Algeria: Tax provisions in Finance Act for 2016

Algeria: Tax provisions in Finance Act for 2016

Among the tax provisions included in law no. 15-18 (30 December 2015) establishing the Financial Act for 2016 are the following items.

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  • Reduction of the rule for profits to be reinvested, corresponding to the tax benefits available under the framework for a supporting investment
  • Increase of the property tax for undeveloped business land
  • Increase of the tax exemption available for natural gas vehicles
  • Definition of the characteristics of “lifting vehicles” subject to taxes on transactions involving vehicles and lifting vehicles
  • Rate adjustment for value added tax (VAT) purposes, with the VAT rate increased to 17% (up from 7%) for certain products
  • VAT rate reduction for raw materials intended for the manufacture of “concentrated vitamins mineral
  • Adjustment to the petroleum products tax
  • Changes to VAT rules for exempt purchases 
  • Change of the rules for royalties for the use of hydraulic public domain for business purposes (mineral water and source water)
  • Introduction of a preferential tax and customs regime for emerging industrial sectors
  • Application of a 15% customs duty for imported computer hardware

 

Read a January 2016 report [PDF 333 KB] prepared by the KPMG member firm in Algeria

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