This is an annual flat tax on the global income of individuals. It applies to the taxpayer’s net global income:

Taxable Persons:

• Natural persons
• Partners in partnerships
• Members of professional civil partnerships
• Members of unlimited and jointly responsible joint ventures
• Members of civil companies subject to the same regime as general partnerships. (Art 7 CIDTA)
• A prepayment of Income Tax (IRG) follows a progressive scale and is as follows: (For which period, to be specified)
• 0% for turnover or professional income not exceeding 240,000 DA
• 23% for turnover or professional income ranging from 240,000 DA to 480,000 DA
• 27% for turnover or professional income ranging from not 480,001DA to 960,000 DA
• 30% for turnover or professional income ranging from not 960,001 DA to 1,920,000 DA.
• 33% for turnover or professional income ranging from not 1,920,001 DA to 3,840,000 DA
• 35% for turnover or professional income exceeding 3,840,000 DA

Note: A specific taxation regime called the “simplified regime for non-commercial professions” is established for taxpayers earning income in the category of non-commercial profits (BNC). (Art.31 bis of the CIDTA and Art.12 LF 2022) Taxpayers engaged in non-commercial activities may opt for the simplified regime for non-commercial professions (IRG/BNC) or for the flat-rate tax regime (IFU). (Art. 282 ter of the CIDTA and Art.7 LFC 2022)

Individuals engaged in industrial, commercial, non-commercial, artisanal activities, as well as art and traditional craft cooperatives, whose annual turnover does not exceed eight million dinars (8,000,000 DA), are subject to the single flat tax regime, except for those who have opted for the actual profit taxation regime or the simplified regime for non-commercial professions (BNC). (Art.282 ter CIDTA and Art. 7 LFC 2022).

The single flat tax regime remains applicable for establishing the tax due for the first year in which the turnover limit prescribed for this regime is exceeded. This taxation is established taking into account these exceedances. This regime also remains applicable for the following year.

Applicable Rates:

• 5% for production and sale of goods activities;
• 12% for other activities.
• 5% withholding tax at source for IFU, tax-free, for operations of distribution of goods and services via digital platforms or through direct sales in networks.
• 5% for activities of collecting waste paper and household waste as well as other recyclable waste carried out by individuals; (Art.32 LF 2014)
• 12% for annual professional income earned by taxpayers in the category of non-commercial professions (BNC).
• 5% for activities carried out under the status of self-entrepreneur. (Art.16 LF 2023/ Art. 282sexies of CIDTA)

As part of fiscal measures to support investment and the national economy, the General Directorate of Taxes has cited, among others, the abolition of the tax on business activity (TAP), according to the 2024 Finance Act.

Property tax is an annual tax imposed on all built and unbuilt properties, according to a calculation scale, regardless of their legal status, located in the national territory, except for those expressly exempted. This tax is paid to the tax office of the property’s location. (Art.13 LF 2023).

This tax applies to industrial, commercial, or artisanal activities, banking and insurance, as well as liberal professions exercised by producers, wholesalers, and service providers.

VAT has two (02) rates:

• A normal rate of 19% applies to products, goods, commodities, objects, and operations not subject to the reduced rate;
• A reduced rate of 9% applies to operations and products defined in Article 23 of the VAT code.

• Capital companies (SPA, SARL, EURL, Partnerships limited by shares, etc;
• Single-member limited liability companies;
• Partnerships and partnerships as defined by the commercial code that have opted for CIT taxation;
• Civil companies that have opted for CIT taxation.

Companies excluded from the scope of CIT: (Art.136 of CIDTA)

• Partnerships and partnerships as defined by the commercial code that have not opted for CIT taxation.
• Civil companies that are not established in the form of joint stock companies (SPA) and have not opted for CIT taxation.
• Collective Investment Schemes (CIS).
• Groups whose creation, organization, and operation are provided for by the provisions of the commercial code. (Art 136 bis of CIDTA/ 33 LF 2022).
• Investment Support Fund for Employment (FSIE).

Tax rates: The corporate income tax rate is set at: (Art 150 of CIDTA)

• 19% for the production of goods activities;
• 23% for construction, public works, and hydraulic activities as well as tourism and thermal activities excluding travel agencies;
• 26% for other activities.

In the event of the simultaneous exercise of multiple activities subject to different rates, the taxable profits for each rate are determined based on the proportion of declared or taxed turnover for each activity.

• 10%, reduced rate for reinvested profits, according to the conditions set out in Article 142 bis of the CIDTA. This rate applies to results for the fiscal years 2022 and subsequent. (Art 150 of CIDTA/Art.46 LF 2022)
• 10%, additional tax on corporate profits applicable to tobacco manufacturing companies.