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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:

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  • 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

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