On 29 December 2022, Algeria published the Law No. 24-22 in the official gazette implementing the 2023 finance law. The law includes the following tax measures.
- Increase in cash expense deductible thresholds for corporate income tax (BIS) and global income tax (IRG) from DZD 300,000 including all taxes to DZD 1,000,000 per invoice.
- Research and development (R&D) expenses within the company are deductible up to 30% of the profit amount up to a maximum of DZD 200,000,000. Expenditure arising from the open innovation programs implemented with the companies holding the “Start-up” or “Incubator” label are subject to the same deduction conditions.
- The establishment of the depreciation period allowed for deduction, by a decree of the Ministry of Finance to avoid differences in position and to provide more legal certainty to taxpayers.
- The provisions of Article 8 of Finance Law 2023 modify and complete Article 141-3 of the DTC in relation to the deduction of depreciation for tax purposes by specifying the depreciation period rules and allowable depreciation rates for CIT purposes.
- From 1 January 2023, a temporary tax exemption from corporate income tax (IBS) for a period of five years will apply to profits from deposits in investment accounts made within the framework of banking operations related to Islamic finance.
- A permanent exemption in favor of approved fishing and aquaculture cooperatives and their unions, applicable only to transactions made between members of the same cooperative.
