Africa · Tax guide

Algeria

Algeria taxes company profits (IBS) at 19% (production), 23% (construction and tourism) or 26% (other activities), charges VAT at 19%, and lets small businesses pay a single flat tax (IFU) instead. Payments abroad carry substantial withholding. Taxes are administered by the General Directorate of Taxes.

Updated 1 October 2026 · 0 of 6 figures checked against official sources

Check your obligations

At a glance

Corporate tax (IBS): 19% (production), 23% (construction and tourism) or 26% (other activities)
VAT: 19%
Single flat tax (IFU): 5% (production and sales) or 12% (other activities)
Withholding on services abroad: 30%

Corporate tax (IBS)

IBS is 19% (production), 23% (construction and tourism) or 26% (other activities). Three advance instalments are paid and the annual return is filed by 30 April.

The single flat tax (IFU)

Businesses with turnover up to DA 8,000,000 pay the single flat tax of 5% (production and sales) or 12% (other activities) of turnover, which replaces income tax and VAT.

VAT

Businesses under the real regime charge VAT at 19% and file a monthly G50 return.

Payments abroad

Services and royalties paid to non-residents carry 30% withholding, and dividends 15%, unless a treaty lowers them. Foreign contractors may need to register locally.

Key dates

By the 20th of each monthG50 return (VAT, withholdings, payroll tax)
30 AprilAnnual IBS return

Figures and sources

6 figures

Corporate income tax (IBS) rates19% (production), 23% (construction and tourism) or 26% (other activities)

Code des impôts directs et taxes assimilées · Art. 150
Under professional review
Standard VAT rate (reduced 9%)19%

Code des taxes sur le chiffre d'affaires · Art. 21
Under professional review
Single flat tax (IFU) rates5% (production and sales) or 12% (other activities)

Code des impôts directs et taxes assimilées
Under professional review
Turnover limit for the single flat tax (IFU)DA 8,000,000

Code des impôts directs et taxes assimilées · Art. 282 ter
Under professional review
Withholding on services and royalties paid to non-residents30%

Code des impôts directs et taxes assimilées
Under professional review
Withholding on dividends paid to non-residents15%

Code des impôts directs et taxes assimilées
Under professional review

Indicative only. This assessment is a high-level overview of tax obligations in Algeria based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Algeria (an Algerian tax adviser) before making compliance decisions.