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Paying Taxes in

Algeria

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Algeria to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Social security contributions 12 76 25.5% gross salaries 28.76
Tax on professional activity 0 jointly 1% turnover 26.52
Corporate income tax 0 jointly 122 19% taxable profit 8.27
Apprenticeship tax and traning tax 0 jointly 2% net salaries 1.80
Tax on interest 0 withheld 10% interest income 0.26 included in other taxes
Tax on built land 0 jointly 3% rental value of land 0.12
Drainage tax 0 jointly DZD 10,000 fixed fee 0.05
Tax on unbuilt land 1 7% rental value of land 0.03
Vehicle tax 1 DZD 1,000 fixed fee 0.01
Stamp duty 0 jointly DZD 40 to DZD 2500 number of pages in document 0.00 small amount
Employee Labor Tax 0 jointly 9% 0.00 withheld
Value added tax (VAT) 12 67 17% value added 0.00 not included
Fuel tax 1 DZD 1/liter value of fuel 0.00 small amount
Totals: 27 265 65.6
  • Answer
    Profit tax (% of profit) 8.3
    Labor tax and contributions (% of profit) 30.6
    Other taxes (% of profit) 35.5
    Answer Score
    Postfiling index (0-100) 49.3
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process Restricted to international traders and others
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 97.2
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 3.0 97.2
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Wilaya Tax Director, head of the public tax office or head of the local tax office
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office/other
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 120 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.