Algeria’s Ministry of Finance has issued two key orders: the Order of 15 February 2024, outlining transfer pricing documentation requirements, and the Order of 25 February 2024, setting depreciation periods for fixed assets to calculate taxable income.
1. Order on transfer pricing documentation
The 15 February 2024 order outlines the required transfer pricing documentation for a tax audit, including (a) information on related parties and (b) details about the audited company.
(a) Information on related parties
- Companies undergoing tax audits must provide information about their related party group, including a diagram of the group’s structure and locations, descriptions of activities, presentation of intangible assets, inter-company financial activities, and the group’s financial and tax situation
(b) Information on the company undergoing audit
- The tax audit information must include an overview of the company’s organisational structure and activities, details of transactions with related parties with comparability and functional analysis, and financial data from the company’s statements used in its transfer pricing method.
Both documentation must be provided in French or Arabic on paper and electronic formats.
2. Order setting depreciation period for fixed assets
An order has set the depreciation period for fixed assets (tangible and intangible) on the balance sheet for the 2023 fiscal year. The tax depreciation period for intangible assets is 2–5 years, while for tangible assets, it ranges from 3–100 years.
The depreciation period for fixed assets begins on the date they are recorded on the balance sheet or, for assets acquired through investment incentive schemes, from the start of the investment exploitation phase.
