Chartered Accountants
Certification and Auditing
The monitoring and the certification of the legality of accounts were made compulsory by a decree of 1993. The 1998 Finance Act introduced the obligation for public industrial and commercial establishments (EPICs) to have their accounts certified by an auditor. This takes place every year. On the other hand, resorting to an external auditor is not a legal obligation. However, companies have to set up an internal audit organization (Act 88-10).

You can consult an external auditor :KPMG Algeria ; Deloitte Algeria ;PricewaterhouseCoopers
Accounting News
Algerian accounting news

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Tax Rates

Consumption Taxes

Nature of the Tax
Value added tax (TVA)
Tax Rate
17%
Reduced Tax Rate
7% (special reduced rate) in general on essential foodstuffs and medicines need first.
Other Consumption Taxes
A consumption tax (taxe intérieure de consommation) is levied on several products : on beer, tobacco and matches (with a tax rate defined per hl and kg) ; on salmon, coffee, some fruits, alcohol, all-terrain vehicles, etc. (with a rate that varies between 10 and 100%). For further information, consult the pages of the fiscal administration's website on the area of application of the different consumption taxes (in French only).

Learn more about Service Providers in Algeria on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
25% for non-tourism companies involved in the services sector.
19% for tourism and production sector companies.
Tax Rate For Foreign Companies
Foreign companies are taxed on the profits they make in Algeria.
Capital Gains Taxation
Long term capital gains are taxed at 35% in Algeria.
Main Allowable Deductions and Tax Credits
Expenses are deductible for depreciation, amortization, reserves, rents for premises and equipment, wages, etc. Do not hesitate to consult an National Society of Algerian chartered accountant to know more about it.
Other Corporate Taxes
See the list of taxes on the Algerian tax website.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Algeria Middle East & North Africa United States Germany
Number of Payments of Taxes per Year 29.0 19.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 451.0 184.0 175.0 207.0
Total Share of Taxes (% of Profit) 32.3 32.3 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Global income tax (IRG) Progressive rate up to 35%
Up to DZD 120,000 DZD 0%
From DZD 120,001 to 360,000 20%
From DZD 360,001 to 1,440,000 30%
Over DZD 1,440,000 35%
Allowable Deductions and Tax Credits
To know the different deductions allowed to people working in Algeria, you should contact the Tax Office.
Special Expatriate Tax Regime
The expatriate tax regime is similar to that of nationals.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
ANDI website
MFE website
Withholding Taxes
Dividends: 15%, Interest: 10%, Royalties: 24% (withholding taxes).

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Sources of Fiscal Information

Tax Authorities
Directorate-General of Taxes
Other Domestic Resources
Big Companies Directorate (DGE)

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Learn more about Taxes and Accounting in Algeria on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
Patents, trademarks and copyright are protected in Algeria. For patents, requests for information should be made to the Algerian Institute of Standardization and Industrial Property (INAPI). Concerning trademarks, the request should be made to the National Trade Register Center (CNCR).
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Edict n° 03-07 on patents 19 July 2003
20 years Patent Cooperation Treaty (PCT)
Trademark
 
Edict n° 03-06 on trademarks 19 July 2003
10 years Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
Industrial Designs.
10 years, renewable for consecutive 10 year periods  
Copyright
 
Berne convention For the Protection of Literary and Artistic Works
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty

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Legal Framework

Independence of Justice
Judicial power is not independent in Algeria. Judges are often subjected to disciplinary measures or other repressive measures on the part of the government.
Equal Treatment of Nationals and Foreigners
Yes
The Language of Justice
Arabic
Recourse to an Interpreter
For a court case it is particularly recommended that you resort to the help of an interpreter/translator, as all the exchanges take place in Arabic (the official language). However, most magistrates and lawyers speak French, as well as Arabic.
Sources of the Law and Legal Similarities
Algerian law has various sources: the Constitution, laws voted by Parliament, ministerial decrees and orders, international conventions and treaties ratified by Algeria.
There are legal similarities with all the countries whose law has come from Roman law, and only partly from Muslim law.
Checking National Laws Online
Official portal for Algerian Law
Algerian Official Journal

Learn more about Lawyers and Legal in Algeria on Globaltrade.net, the Directory for International Trade Service Providers.

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Standards

National Standards Organizations
Algerian Institute of Standardization (IANOR) (in French)
Integration in the International Standards Network
The IANOR is a member of the International Standards Organisation (ISO).
Classification of Standards
The national conformity mark is entitled TEDJ. The NF and CE marks are accepted in Algeria and are established as references.
Online Consultation of Standards
Algerian Institute of Standardization
Certification Organizations
Algerac
List of certification bodies in Algeria from the Algerian Ministry of Industry.

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Business Practices

General Information
Kwintessential information sheets on culture and customs in Algeria.
Opening Hours and Days
In Algeria, working hours are 8am to noon and 1pm to 5pm, from Saturday to Wednesday. Thursday and Friday are the rest days.
Administrations are open on Thursday morning and the banks close at 3pm.
During Ramadan, the pace is slowed and hours are modified (9am to 3pm in general).
 

Public Holidays

New Year's Day 1 January
Eid al-Fitr, end of Ramadan
Eid al-Adha, feast of the sacrifice, Ashoura, Muslim New Year, Mouloud, birth of the Prophet
Religious feasts do not follow the Gregorian calendar, but rather the Hegirian calendar (based on the lunar cycles). As dates are therefore variable from one year to the next, use the following page of the IMCE (Institute of Celestial Mechanics and Calculation of Ephemerides) website, for an exact calculation of the religious feasts.
Labor Day 1 May
Coup d'Etat against Ben Bella 19 June
National Day 5 July
Anniversary of the Revolution 1 November
 
 

Periods When Companies Usually Close

Aïd El Fitr The two days following the end of the month of Ramadan.
Aïd El Adha 2 days, about two months after Aïd El Fitr
Ramadan It is difficult to contact Algerian companies in August and during Ramadan.
 

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Last Updates: November 2014