Algeria taxes residents on worldwide income and non-residents on Algeria-source income only. Algeria has no CFC rules. Algeria operates a self-assessment system, with the Direction Generale des Impots conducting post-filing review.
The Algerian tax year is the calendar year.
26% standard rate.
Progressive up to 35%.
19% standard rate.
An individual has Algerian tax domicile if they own, hold usufruct over, or rent a dwelling for at least one year (even via employer arrangement), or if their principal place of stay or center of principal interests is in Algeria - the duration criterion means presence exceeding 183 days over one year triggers residency, subjecting worldwide income (Algeria-source and foreign) to Algerian tax, regardless of nationality. Absent a treaty, non-resident entities are taxable in Algeria on Algeria-source income wherever the work is physically carried out, provided the income is rendered or used in Algeria.
A non-Algerian entity has an Algeria permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Algeria on the entity's behalf, following the OECD Model Treaty definition as applied under Algerian domestic law and any applicable tax treaty.
Algeria has no CFC rules.
Algeria has no fixed debt-to-equity ratio but restricts shareholder-loan interest deductibility (a BEPS Action 4-inspired measure): interest paid to shareholders is deductible from the CIT base only up to the average effective rate published by the Bank of Algeria, and only where share capital is fully paid up and the funds provided to the company do not exceed 50% of capital.
Algeria does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Algeria does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists requiring residents to separately disclose foreign accounts; foreign income is reported through the standard annual tax return.
Algeria does not provide a broad participation exemption for foreign dividends; relief from double taxation is available primarily through Algeria's foreign tax credit system.
Algeria has a foreign tax credit mechanism for foreign tax paid on foreign-source income also taxed in Algeria, capped at the Algerian tax otherwise due on that income.
Algeria maintains approximately 28 double tax treaties, primarily with European and Arab-League partners, including France (signed 1999, effective 2002), the United Kingdom (signed 2015, in force June 2016, effective for withholding taxes from January 2017), Canada, and the UAE (signed 2001, in force 2004).