Share with your friends

Algeria: Tax measures in Finance Law 2020

Algeria: Tax measures in Finance Law 2020

Among the tax-related provisions in the Finance Law 2020 are the following items:


Related content

  • Provisions to restructure the “flat tax” system (impôt forfaitaire unique—IFU)
  • Taxation of certain undistributed amounts within three years
  • Increase in the tax rate on income from occasional intellectual activities (activités occasionnelles à caractère intellectuel)
  • Taxation of income from the distribution of profits that has been subject to corporate income tax
  • Reduction of the rate relating to contracts for the use of computer software
  • Limitation of the deductibility of expenses related to medical promotional activities
  • Exclusion of certain activities from the reduction in respect of the tax on certain professional activities
  • Extension of the scope of value added tax (VAT) to activities carried out by electronic means (online or digital sales)
  • Removal of the VAT liability threshold
  • Introduction of a new VAT rate
  • Introduction of a VAT refund period for “partial taxpayers”
  • Tax and VAT exemptions provided as incentives for startups
  • Extension of the reduced VAT rate for the tourism sector until 2022
  • Reorganization of the bank domiciliation tax
  • Increase in the rate of the solidarity contribution
  • Increase in the additional excise tax on tobacco products

Read a January 2020 report (French) [PDF 860 KB] prepared by the KPMG member firm in Algeria

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal