Import Procedures

Customs clearance in Algeria has two focal points:

1. Custom clearance file including invoice with a bank domiciliation, a copy of company register, a copy of the tax card issued by relevant fiscal authorities: additional documents can be required in case of a specific administrative procedure or a preferential tax regime application
2. Customs clearance procedure

To consult import procedures, click here (in French).

Specific Import Procedures

It is forbidden to import firearms, explosives, drugs, certain pharmaceutical products (around 260 in total), certain categories of simple medical equipment and all types of used equipment. The import of pork products is also banned for religious reasons. Distributors must obtain an authorization from the Ministry of Health to import and sell drugs. Food products entering the country must have at least 80% of their shelf life remaining.
Consult the Algerian Customs website dedicated to these issues for further information.

Distribution channels

Algeria is the 4th largest grocery retail market in Africa, and the second largest in North Africa (Trendtype). Although the distribution market has, for a long time, been the domain of public companies, informal shops now dominate the retail trade sector and Algeria has a fairly well-developed distribution system with mostly wholesale and retail outlets. Despite increasing urbanisation, traditional grocery retailers remain the most popular distribution channel.
Private businesses control the retail trade at 95% (with strong participation of European investments), and grocery stores and small supermarkets are spread out evenly in the country. According to the estimates of Numidis (the retail and distribution arm of Cevital - a major local private sector group), modern retail accounts for only 3% of annual turnover. The modern grocery retail sector is very fragmented. Among international retailers, only the French chain Carrefour is present.
Due to the Covid-19 pandemic, modern grocery retailers have been focusing on developing supermarkets and minimarkets, which are generally located in neighbourhoods with large populations. The pandemic also accelerated the performance of e-commerce (Euromonitor).

Distribution market players

The Algerian retail sector today is highly fragmented, dominated by a multitude of small, privately owned stores and hard-to-monitor informal vendors. The distribution system is shared between public and private companies. State firms sell mainly wholesale imported foodstuffs, pharmaceutical products and industrial materials, although some private companies are also active in these sectors. In terms of retail trade, the majority of distributors are private companies, namely informal shopkeepers in small shops.
Numidis, known in Algeria by the brand name UNO, is a subsidiary of the Algerian group Cevital, the largest private conglomerate in Algeria, with interests in the agri-food sector, retail, industry and services. There are today 23 UNO stores in the country: 5 hypermarkets, 1 supermarket, 16 motorway services, 1 convenience store (Cevital, latest available data). Due to the high volume of independent modern outlets, Numidis holds a relatively small value share of the market (Euromonitor, 2021).
According to the latest data available by the Algerian Register of Commerce, in 2016 there were 1,415 retail markets in the country, 38 Hypermarkets, 1,919 superette and 232 supermarkets.

Retail Sector Organisations

Algerian Ministry of Trade

Consumption Taxes

Nature of the Tax

Value added tax (VAT) (Taxe sur la valeur ajoutée - TVA)

Tax Rate

19%

Reduced Tax Rate

A special reduced rate of 9% applies to: sales of electricity and natural gas for consumption under 250 kWh and 2,500 thermal units per quarter; sales of heavy fuel oil, butane, propane, and their mixtures as GPL-C; pawnbroking transactions with households; cinema ticket sales; maritime and air construction site operations; services related to tourism, including hotels, spas, classified catering, travel, and tourist vehicle rentals (until 31 December 2024); recoverable waste and products from the processing of tilapia fish; and sales of recyclable waste such as aluminum, iron, wood, glass, cardboard, plastic, paper, rubber, used tires, engines, gearboxes, lubricating oils, edible oils, fats, and lead batteries.

The acquisition of products, goods and services already benefiting from a VAT exemption or VAT franchise regime is zero-rated.

Other Consumption Taxes

Imports are subject to customs duties with the following rates: duty-free, 5%, 15%, 30%, or 60%.

Tobacco products are subject to excise tax set at the rate of 5% starting from 2022. Article 72 of FL2024 increases the rate on tobacco products from DZD 37 to DZD 50, a 35% rise in the ATTP per pack or box. To encourage domestic sourcing by tobacco manufacturers, Article 86 raises the solidarity contribution from 2% to 5% on raw materials and inputs used in tobacco production. Article 10 amends Article 150 bis of the DTC, adjusting the Complementary Tax on tobacco manufacturers' profits: 16% if the integration rate is 40% or higher, and 20% if it is below 40%. New tobacco manufacturers are subject to a 16% tax rate for three years from the start of their business, regardless of their integration rate.
An annual property tax is levied on real estate, with rates varying according to the location of the property.
Various stamp duties apply.

