Benefits granted to the investments

The general focus of the Algerian investment system is summarised in the following formula:
The more the investment is of interest to the national economy, the more significant the benefits granted to it will be.

These benefits vary according to the location and type of investment.
They are organised into three major schemes:

• The general scheme concerns current investment projects located outside the areas to be developed.
  
• The scheme for areas to be developed (or exceptional) concerns current investment projects located within the areas to be developed.
• The investment agreement scheme concerns the investment projects which pose a particular interest for the national economy.

Benefits granted for the general scheme

Project setup phase:

• VAT (TVA) exemption on non-excluded goods and services,
• Exemption of customs duties on non-excluded imported equipment,
  
• Exemption of the transfer duty on real estate acquisitions
  

Execution phase:

• 3-year exemption from the Tax on Company Profit (TCP) (TAP)
• 3-year exemption from the Professional Activity Tax (PAT)(TAP).

Benefits granted for the scheme for areas to be developed

The project setup phase:

• VAT (TVA) exemption on non-excluded goods and services,
• Exemption of customs rights on imported equipment,
• Exemption of the transfer duty on real estate acquisitions,
• Registration right at a reduced rate (0/00) for constituent acts and capital increases,
• The possibility for total or partial assumption by the State of expenses related to the infrastructural work necessary to carry out the investment.
  

Execution phase:

• Ten-year exemption from the Tax on Company Profit (TCP)(IBS)
• Ten-year exemption from the Professional Activity Tax (PAT)(TF)
• Ten-year exemption from the Land Tax (LT)(TF)
• Possibility of granting other benefits (deficits report and redemption periods).
  

Benefits granted for the agreement scheme

The investments arising from this scheme may enjoy all or part of the following benefits:

Project setup phase (for a maximum of five years):

• Exemption from duties, taxes, levies and other fiscal deductions on all imported goods and services or those purchased locally,
• Exemption from the transfer duty on real estate acquisitions and legal advertising,
• Exemption from registration duties, (LT)(TF).
• Exemption from the Land Tax (LT)(TF)
  

Execution phase (for a maximum of ten years):

• Exemption from the Tax on Company Profit (TCP)(TAP),
• Exemption from the Professional Activity Tax (PAT)(TAP) can grant other additional benefits or facilities to Apart from these benefits, the CNI investments made within sectors posing a particular interest for the national economy.
  

TCP(IBS): Tax on company profit

All capital companies are subjected to this tax. The tax rate for profits gained in Algeria is 25% and is reduced to 12.5% if the profits are reinvested. This rate is one of the lowest in the Maghreb.