Algeria’s Council of Ministers approved the 2027 Finance Bill proposing changes to corporate and personal taxation, VAT exemptions, indirect taxes and mining royalties, alongside new reporting obligations and penalties for non-resident companies and digital platforms, a special VAT collection regime for non-resident digital service providers, and a 10% tax reduction for eligible taxpayers using electronic payments.

RF Report

Algeria’s Council of Ministers approved the Finance Bill for 2027 on 4 October 2026, which began parliamentary examination on 13 October 2026. The proposed measures remain subject to parliamentary adoption.

The Finance Bill for 2027 provides key legislative and financial measures concerning the Algerian state budget and tax regulations for 2027. They detail updates to direct taxation, property and registration fees, and stamp duties aimed at modernising fiscal policies and improving tax collection.

Additionally, the Bill introduces significant amendments across direct corporate taxation, VAT exemptions, indirect duties, mining royalties, and tax procedure controls.

Direct taxes & corporate taxation (IBS & IRG)

  • Wealth tax expansion: The threshold for the wealth tax is lowered from DZD 100 million to DZD 80 million. The bill introduces a progressive scale starting at 0.20% (for DZD 80M –120M) and capping at 1% for net assets exceeding DZD 400 million.
  • Additional corporate tax on alcoholic beverages: The 20% additional tax on corporate profits (IBS) previously applied to tobacco manufacturers is extended to companies producing or importing beer.
  • Stock exchange listing incentive: The IBS tax reduction for publicly listed companies—scaled according to the percentage of capital opened to the public—is renewed for five years starting 1 January 2027.
  • R&D & open innovation deductions: Large enterprises (turnover DZD 2 billion) required to allocate 1% of profits to R&D can now count expenditures incurred through open innovation partnerships with accelerated enterprises (entreprises accélérées), alongside startups and incubators.
  • Green energy & reforestation deductions: The ceiling for tax-deductible expenditures on green hydrogen production, renewable energy installations, and forest re-afforestation is raised from 5% to 10% of taxable profit.
  • AADL 3 e-payment banking deduction: Commercial banks and Algérie Poste receive an IBS deduction for absorbing electronic payment transaction fees on instalment payments made by subscribers under the AADL 3 housing program through 31 December 2027.
  • Venture capital & investment fund exemptions: Securities issued by venture capital entities (FCR) and specialised mutual funds (FCT) enjoy a 10-year exemption from IBS/IRG and registration duties starting 1 January 2027. Investment funds established under international agreements receive a 10-year IBS exemption on distributed profits.
  • Prevention of international double taxation: Unilateral tax credit mechanisms are formally codified in domestic legislation, allowing Algerian tax residents to credit foreign-paid taxes against domestic liabilities up to the equivalent Algerian tax amount.

Value added tax (VAT) & turnover tax adjustments

  • E-commerce scope & territoriality: Sales and services conducted via local or foreign online platforms are explicitly brought into the statutory scope of VAT. Intangible digital services provided to recipients located in Algeria are treated as rendered in Algeria for tax territoriality purposes.
  • Sonelgaz Infrastructure procurement regime: The VAT framework for Sonelgaz infrastructure and pipeline network contracts is converted into a permanent VAT-free purchase system (régime d’achat en franchise de TVA).
  • Agricultural drip irrigation & inputs: A reduced 9% VAT rate is introduced for locally produced perforated seedling trays, planting pots, drip irrigation pipes, and geomembranes used in agriculture.
  • Extension of key tax exemptions until 31 December 2029: Exemptions are extended to fixed internet access charges; raw soybean oil; locally produced pulses, including beans, chickpeas, lentils and rice; fresh fruits, vegetables, eggs and locally produced poultry; and locally produced raw vegetable oil and soybean meal.

Indirect taxes, stamp duty, & special fees

  • Tobacco tax adjustments: The additional duty on tobacco products increases by DZD 10 per pack (from DZD 75 to DZD 85), allocating DZD 36 per pack directly to the state budget. The 5% flat-rate tobacco tax is restructured into a single-stage consumption tax levied upon factory release.
  • Bank domiciliation tax exemptions: Expanded to cover air/maritime freight charges, overseas services directly linked to hydrocarbon export operations, Investment Promotion Agency (AAPI) project services, and film distribution rights acquisitions.
  • Cap on cash invoice stamp duty: To curb non-invoiced informal transactions caused by uncapped cash fees, stamp duty on cash invoices exceeding DZD 100,000 is capped at DZD 10,000.
  • Automobile vignette increases: Vignette fees for tourist and utility vehicles with an engine rating of 10 HP and an age of less than six years increase to DZD 40,000 for vehicles under three years old and DZD 30,000 for vehicles aged three to six years.
  • Hazardous chemical import authorisation fee: A new DZD 25,000 fee is levied on import authorisations for hazardous industrial chemicals processed by the Ministry of Hydrocarbons.
  • Specific consumption tax on beer: The specific consumption tax on beer increases to DZD 6,000 per hectolitre for beer with an alcohol content of 5%, representing a 37% increase, and DZD 7,000 per hectolitre for beer with an alcohol content above 5%, representing a 25% increase.

Mining sector taxation framework

The bill introduces an updated mining tax framework aligned with Mining Law No. 25-12 of August 2025, covering document issuance fees of DZD 50,000 to DZD 260,000, annual surface taxes of DZD 70 to DZD 350 per hectare depending on the project stage and mineral category, and mining royalties ranging from 1.5% to 6% of the market value of extracted products

Tax Procedures, digital audits, & capital regularisation

  • Voluntary tax compliance program: Unregistered resident individuals holding informal funds can regularise their tax status by opting for a single 12% discharge tax on declared capital through 31 December 2027. This clears all tax liabilities without legal penalties, excluding funds linked to illicit, corrupt, or terrorist activities.
  • Web & social media tax inspection tools: Tax auditors are granted explicit legal authority to gather, process, and cross-reference public data from websites and social media platforms (Facebook, Instagram, TikTok, LinkedIn) to detect undisclosed digital economy income (influencer revenue, e-commerce) and flag wealth inconsistencies. Collected data can be retained for up to six years.
  • Extension of state pre-emption right: the timeframe for the state to exercise its right of pre-emption on undervalued real estate or commercial property sales is extended from three months to one year from the registration date.
  • Customs duty option for change of residence (CCR): Overseas citizens returning under a Change of Residence declaration whose personal property exceeds the DZD 10,000,000 threshold can clear excess items under a simplified single flat duty rate of 60%.

The Finance Bill for 2027 also introduces modernised reporting standards, digital economy taxation, and targeted electronic payment incentives.

Non-Resident companies: Reporting obligations and penalties

Algeria’s 2027 Finance Bill proposes mandatory electronic annual reporting of all contracts performed in Algeria by non-resident companies operating through a permanent establishment or other professional tax establishment.

The declaration must include contract details, Algerian co-contractors, revenue received, income allocation and applicable tax regimes. The requirement extends to all contracts performed by the company in Algeria, with filings centralised at the tax office handling the initial contract.

The bill also increases the penalty for non-compliance with contract reporting and notification requirements sixfold, from DZD 500,000 to DZD 3 million.

Annual reporting of distributed income

The bill requires companies distributing income to submit an electronic annual statement by 30 September, even if no income was distributed during the fiscal year. The statement must identify recipients, disclose tax and identification numbers, shareholding percentages, profit distribution details, amounts paid, withholding tax and banking information.

Proposed penalties include DZD 1 million for failure to file, graduated fines of DZD 30,000 to DZD 80,000 for late filing, and fines for inaccurate entries or failure to provide supporting documentation.

Digital platforms reporting requirements

Resident and non-resident digital platform operators facilitating sales of goods or services in Algeria must register with the tax authorities and electronically report transactions from the preceding year by 31 January.

Reports must include seller information, transaction volumes, remuneration and payment methods. Platforms must also inform users that transactions conducted in Algeria are taxable and that relevant data may be shared with the tax authorities.

Failure to comply within 30 days of formal notice may result in a DZD 1 million fine and a request to suspend access to the platform’s website.

VAT collection by non-resident digital platforms

The bill introduces a special VAT collection regime for non-resident platforms supplying intangible digital services to customers in Algeria without a permanent establishment. Covered services include streaming, cloud storage, software downloads, software-as-a-service and online mediation.

Operators must register for a tax identification number, maintain transaction records for 10 years, and submit quarterly VAT returns and payments by the 20th day of the month following each quarter.

Failure to register or remit VAT within 30 days of formal notice may attract a DZD 5 million fine and suspension of platform access in Algeria.

Tax incentives for electronic payments

The bill proposes a 10% tax reduction for taxpayers subject to the Single Flat-Rate Tax (IFU) or Personal Income Tax (IRG) on non-commercial profits (BNC), provided at least 50% of their annual turnover or professional receipts are collected through electronic payment instruments. Supporting evidence must accompany the annual tax return. The incentive would apply to qualifying transactions carried out through 31 December 2028.