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We have a team of professionals to help you with all your business needs. So, that you can focus on business expansion in Algeria.

Please feel free to email us on [email protected]

Algeria

Why Algeria?

North African nation Algeria is home to a wide range of cultural traditions. It provides a variety of business opportunities across numerous sectors, including energy, agriculture, and manufacturing, and is the largest country in Africa. Algeria is a desirable location for foreign investors due to its advantageous location at the intersection of Africa, Europe, and the Middle East, which acts as a gateway to the African market.

Algeria is the largest producer of natural gas in Africa and the second-largest non-regional supplier of natural gas to Europe.

Algeria has the fourth-largest GDP on the African continent (144 billion USD in 2020) and the highest GDP per capita in North Africa. The country has a territory of 2.4 million km2, a dynamic population (+900,000 inhabitants/year, 44 million inhabitants on 1 January 2020), and the highest GDP per capita in North Africa.

Advantages

With a population of over 46,016,572, Algeria is the largest country in Africa and the tenth largest in the world. The economy of the nation is diverse, with a focus on the oil and gas industry, but it also includes the agricultural, manufacturing, and service sectors. The following are some benefits of conducting business in Algeria:

Government incentives:

To entice foreign investment, the Algerian government provides a variety of incentives, such as tax breaks, exemptions from customs duties, and financial support for R&D.

Large domestic market:

The domestic market in Algeria, which has a population of over 46,016,572 , is sizable and expanding. With a median age of just 29, the nation’s young population offers opportunities for companies that provide goods and services for consumers.

Natural resources:

Natural resources are abundant in Algeria, especially oil and gas. The nation has sizable reserves of oil, iron ore, and phosphates and is the third-largest natural gas producer in the world.

Strategic location:

Algeria is strategically located, making it a desirable hub for companies looking to expand into North Africa and beyond. The nation has access to important trade routes and shipping lanes due to its location between Europe, Africa, and the Middle East.

Strong infrastructure:

An advanced infrastructure, including cutting-edge ports, highways, and airports, exists in Algeria. The nation has plans to expand its rail and road networks and is also making significant investments in renewable energy.

Simple Tax Regime

Algeria’s tax regime is the body of laws that control the collection and distribution of taxes. Direct and indirect taxes, imposed by both the federal and local governments, make up the foundation of the tax system in Algeria.

Types of taxes in Algeria

1.Corporate Tax :

Corporate entities are taxed on activities performed in Algeria via the following two regimes:

The standard rate of Corporate Income Tax (CIT):

  • 19% for manufacturing activities.
  • 23% for building activities, public works, and hydraulics, as well as tourist and thermal activities, excluding travel agencies.
  • 26% for all other activities not mentioned above.

Withholding tax (WHT) regime :

Non-resident entities performing service contracts in Algeria are subject to the WHT regime.

The 30% WHT, which encompasses the CIT, the TAP, and the VAT, is required to be levied on services only.

2.Individual Tax :

Individuals may be subject to taxation in Algeria:

  • On worldwide income if they are considered as Algerian tax residents, irrespective of source or recharge arrangements.
  • On income sourced in Algeria (received in consideration of a professional activity performed in Algeria) if they are not considered as Algerian tax resident.

Personal income taxation is applied with progressive scale rates (marginal rate 35%).

Annual taxable income (DZD):

Less than 240,000 – 0%

240,001 to 480,000 – 23%

480,001 to 960,000 – 27%

960,001 to 1,920,000 – 30%

1,920,001 to 3,840,000 – 33%

More than 3,840,000 – 35%

3.Value Added Tax (VAT) :

In Algeria, Value Added Tax (VAT) is imposed on the provision of goods or services. It covers all of Algeria’s economic activities. 19% is the standard VAT rate. For a number of basic items listed by law, the reduced rate is 9%.

VAT payments and returns are due on the twentieth day of each month.

4.Property Tax :

Property taxes, also referred to as “taxe foncière” in Algeria, are levied against real estate. This tax is assessed against the property owner and is determined using the estimated value of the asset.

Algeria a country officially called as the People’s Democratic Republic of Algeria, is a State of North Africa which is a part of the Maghreb. Its Capital city is Algiers and the languages spoken are here Arabic and Tamazight.

Author: Chandrawat & Partners

Topic: Doing Business in Algeria

Download our comprehensive guide on – Doing Business in Algeria

Why Algeria?

Contact Us

Get in touch with the right people to get the right help in setting up your business in Algeria. 

Contact us at: [email protected]

Algeria

We have a team of professionals to help you with all your business needs. So, that you can focus on business expansion in Algeria.

Please feel free to email us on

 [email protected]

WHY ALGERIA ?

North African nation Algeria is home to a wide range of cultural traditions. It provides a variety of business opportunities across numerous sectors, including energy, agriculture, and manufacturing, and is the largest country in Africa. Algeria is a desirable location for foreign investors due to its advantageous location at the intersection of Africa, Europe, and the Middle East, which acts as a gateway to the African market.

Algeria is the largest producer of natural gas in Africa and the second-largest non-regional supplier of natural gas to Europe.

Algeria has the fourth-largest GDP on the African continent (144 billion USD in 2020) and the highest GDP per capita in North Africa. The country has a territory of 2.4 million km2, a dynamic population (+900,000 inhabitants/year, 44 million inhabitants on 1 January 2020), and the highest GDP per capita in North Africa.

