Income Tax Brackets in Algeria for 2024

The Algerian tax system is a declarative system which means that taxpayers are responsible for declaring and paying taxes to which they are subject. There are several taxes, both direct and indirect, including income tax, a single flat tax, tax on business activity, property tax and value-added tax. The taxation system in Algeria is administered by the official tax body, the Direction Générale des Impôts (DGI).

In 2022, the Algerian Government introduced new tax measures through the Finance Act 2022. New provisions addressed foreign non-resident companies, corporate income tax, tax on professional activity (TAP) and many more.

The Finance Bill 2024 provides guidance and support in the form of income tax tables for individuals and businesses. Taxpayers must familiarize themselves with these tax tables and the corresponding tax brackets and tax rates, for effective tax planning and to remain compliant with Algerian tax laws.

Here you will learn more about:

• headline tax rates
• personal income tax (PIT) brackets
• corporate income tax (CIT) rates
• capital gains tax (CGT) rates
• withholding tax rates for residents and non-residents
• value-added tax (VAT) rates

Headline Tax Rates in Algeria

Personal Income Tax (PIT) Brackets in Algeria for 2024

Individual income tax rates are applied on a progressive scale. An individual may be subject to tax on their worldwide income if they are regarded as Algerian tax residents. If, however, they are not regarded as tax residents, they will be taxed on income sourced in Algeria only.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Algeria for 2024

Corporate entities are taxed according to two tax regimes:

• the standard tax regime - applies to all tax resident companies and includes corporate income tax (CIT), tax on professional activity (TPA) and local solidarity tax (LST)
• withholding tax (WHT) regime

Where a corporation carries out mixed activities involving the application of multiple CIT rates, the taxable profits under each rate are determined according to the turnover declared for each activity.

Non-resident companies are liable for CIT via the Withholding Tax (WHT) regime. However, in the presence of a Double Tax Treaty (DTT), the non-resident company will be taxed in Algeria if it has a permanent establishment.

Corporate Income Tax Due Dates

Capital Gains Tax (CGT) in Algeria

Withholding Tax Rates for Residents and Non-Residents in Algeria

Withholding tax (WHT) in Algeria covers corporate income tax (CIT), tax on professional activity (TPA) and value-added tax (VAT). However, as Algeria is signatory to several double taxation treaties (DTTs), a taxpayer may benefit from the provisions of these DTTs. Consequently, the taxes above may be reduced or removed by a DTT in place.

Value-Added Tax Rate in Algeria