Algeria Adopts Additional Finance Act 2015

by Lorys Charalambous, Tax-News.com, Cyprus

27 July 2015

Algeria's Government has adopted the Additional Finance Act (LFC) 2015, which contains several tax reform measures aimed at encouraging enterprise, and domestic manufacturing in particular.

The original Finance Act 2015 set corporate income tax at 23 percent. The LFC increases the headline rate to 26 percent for most areas of activity, but reduces the rate for manufacturing to 19 percent. For tourism and BTPH construction activities (building, civil works and hydraulic), the rate remains at 23 percent. The tax on professional activities (TAP), currently levied at two percent of turnover, is reduced to one percent for manufacturing and 1.5 percent for construction.

Measures aimed at boosting investment include an exemption from VAT for loans to buy real estate and a reduction in the notarial fees paid for business registrations and certain other legal processes.

The President, Abdelaziz Bouteflika, also emphasized the need to improve compliance and tackle evasion.

TAGS: compliance | Finance | tax | investment | business | Algeria | fees | manufacturing | tax reform | construction

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