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Algeria - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
The corporate income tax rate is 30% + 3% applicable on the wage bill of the company. The Tax rate on Professionnal Activity (TAP) is 2.55% applicable on the turnover, except VAT.
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Taxe rate on long-term capital gains |
Capital gains are taxed in Algeria at the rate of 30%.
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Tax rate on branches |
Foreign branches are taxed on profits made in Algeria.
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Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
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Income tax rate |
The rate of the income tax is constituted with a progressive table of 7 brackets. Tax Schedule 2003:
From 0 to 60,000 DA: 0%
From 60,000 to 180,000 DA: 10%
From 180,001 to 360,000 DA: 20%
From 360,000 to 1,080,000 DA: 30%
From 1,080,000 to 3,240,000 DA: 35%
From 3,240,000 to 9,999,999 DA: 40%
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VAT rates
Standard rates |
The base rate is 21% and the raised rate is 40%.
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Reduced rates |
7% (special reduced rate), 14% (reduced rate).
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Other important taxes
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Name of tax |
Rate |
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Tax Specific Additional
(TSA)
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Between 10% and 50% on the CIF value of import of some luxuries.
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Wealth tax
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Variable rate
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Donations
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14%
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Successions
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8%
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Melt company benefit schemes
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3%
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Specific rights on Pharmaceutical products
(DSPP)
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15%
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Accounting
Introduction
Business accounting is governed by a national accounting plan which determines accounting principles as well as rules of preparation and presentation of the accounts of companies. The accounting plan defines a general frame but has suffered from adaptations in some sectors such as real estate, tourism, agriculture, insurances, etc. The National council of Accounting proposes a renovation of the plan to adapt it to the current legal and economic environment of Algeria.
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Obligations and publications
Declarative obligations: During your activity, you have to subscribe to monthly and annual statements :
- Monthly statement relatived to taxes perceived in cash or by tax withholding: any company has to subscribe before the 21st of each month a monthly statement serie GN?0.
- Annual statement of the results of companies ( IBS) : any company has to subscribe to the tax inspectorate from which they depend, an annual statement of results serie E N ' 6 before the 1st April of each year.
Certification and auditing
For the moment, Algeria has no agreement with the IASC (International Accounting Standards Committee), but intends to contact this organization and other foreign bodies in charge of the accounting normalization. The control and certification of the legality of accounts were made compulsory by a decree of 1993. Besides, the finance law of 1998 has introduced the obligation for the EPIC to guarantee their accounts by an accountant. This operation is made each year. On the other hand, an external auditor is not a legal requirement. Nevertheless, companies have to set up internal audit stuctures (Law 88-10).
Professionals and representative organizations
The National Council of the Chartered accountants regroups independent people of the accounting profession (experts, auditors). This organization is charged to set up working standards and to deliver approvals. The National Council of Accounting is an interministerial and interprofessional body under control of the Ministry of finances and charged to promulgate standards and accounting rules. This council is also in charge of the problems of application and of interpretation of standards.
Comments
The mission of the Auditors is defined by a decision of the Ministry of finances on the proposal of the National Council of the Chartered accountants, the auditors and the chartered accountants.?
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Last modified in
January 2003
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