On 10 May 2020, the Council of Ministers arranged a meeting by video conference regarding the discussion and approval of draft Finance Bill 2020. In that meeting, following issues were coming up:
- The deadline extension of the 50% reduction in the benefit of income earned in the southern regions until 2025.
- The increase in withholding tax rate from 24% to 30% for foreign companies operating under contracts for the provision of services in Algeria to encourage them to open offices in Algeria.
- As of 1 June 2020, the council of ministers approved an exemption from global income tax (IRG) for wages up to DZD 30,000.
- Cancellation of the right of first refusal and its replacement by the prior authorization of foreign investments, and the cancellation of the obligation to finance them through the use of local funding.
- Exemption from customs taxes and Value Added Tax (VAT) for a period of two years renewable for components acquired locally by subcontractors in the mechanical, electrical and electronic industries and spare parts, and the creation of a preferential regime for assembly activities.
- The revision of rule 49/51 with the exception of strategic sectors and product buying and selling activities. At the end of the meeting, the President of the Republic gave instructions on how to submit rule 49/51 to transparent regulatory texts in order to avoid any misinterpretation or ambiguity as to the preservation of national wealth.
