INCENTIVE REGIMES

Incentive Regimes

Investments may benefit, at the request of the investor, from one of the incentive regimes, mentioned below:

Incentive regime for priority sectors, called the “sectors regime”;
Incentive regime for zones for which the State grants a particular interest, called the “zones regime”;
Incentive regime for investments of a structuring nature, called the “structuring investments regime”.

Investments realized in the following sectors of activity are eligible for the “sectors regime”

Mines and quarries ;
Agriculture, aquaculture and fishing;
Industry, food industry, pharmaceutical and petrochemical industry;
Services and tourism ;
New and renewable energies;
Knowledge economy and information and communication technologies (ICT).

Advantages granted for the sectors regime

in addition to the fiscal, para-fiscal and customs incentives provided under common law, from the following advantages:

During the realization period:

Exemption from customs duties on imported goods directly involved into the investment implementation;
Exemption from VAT on goods and services imported or acquired locally, directly involved into the investment implementation;
Exemption from transfer tax, against payment, and land registration tax, on all property acquisitions made within the framework of the concerned investment;
Exemption from required registration fees on acts of corporation and capital increases;
Exemption from registration fees, land advertising tax as well as the State owned property remuneration on built and non built properties concessions, granted for investment projects implementation;
Exemption from land tax on real estate properties, within the framework of the investment, for a period of ten (10) years, from the acquisition date.

During the Operation period: for a period from three (3) to five (5) years, from the date of starting operation, of:

exemption from Tax on companies profits (IBS);
Exemption from the tax on the turnover (TAP);

The Sectors Regime

The Zones Regime

Investments eligible for the zones regime

Investments realized in these localities are eligible to the “zones regime”:

localities in the Highlands, the South and the Great South;
localities whose development requires special support from the State;
localities with natural resource potential to be developed.

The advantages granted to the zones regime

Investments eligible for the zones regime, whose activities are not excluded from the advantages, may benefit, in addition to the fiscal, para-fiscal and customs incentives provided under common law, from the following advantages:

During the realization period:

Exemption from customs duties on imported goods directly involved into the investment implementation;
Exemption from VAT on goods and services imported or acquired locally, directly involved into the investment implementation;
Exemption from transfer tax, against payment, and land registration tax, on all property acquisitions made within the framework of the concerned investment;
Exemption from required registration fees on acts of corporation and capital increases;
Exemption from registration fees, land advertising tax as well as the State owned property remuneration on built and non built properties concessions, granted for investment projects implementation;
Exemption from land tax on real estate properties, within the framework of the investment, for a period of ten (10) years, from the acquisition date.

During the Operation period: for a period from three (3) to five (5) years, from the date of starting operation, of:

exemption from Tax on companies profits (IBS);
Exemption from the tax on the turnover (TAP);

Investments eligible for the structuring investments regime

Investments with high potential for creating wealth and jobs, likely to increase the attractiveness of the territory and create a knock-on effect on economic activity for sustainable development, are eligible for the “structuring investments regime”.

The advanteges granted for the structuring investments regime

Investments eligible for the “structuring investments regime” may benefit, in addition to the fiscal, para-fiscal and customs incentives provided under common law, from:

During the realization period:

Exemption from customs duties on imported goods directly involved into the investment implementation;
Exemption from VAT on goods and services imported or acquired locally, directly involved into the investment implementation;
Exemption from transfer tax, against payment, and land registration tax, on all property acquisitions made within the framework of the concerned investment;
Exemption from required registration fees on acts of corporation and capital increases;
Exemption from registration fees, land advertising tax as well as the State owned property remuneration on built and non built properties concessions, granted for investment projects implementation;
Exemption from land tax on real estate properties, within the framework of the investment, for a period of ten (10) years, from the acquisition date.

The realization period advantages may be transferred to the co-contractors of the beneficiary investor responsible for implementing the investment, on behalf of the latter.

During the operation period: for a period ranging from five (5) to ten (10) years, from the date of starting operation, of:

Exemption from companies profits tax (IBS);
Exemption from the tax on the turnover (TAP).

Structuring investments can benefit from the support of the State by taking charge, partially or totally, of infrastructure works necessary for their realization, on the basis of an agreement established between the investor and the Agency acting on behalf of the State. The agreement is concluded after its approval by the Government.

The Structuring Investments Regime

Agence Algérienne de Promotion de l’Investissement

L’Agence Algérienne de Promotion de l’Investissement –AAPI– est un établissement public à caractère administratif, dotée de la personnalité morale et de l’autonomie financière.