ADVANTAGES

With a population of over 46,016,572, Algeria is the largest country in Africa and the tenth largest in the world. The economy of the nation is diverse, with a focus on the oil and gas industry, but it also includes the agricultural, manufacturing, and service sectors. The following are some benefits of conducting business in Algeria:

Government incentives:

To entice foreign investment, the Algerian government provides a variety of incentives, such as tax breaks, exemptions from customs duties, and financial support for R&D.

Large domestic market:

The domestic market in Algeria, which has a population of over 46,016,572 , is sizable and expanding. With a median age of just 29, the nation’s young population offers opportunities for companies that provide goods and services for consumers.

Natural resources:

Natural resources are abundant in Algeria, especially oil and gas. The nation has sizable reserves of oil, iron ore, and phosphates and is the third-largest natural gas producer in the world.

Strategic location:

Algeria is strategically located, making it a desirable hub for companies looking to expand into North Africa and beyond. The nation has access to important trade routes and shipping lanes due to its location between Europe, Africa, and the Middle East.

Strong infrastructure:

An advanced infrastructure, including cutting-edge ports, highways, and airports, exists in Algeria. The nation has plans to expand its rail and road networks and is also making significant investments in renewable energy.

Add Your Heading Text Here

SIMPLE TAX REGIME

Algeria’s tax regime is the body of laws that control the collection and distribution of taxes. Direct and indirect taxes, imposed by both the federal and local governments, make up the foundation of the tax system in Algeria.

Add Your Heading Text Here

Types of taxes in Algeria

1.Corporate Tax :

Corporate entities are taxed on activities performed in Algeria via the following two regimes:

The standard rate of Corporate Income Tax (CIT):

  • 19% for manufacturing activities.
  • 23% for building activities, public works, and hydraulics, as well as tourist and thermal activities, excluding travel agencies.
  • 26% for all other activities not mentioned above.

Withholding tax (WHT) regime :

Non-resident entities performing service contracts in Algeria are subject to the WHT regime.

The 30% WHT, which encompasses the CIT, the TAP, and the VAT, is required to be levied on services only.

2.Individual Tax :

Individuals may be subject to taxation in Algeria:

  • On worldwide income if they are considered as Algerian tax residents, irrespective of source or recharge arrangements.
  • On income sourced in Algeria (received in consideration of a professional activity performed in Algeria) if they are not considered as Algerian tax resident.

Personal income taxation is applied with progressive scale rates (marginal rate 35%).

Annual taxable income (DZD):

Less than 240,000 – 0%

240,001 to 480,000 – 23%

480,001 to 960,000 – 27%

960,001 to 1,920,000 – 30%

1,920,001 to 3,840,000 – 33%

More than 3,840,000 – 35%

3.Value Added Tax (VAT) :

In Algeria, Value Added Tax (VAT) is imposed on the provision of goods or services. It covers all of Algeria’s economic activities. 19% is the standard VAT rate. For a number of basic items listed by law, the reduced rate is 9%.

VAT payments and returns are due on the twentieth day of each month.

4.Property Tax :

Property taxes, also referred to as “taxe foncière” in Algeria, are levied against real estate. This tax is assessed against the property owner and is determined using the estimated value of the asset.

ALBANIA COMPANIES

General Partnerships

A business is a general partnership if it is incorporated as such, operates under a common name, and each member has limitless responsibility to debtors.

Limited Partnerships

When the responsibility of at least one partner
(the limited partner) is restricted to the value 
of his stake while the liability of the other 
partners is unrestricted, the partnership is 
deemed to be a limited partnership. In a 
general partnership, general partners have 
the same rights as other partners.

Limited Liability Companies

A limited liability company is a business entity 
established by natural or legal people, each of 
whose liability for the company’s 
responsibilities is capped at their investment 
in the company’s subscribed capital. 
According to how much they contribute, each 
member receives a proportionate part of the 
business. The participants receive a 
proportional share of the subscribed money. 
Shares of limited liability companies may not 
be made available to the general population. A 
Limited Liability Company’s base stock is set at 
ALL 100.

Joint Stock Companies

Tha is usually created for big businesses that sell shares 
to the public to meet their financial requirements. A Sha is 
a business in which the founders (natural or legal people) 
contribute to the basic capital in the form of shares.

These founders are not responsible for the company’s obligations and only individually suffer 
losses up to the amount of their capital subscription. A Meeting of the Founding Shareholders, where the 
capital share membership and statute approval take place, should decide whether to establish a Sha. After 
being registered in the Commercial Register, the freshly formed business becomes operational

A Sha with a private sale cannot have a base capital of less than ALL 3.500.000. A Sha with a public sale 
cannot have a base capital of less than ALL 10,000,000. Before registration, at least one-fourth of the 
nominal value of the shares for donations in cash must be made up. Depending on the Board of Directors’ 
judgement, the leftover sum is paid in one or more payments. The Sha is the sole organization authorized 
by Albanian legislation to issue notes.

Algeria a country officially called as the People’s Democratic Republic of Algeria, is a State of North Africa which is a part of the Maghreb. Its Capital city is Algiers and the languages spoken are here Arabic and Tamazight.

Author: Chandrawat & Partners

Topic: Doing Business in Algeria

Download our comprehensive guide on – Doing Business in Algeria.

Contact Us

Get in touch with the right people to get the right help in setting up your business in Algeria . 

Contact us at: [email protected]

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.

About Us

Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.