In conjunction with Mazars, this chapter explores the taxation system and Algeria’s efforts to build an investor-friendly environment. It also contains a viewpoint with Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria.…
Viewpoint:Samir Hadj Ali Foreign business partners frequently ask whether representative offices will continue to be allowed in Algeria. Typically, this is asked when they plan to set up such an entity or when the time comes to renew its licence, which is valid for only two years. Representative offices, generally addressed as liaison offices, have an historical purpose that no longer applies…
Reaching a population of 42.3m by the end of 2018, Algeria is the second-largest country in North Africa after Egypt. The country is one of Africa’s most important producers of hydrocarbons and enjoys large reserves of shale oil and gas not commercially exploited. Although Algeria enjoys a relatively closed economy, it holds close trading links with its Mediterranean neighbours to the north, and
The Algerian tax system is structured and governed among five key tax codes: • The code of direct taxes and related taxes; • The code of taxes on sales, which is mainly dedicated to value-added tax (VAT); • The code of indirect taxes; • The code of registration duties; and • The code of stamp duties. Another code, the fiscal procedures code, governs the relation between the tax…
At $156bn in 2016, Algeria’s GDP is the largest in the Maghreb region and the second largest in North Africa, and with a per capita GDP of $3843, it also ranks as the wealthiest in North Africa.
The key message for manufacturing companies that are still encouraged by incentives is that the 2016 Finance Act has not significantly changed the Direct Taxes Code or the Code of Taxes on Sales despite the continuing fall of oil prices. The Supplementary Finance Law of 2015, published in July of that year, had already granted reduced rates of corporate income tax for manufacturing activities,…
In conjunction with Mazars, OBG explores the taxation system, examining Algeria’s investor-friendly environment. The chapter includes a viewpoint from Samir Hadj Ali, Chartered Accountant and Managing Partner, Mazars Algeria, on corporate income tax rates.…
Viewpoint:Samir Hadj Ali In the current context – with fiscal resources having dropped significantly as a result of the substantial recent decline in hydrocarbons tax revenues – it seems that additional government income will not be raised at the expense of the profitability of companies via an increase in corporate income tax. The solutions for enhancing tax revenues seem to be predominantly…
Hydrocarbons represent 31% of GDP and more than 60% of government revenue. However, low oil prices have had a dramatic impact on producers around the world. Algeria has been unable to shield itself from that trend, which has had significant implications for the domestic economy. The drop in oil prices, as well as rises in government spending in recent years, has led to the emergence of large fisca
Although 2015 will be recalled as a sensitive year for the Algerian economy, given the ongoing impact that the global drop in oil prices has had on the state budget, no significant increase in taxes has occurred and the Algerian tax system remains oriented around incentives for boosting manufacturing activity. Primary Tax Codes Structured around five key tax codes, the Algerian tax system is governed…
