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Algeria: New Finance Law Published

(Jan. 23, 2013) On December 30, 2012, Algeria’s Finance Law 2013 appeared in the country’s official gazette. (Monia Naoum, Algeria: Finance Law 2013 Published, TAX NEWS SERVICE (Jan. 18, 2013), International Bureau of Fiscal Documentation (IBFD) online subscription database.) Some key provisions of the law were reported previously, when the draft was adopted by the National Assembly on November 11. These include:

  • The net wealth tax minimum threshold will be increased to DZD50 million (about US$636,000) from the previous DZD30 million, and the applicable tax rate will change for different categories of high income, to:

– 0.25% for wealth of DZD50-100 million;

– 0.50% for DZD100-200 million;

– 0.75% for DZD200-300 million;

– 1.00% for DZD300-400 million; and

– 1.50% for over DZD400million.

  • Imported merchandise that is re-exported will be subject to taxes, duties, and fees.
  • Small and medium-sized enterprises owned in part by the Public Investment Fund will be eligible for guarantees provided by a Credit Guarantee and Investment Fund.
  • The threshold for investments to be governed by the National Council for Investment will increase from DZD500 million to DZD1.5 billion. (Monia Naoum, Algeria: Draft Finance Law 2013 Adopted by Parliament, TAX NEWS SERVICE (Nov. 12, 2012), IBFD online subscription database.)

The National Council for Investment is a government body that determines investment strategies and approves special investment incentives for certain sectors of the economy. (U.S. Department of State, 2011 Investment Climate Statement –Algeria (Mar. 2011).)

Once the Finance Law was published, two other provisions were reported. Mining companies now established in four cities (Illizi, Tindouf, Adrar, and Tamanghasset) will no longer benefit from a 50% reduction in corporate income tax; the reduction had originally been scheduled to last for five years, beginning January 1, 2010. In addition, large enterprises that submit refund claims for excess value-added tax they have paid are entitled to an advance payment equal to half the amount they claim. (Algeria: Finance Law 2013 Published, supra.)

The law became effective on January 1, 2013. (Id.)