Corporate Taxes

Company Tax

19% (10% reduced rate for reinvested profits in the frame of manufacturing activities)

Tax Rate For Foreign Companies

Corporate tax (Impôt sur les bénéfices des sociétés - IBS) is levied on economic activities carried out in Algeria regardless of residency (including income generated through a representative office and income generated through a full trade life cycle in the absence of a representation office).
According to article 137 of the Algerian Tax Code, a company is considered as an Algerian tax resident entity if it is incorporated under Algerian law and is realising (a) commercial, industrial, or agricultural activities (physical presence obligation) or (b) taxable profits through dependent agents.
Furthermore, corporate income tax (CIT) is applicable in Algeria for both resident and non-resident individuals or entities if:

• They conduct trade, industry, or agricultural business regularly in Algeria without having a permanent establishment based on traditional tax laws.
• They earn profits through an agent based in Algeria.
• They conduct business activities in Algeria that represent an entire commercial cycle.
• They earn profits from the property they own in Algeria.
• They earn profits that fall under the scope of a tax treaty, which gives Algeria the right to tax them.

Capital Gains Taxation

Capital gains are generally taxed as ordinary income at the corporate income tax rate (Impôt sur le Bénéfice des Sociétés, or IBS). In some cases, a 30% relief is granted if the assets have been held for up to three years, or 65% if the assets have been held for longer periods.
An exemption can be granted on capital gains deriving from the disposal of assets, provided that the company commits to re-invest them within three years.

Main Allowable Deductions and Tax Credits

In general, expenses are deductible if they are: registered in the accounts and supported by an invoice, not specifically listed as non-deductible items, incurred in the company's interest, and certain, liquid, and due during the financial year.
Expenses are deductible for amortisation, reserves, interest expenses, rents for premises and equipment, wages, pension expenses, etc. Some non-deductible expenses include fines, gifts, subsidies and restaurant, hotel and entertainment expenses not directly linked to the business.

The depreciation rates usually follow this scheme: office items depreciation rate is 10% or 20%; industrial buildings 5%; cars 20% or 25% (limited to DZD 3 million).
Starting from 2022, the deductibility threshold of low-value expenses is raised from DZD 30,000 to DZD 60,000.
Start-up expenses are deductible when paid and cannot be capitalised and depreciated. Bad debts are deductible if legal action has been taken to recover the debt or when evidence is provided that the receivable has become irrecoverable. Charitable contributions are deductible (capped at DZD 4 million). Advertising gifts are deductible up to DZD 1,000/unit (capped at DZD 500,000).
Companies with the "start-up" or "incubator" label can deduct 30% of their taxable profit for expenses related to research and development, as well as expenses incurred in "open innovation programs." The maximum deduction is capped at DZD 200 million.
Taxes are generally deductible (except the IBS itself, the tax on apprenticeship and training and that on passenger cars).
Losses can be carried forward until the fourth fiscal year after the year in which the loss occurred. Carryback of losses is not allowed.

Incentives are further available for qualifying investments that are declared to the National Agency for Investment Development (AAPI), such as investments to acquire assets included in the creation of new activities, to participate in the share capital of an Algerian company and to take over privatisation activity. Exemptions could apply to VAT, IBS or the Tax on Professional Activity (TAP). Specific rates depend on whether the investment qualifies in the general regime or the derogatory regime (which requires contribution from the Algerian state). A temporary exemption from IBS is granted to investing companies creating at least 500 jobs.
Resident companies are eligible for various rebates: 25% on revenue from building, public works, and hydraulic engineering; 30% on wholesale transactions and retail sales with over 50% indirect duty; 50% on wholesale transactions and retail sales of medicinal products classified as strategic goods with a sales margin of 10-30%; and 75% on retail sales of certain fuels and turnover from installing LPG/C kits.

Other Corporate Taxes

An annual property tax is levied on real estate, with rates varying according to the location. A wealth tax applies with rates varying from 0% (up to DZD 100 million) to 1% (for a value of holdings above DZD 450 million).

Other significant taxes include a Local Solidarity Tax (LST) levied on the monthly turnover, excluding VAT, of economic operators in specific activities (3% for pipeline transport of hydrocarbons and 1.5% for mining activities subject to PIT or CIT), Apprenticeship Tax of 1% of payroll, and Training Tax of 1% of payroll (should be declared and paid on an annual basis).
Social contributions paid by the employer amount to 26% of the gross salary.
A Transfer Tax applies to land, buildings, and ongoing business at a rate of 5% for registration fees, plus 1% for publication formalities for the transfer of ownership of land and buildings.

A 4% tax applies on the import of services (Bank Domiciliation Tax, reduced to 0.5% for the importation of goods or merchandise with a minimum amount of DZD 20,000). A pollution tax is levied on assets that may be harmful to the environment.
Various stamp duties apply.

Other Domestic Resources

Directorate-General of Taxes

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

Directorate-General of Taxes

Withholding Taxes

Dividends: 15% for both residents and non-residents.

Interest: 10%, unless the rate is reduced under a tax treaty.

Royalties: 30% for both residents and non-residents. (unless specified otherwise by a treaty).

Branch remittance tax (applied to remittances by a permanent establishment to its foreign head office): 15% (unless specified otherwise by a treaty).