KPMG in Algeria summarizes recent developments of note to domestic and foreign investors in Algeria. These developments include tax rate changes, increased penalties, duties and sanctions, and new exemptions, reductions and advantages.
Current IBS rates for specific industries are as follows:
The TAP rate is changed to:
The existing tariff rate of 10,000 Algerian dinar (DZD) is replaced with a 0.3 percent tax rate on imported goods and merchandise, provided the tax value is DZD 20,000 or more.
The Algerian 2015 Financial Law increased duties, tax penalties and sanctions as follows.
Opening or renewing a liaison office – The Minister of Commerce has modified the terms and conditions for the opening and functioning of liaison offices. The Ministry also communicated that the duty applicable on the opening of a liaison office is now DZD 1.5 million, up from DZD 100,000. The duty is also paid on renewing the authorization.
Work permits – The fee for issuing work permits for foreign workers rose to DZD 10,000 (up from DZD 5,000 DA), and to DZD 1,000 (from DZD 500) for foreign spouses of Algerian citizens. These amounts are increased by 50 percent where the documents are being renewed, duplicated, or reissued because the original permit was stolen or destroyed.
Foreign employees – Penalties for infringements related to foreign employees are increased as follows:
Other breaches of employment rules – For non-compliance with the legal age of employment and for payment of remuneration lower than the guaranteed minimum wage, fines have been multiplied by 10. Current fines are range from:
Failing to register workers for social security – Such failure now attracts penalties ranging from DZD 100,000 to 200 000 and 2 – 6 months’ imprisonment. For repeat offenders, the penalty ranges from DZD 200,000 to 500,000 and 2 – 24 months’ imprisonment.
Newly introduced tax incentives include: