On 31 December 2023, Algeria’s Ministry of Finance published the Finance Law for 2024 in the Official Gazette. The Finance Law for 2024 eliminates the 1.5% tax on professional activity (TAP) and introduces the new local solidarity tax (TLS).
Some of the key points of the new local solidarity tax (TLS) are:
- The Turnover Tax (TLS) is imposed on taxpayers in Algeria engaged in the transportation of hydrocarbons through pipelines and mining whose profits are subject to global income tax or corporate income tax;
- The turnover levy (TLS) is applied to the total turnover amount, excluding VAT;
- Mining companies are eligible for a 30% discount on wholesale sales;
- The standard TLS rates are 3% for transporting hydrocarbons through pipelines and 1.5% for turnover generated from mining activities;
- TLS payments must be paid monthly, within the due date of the 20th day of the following month in which the turnover is generated
- The global income tax (IRG) and corporate income tax (IBS) exemption for raw milk collection and sales has been extended;
- The supplementary tax rates on the profits of tobacco manufacturing companies will be increased. The new increased rates will be 16% for companies with an integration rate equal to or greater than 40% and 20% for companies with an integration rate below 40%;
- Requirements for VAT taxable persons to declare exempt turnover in their monthly declarations have been introduced;
- The conditions for a tax payment plan have been eased, which includes a reduction in the initial minimum payment from 10% to 5%.
