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Algeria

Taxes

If you want to do business in Algeria, this article will educate you on the tax laws for a LLC(SARL) which is the most common legal entity in Algeria.

The country has a territorial taxation system. Therefore income accrued offshore, from our research and this is not personal advice, is not taxable. Local-source income is taxed at a CIT rate of 26%. This ranks Algeria as 124th overall in terms of corporate tax rate worldwide.

The value added tax (VAT) rate in DZ is 17.00%, that ranks Algeria as 127th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 26.00% to the equivalent of a social security fund and an employee will contribute 9.00%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 110 hours. Contributing to this is the number of yearly labor tax payments, which is 1 in DZ.

Thin cap rules aren't in effect. This refers to any sort of restrictions on companies' debt-to-asset ratios. Dividends received from a resident company are not considered taxable income. Dividends are payments of a company profit, voted on by the board, to shareholders.Dividends can be one of the following stock, cash, or property. Capital Gains are included in the taxable income. Certain exemptions apply for gains from assets held during a certain period. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. This should be interpreted that usually the relevant tax authorities expects legal entities to automatically withhold 10% of payments offshore on interests. The dividends withholding tax rate is 15%. This should be interpreted that usually the tax authorities expects to withhold 15% of dividend payments to non-residents. The royalties witholding tax rate is 24%. This means that the tax authorities expects LLC(SARL)'s to withhold 24% of money remitted abroad on royalties.

There is a tax on net wealth in Algeria. There are inheritance, transfer and real property taxes in DZ. There are no widely used R&D intitiatives that provide tax incentives in this country.

The above is not tax or legal advice for your particular circumstances. We are able to refer you to an expert in Algeria who can give you an answer. Ready to get started? Click the free consultation button above.

Country details

Algeria
DZD
Algiers
Africa
Arabic (Algeria)
34,586,184

Tax treaties

Country Type Date Signed
Poland DTC  2000-01-31
United Kingdom DTC  2015-02-18
Tunisia DTC  1990-07-23
Ukraine DTC  2002-12-14
Canada DTC  1999-02-28
Bahrain DTC  2000-06-11
Indonesia DTC  1995-04-28
United Arab Emirates DTC  2001-04-24
Mauritania DTC  1990-07-23
France DTC  1999-10-17
Korea, Republic of DTC  2001-11-24
Switzerland DTC  2006-06-03
Austria DTC  2003-06-17
Romania DTC  1994-06-28
Morocco DTC  1990-07-23
Italy DTC  1991-02-03
China DTC  2006-11-06
Spain DTC  2002-10-07
Russian Federation DTC  2006-03-10
Portugal DTC  2003-12-02
South Africa DTC  1998-04-28
Germany DTC  2007-11-12
Turkey DTC  1994-08-02
Belgium DTC  1991-12-15
Lebanon DTC  2002-03-26

Tax treaties Map

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