The 2019 Finance Act, signed last Thursday by President Abdelaziz Bouteflika, is available on our platform. In this world nothing is certain, except taxes !
For the time being, Algerian motorists have been able to negotiate the transition to the New Year with complete peace of mind. No queues at gas stations or fears of fuel shortages. Unlike in the past few years, gasoline prices at the pump have not increased. No increases in public transport either!
The General Directorate of Taxes informs the public of the main tax measures in favor of companies, contained in the Finance Act for 2019.
The option of the actual income tax system:
- The extension of the option to the system of taxation of real income, to foreign companies that do not have a permanent professional establishment in Algeria, under the authority of the wilaya tax authorities and tax centers.
- From now on, the option is made by letter sent, as the case may be, to the Director of Large Enterprises, the Director of Taxes of the wilaya or the Head of the Tax Centre, territorially competent, within a period not exceeding fifteen (15) days from the date of signature of the contract or the amendment to the contract.
Reassessment of fixed assets :
- Exclusion of taxable income, revaluation gains on non-depreciable assets. The gain resulting from the reassessment is recorded as a liability on the balance sheet in an account containing the reassessment difference. The latter is not distributable.
- The capital gain or loss on the disposal of depreciable and non-depreciable fixed assets is calculated on the basis of the original value before reassessment.
Investments and securities:
- Renewal for a period of five (05) years, as from January 1st 2019, of the exemption for TTI (tax on total income) and TCP (tax on corporate profits), in favor of:
- Income from shares and similar securities listed on a stock exchange or from bonds and similar securities with a maturity of five years or more, listed on a stock exchange or traded on an organized market, as well as from shares or units in undertakings for collective investment in transferable securities;
- Income and capital gains on the sale of bonds, similar securities and similar treasury bonds, listed on an exchange or traded on an organized market, with a minimum maturity of five (05) years, issued over a period of five (05) years from January 1st 2019. This exemption covers the entire period of validity of the security issued during this period;
- Banks’ fixed-term deposits for a period of five (05) years or more. (Renewal of the exemption from registration fees for a period of five (05) years from January 1st 2019 for transactions involving securities listed on a stock exchange or traded on an organized market).
- VAT on agricultural plastic film:
Submission of plastic film, intended for the agricultural sector, at the reduced VAT rate of 9%, instead of 19%.
Withholding tax on SFRT:
Submission to a flat-rate withholding tax at a rate of 5%, under the SFRT (single flat-rate tax):
- Individuals regardless of their status with regard to other categories of income, involved in the distribution of goods and services via digital platforms or by using direct network sales;
- Individuals not yet registered with the tax authorities and carrying out operations for the production of goods and services or companies engaged in purchase/resale.
This deduction is made, by companies producing goods and services or by companies activating in the purchase/resale, as the case may be, on the amount of the invoice in all taxes included.
The amount of this withholding tax must be repaid by the company, at the latest on the 20th of the month following the invoicing.
The exemptions in respect of SFRTs, provided for by the legislation in force, are not applicable to the category of taxpayers subject to this withholding